Vol. 466 No. 1
21 Mr. N. Treacy asked the Minister for Transport, Energy and Communications the amount of grants paid out by the Irish Energy Centre since its establishment; the categories of grants paid; the number of organisations that have received these grants; the amount of Exchequer and European funding involved; and if he will make a statement on the matter. [10916/96]
The Irish Energy Centre operates two grant schemes — the energy audit grant scheme and the energy efficiency investment support scheme.
The grant-aid consists of European Regional Development Fund moneys made available under the Economic Infrastructure Operational Programme 1994-1999. The matching finance is private sector expenditure leveraged out by these grant schemes.
The total amounts allocated for these schemes under the operational programme is £4 million for the energy audit grant scheme and £9,125,000 for the energy efficiency investment support scheme.
The energy audit grant scheme was launched in September 1994. Under this scheme the Irish Energy Centre provides grants of up to 40 per cent, subject to a maximum of £5,000, to energy users in the industrial, commercial and institutional sectors towards the cost of hiring consultants to conduct energy audits and advise on the steps to be taken to improve energy efficiency. Under the energy audit grant scheme, a total of £304,825 has been sanctioned to date for 178 organisations. Of this, £173,000 has been paid to 85 organisations. The amount sanctioned is projected to result in total investment of £760,000.
The energy efficiency investment support scheme was launched in December 1994, and provides grant assistance to energy users in the industrial, commercial and institutional sectors for investment in energy efficiency technologies. Grants of up to 40 per cent of the cost of the measures are available subject to a maximum of £100,000.
This scheme covers the selective implementation of the recommendations of energy audits and provides grant support for investment in targeted energy efficient technologies. Support for targeted technologies is provided by way of competitive calls for proposals. To date calls for proposals in respect of the following have been issued: building energy management systems for hotels and hospitals; variable speed drives; modular boilers; systems for heat recovery from liquid process streams; combined heat and power; monitoring and targeting systems; good practice in boiler houses.
Under the energy efficiency investment support scheme, £2,809,153 has been sanctioned for 92 organisations. Of this, £99,000 has been paid to ten companies. The amount sanctioned is projected to result in total investment of £10 million under the energy efficiency investment support scheme.
Where is all this leading us? Does the Minister have any national figure on the success or otherwise of our energy saving campaigns and schemes to date? Does he have a target for the next few years? We have energy saving scheme after scheme and project after project. Have we any single national target representing the amount of energy to be saved in a particular period and how are we doing against that target?
The target set by my predecessor and adopted by me was for a saving of £50 million during the period of the operational programme, and £26 million of that target relies on the two schemes I outlined in the question. The activities to date have resulted in savings of £5 million and £1.7 million respectively under the energy audits grant scheme and energy efficiency investment schemes. These two schemes are a major part of the energy saving programme that we have identified through the Irish Energy Centre. We give grant-aid to companies to do an energy audit in the first instance and then substantial grant assistance to carry out the implementation of that audit.
Did the Minister say that £56 million is to be spent?
I said that the £50 million is the target for savings in the energy programme.
How much money did the centre have at its disposal? A previous reply stated it was £21 million. Given that the purpose of the Irish Energy Centre is to save on energy costs, why, when it was established, was £8 million spent on offices and relocation of staff? Why did the Irish Energy Centre go into competition with the ESB which spends £8 million annually? Does the Minister see an overlap between the two and is he concerned about the waste of money to date in the establishment of this centre?
The question are valid. I would like an opportunity to answer them but they are not relevant to the question before us.
We are talking about savings.
I would be very happy to answer the question in detail if the Deputy puts down either a written or an oral question. Quite simply, it is not relevant to the question today and I do not have the detailed technical information for which the Deputy has asked.
With respect, we are talking about savings. In reply to a Dáil question the Minister said the centre had £21 million. How can he say we are saving money when £8 million has been spent on offices and the energy centre is competing with a section of the ESB which is already spending £8 million on this area? I would be very surprised, and think it remiss of the Minister, if he did not have an answer to those questions because they are appropriate to the questions being put here.
It is the normal practice in the House that if the Deputy puts down a question I will give the fullest and most detailed answer I possibly can. If the Deputy wants to refer it to my office I will give it to him separately.
How will the energy centre pay its way when the EU money runs out? At present EU money will finance the running of the office. How will it get resources and who will it charge when the EU money runs out? From where will the finance come?
The office was established on the basis of the EU funding available. We are now examining the best way forward at the end of that period of funding, which is 1999.
The simple answer is that the Minister does not know.
Neither does the Deputy.
The Minister is setting up another quango.
I did not set it up; the Deputy did.
Perhaps the Minister's brief will allow him answer this question. Is he happy with the co-ordination of activities between the various groups involved in energy saving, given the manifest duplication that already exists and that the energy centre is spending £21 million and the ESB is spending a further £8 million? Surely there is duplication and a lack of co-ordination between the two.
The activities of various players in the private and public sector energy utilities are co-ordinated by the National Energy Board which was set up by my predecessor and which I am glad to continue to support. It was not set up by me in my term of office but I was part of the Government which set it up. It is doing an excellent job in co-ordinating the activities of the various players in the energy field.
The fact that Eolas was transferred was a good start.
It has produced invaluable reports. I compliment the Deputy's colleague who set up this board and the Energy Board. They are doing an excellent job and we are monitoring them to ensure they continue to do so.
