Pearse Doherty (Donegal, Sinn Fein)
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520. To ask the Minister for Communications, Energy and Natural Resources further to reports that the State is facing fines of up to €75 million each year if it does not meet its target of obtaining 16% of total energy needs from renewable sources by 2020, if his Department has factored these fines into expenditure projections over the next five years; the estimated impact of the fines on the net fiscal space for the next five years; and if he will make a statement on the matter. [22817/17]

Denis Naughten (Roscommon-Galway, Independent)
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The EU Renewable Energy Directive 2009/28/EC set Ireland a legally binding target of meeting 16% of our energy demand from renewable sources by 2020. Ireland is committed to achieving this target through meeting 40% of electricity demand, 12% of heat and 10% of transport from renewable sources of energy, with the latter transport target also being legally binding. While good progress has been made to date, with the Sustainable Energy Authority of Ireland advising that 9.1% of Ireland’s overall energy requirements in 2015 were met from renewable sources, meeting the 16% target remains challenging.

The Renewable Energy Directive provides a comprehensive framework for Member States to work towards achieving individual and EU renewable energy targets including mechanisms for countries to work together such as statistical transfers, which allow Member States to meet their targets by purchasing credits from Member States that overachieve on their renewable targets. 

The focus remains firmly on meeting our 2020 target and a number of interventions have been taken to support renewable energy, including the Renewable Energy Feed in Tariff supports. New measures are also in development including a Renewable Electricity Support Scheme and a Renewable Heat Incentive. In any event the cost of purchasing statistical transfers, should any potential shortfall in Ireland's target arise, has yet to be established and will depend on a number of factors, particularly available supply and market costs.

The Sustainable Energy Authority of Ireland (SEAI) in a document entitled Ireland’s Energy Targets – Progress, Ambition and Impacts (published in April 2016) has estimated that the cost to Ireland of not meeting our overall renewable energy targets may be in the range of €65 million to €130 million for each percentage point Ireland falls short of the overall 16% renewable energy target.