Written answers

Wednesday, 26 October 2016

Department of Communications, Energy and Natural Resources

Public Service Obligation Levy Application

Photo of Joan CollinsJoan Collins (Dublin South Central, Independent)
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32. To ask the Minister for Communications, Energy and Natural Resources his plans to phase out fossil fuel subsidies within the context of just transition; and if he has a timescale in place. [31828/16]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The Energy White Paper, Ireland's Transition to a Low Carbon Energy Future 2015-2030, sets out a long-term vision to guide Irish energy policy and actions to be taken in the energy sector from now until 2030, in order to transform Ireland into a low carbon society and economy by 2050 and reduce our fossil fuel dependency. The Programme for Government acknowledges that Ireland is too reliant on imported fossil fuels for our energy needs and commits to reducing this import dependency while maintaining energy security, affordability and reducing energy-related emissions.

The Public Service Obligation (PSO) Scheme was designed to reduce our fossil fuel import dependency through the introduction of support for the development of Ireland's indigenous energy industry - including for peat generation, security of supply purposes and renewable energy generation.

The peat element of the PSO was introduced from 2003 to support electricity generation from indigenously sourced fuel. 

The White Paper on Energy policy has set out a vision to decarbonise the energy sector in Ireland in the coming decades. This will ultimately involve moving away from higher emission fuel types to lower emissions fuels (such as gas), or zero carbon renewable energy technologies.

This process has already started and is reflected in the fact that the PSO for the Edenderry peat-fired power station expired in December 2015. The Edenderry power station is now in receipt of support for biomass co-firing via REFIT 3 for up to 30% the size of the plant. The PSOs for the West Offaly and Lough Ree peat power stations expire in 2019.

Analysis by the Sustainable Energy Authority of Ireland show that 9.1% of Ireland's overall energy requirements in 2015 were met from renewable sources and that this avoided €286 million of fossil fuel imports.

My Department is currently working on the development of a new Renewable Electricity Support Scheme (RESS) that will aim to further stimulate our indigenous renewable energy industry and reduce our overall dependency of imported fossil fuels. This new support scheme for renewable energy is expected to become available in late 2017.

The introduction of measures to reduce Ireland's fossil fuel use and Green House Gas emissions over the long-term needs to strike a balance between meeting our overarching long-term decarbonisation objectives, with the need for low carbon, secure and affordable energy supplies.

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