Dáil Éireann Debate, Tuesday - 30 November 2004
102 Mr. Hogan asked the Minister for Communications, Marine and Natural Resources if he is satisfied that adequate encouragement is being given to the production of alternative energy having particular regard to the need to cater for increased demands, protection of the environment and cost effectiveness; and if he will make a statement on the matter. [31182/04]
View answerThe promotion of renewable energy technologies is a key priority of the Government. The Green Paper on Sustainable Energy 1999 established a target to add 500 megawatts of new renewable energy based electricity generating plant to the electricity network by 2005.
Further proposals in the course of the most recent support programme, AER VI, are being implemented to support the construction of an additional 140 MWs generally, an additional 50 MWs in an offshore wind category and an additional 28 MWs specific to biomass powered CHP plants. This represents an increase of more than 40% on the original target and is itself evidence of the growing importance this Government places on renewable energy technologies.
AER VI brings to a close an initial programme to add renewable energy technologies to the electricity network at a level which does not raise serious technical issues. However, planning for future programmes at increased penetration levels does raise significant technical issues which must be addressed in order to maintain system security for electricity customers. This plan may in turn require a revision of the current support programme to embrace changes required to allow higher levels of wind energy penetration in particular.
At the end of last year a consultation document Options for Future Renewable Energy Policy, Targets and Programmes was published. The consultation document and supporting annexes which examine in detail support mechanisms and renewable energy policies in Ireland as well as in other European countries, were published on my Department's website and looked at key challenges in the future including policy, future green energy markets, how to overcome barriers to the deployment of renewable energy and future options for market support mechanisms.
In May of this year a renewable energy development group, chaired by my Department, was established. The group comprises relevant experts from the administrative and scientific sector. This group will advise on future options on policies, targets, programmes and support measures to develop the increased use of renewable energy in the electricity market to 2010 and beyond. This group's report which is due before the end of this year will form the basis of my future policy proposals.
The AER programme is primarily about supporting renewable energy in the electricity market. Biofuels are also renewable fuels which can be used as alternatives for fossil fuels in vehicles. Earlier this year, my Department secured an amendment to the Finance Act 1999, which allows the Minister for Finance to apply a relief from mineral oil tax for biofuels essential to a pilot project to produce biofuel or to research aspects of biofuel production and usage as a motor fuel.
My Department is finalising details of the scheme with the Department of Finance. The European Commission has confirmed that the scheme would represent a State aid and, consequently, its approval is required. The EU energy tax directive 2003 envisages such tax relief and the Commission has approved schemes for excise relief of biofuel in other EU member states. Formal application for Commission approval will be made shortly by the Department of Finance and, assuming approval is granted, the necessary commencement order will then be signed.
In tandem with these programmes, Sustainable Energy Ireland, SEI the independent non-commercial State body focused exclusively on sustainable use of energy including deployment of renewable energy sources, has commenced a challenging work programme to increase energy efficiency and to promote renewable energy technologies. In the renewable energy field specifically SEI has opened a research, development and demonstration programme for renewable energy technologies. The programme is open to a wide range of proposals including policy studies, field research, feasibility studies and technology RD & D.
