Bernard Durkan (Kildare North, Fine Gael)
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71. To ask the Minister for Communications, Energy and Natural Resources the degree to which the alternative energy sector continues to grow with particular reference to the maximisation of alternative renewable energy with consequent benefit to the environment in terms of reduced emissions and to the economy in terms of import substitution in addition to reducing reliance on imported fuels; the extent to which developments regarding a European energy grid continue to be a viable option; and if he will make a statement on the matter. [29798/17]

Denis Naughten (Roscommon-Galway, Independent)
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The 2009 EU Renewable Energy Directive sets Ireland a legally binding target of meeting 16% of our energy requirements 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 energy sources. The Sustainable Energy Authority of Ireland (SEAI) has calculated that 25.3% of electricity, 6.5% of heat and 5.7% of transport energy requirements were met from renewable sources at end 2015. Overall, SEAI analysis shows that 9.1% of Ireland’s total energy requirements in 2015 were met from renewable energy sources.

The Government has a range of policy measures and schemes in place  or under development designed to stimulate further progress in the domestic renewable energy sector. These include the Renewable Energy Feed in Tariff (REFIT) schemes for the electricity sector and the Biofuel Obligation Scheme in transport sector. These schemes have proved successful at incentivising large-scale investment in the renewable industry in recent years.

My Department is also currently developing a new Renewable Electricity Support Scheme and a Renewable Heat Incentive (RHI) Scheme, designed to encourage further investment in the renewable electricity and heat sectors, respectively.  The introduction of any schemes - including the overall costs and technologies to be supported - are subject to Government approval and State Aid clearance from the European Commission.

The 2016 Programme for Government recognises that Ireland’s long-term interests are best supported by further decreasing our dependence on foreign fossil fuels through the continued development of indigenous renewable energy.  Ireland’s dependency on imported fossil fuels – which increased to 88% of all energy used in 2015 – means that the Irish economy is particularly exposed to international energy price volatility. The cost of all energy imports to Ireland in 2015 was approximately €4.6 billion, and while that was down from €5.7 billion in 2014 due mainly to falling oil and gas import prices, further increases would place cost pressures on businesses and households across the country. Maintaining investment in the deployment of indigenous renewable energy sources will help to break this dependency and ultimately help to reduce costs on businesses and households.

As Minister for Climate Action and Environment, I recognise that energy and climate action are inextricably linked.  Using less energy, and using it more efficiently, is the most cost effective and accessible way for us all to take action on climate change. However, increasing the use of renewable energy will also assist efforts to reduce carbon emissions.

In relation to a European energy grid, Ireland is one of ten North Seas countries that signed a in 2016 to support closer energy cooperation in the North Seas area. While efforts in this area are at an early stage, the aim is to create good conditions for the development of offshore wind energy in order to ensure a sustainable, secure and affordable energy supply in the North Seas countries. This is a positive initiative that has the potential to stimulate the further deployment of renewable energy and reduce Ireland’s dependency on fossil fuel imports.