Dáil Éireann Debate, Thursday - 29 November 2012
154. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which the full potential of this country’s ability to export electricity is likely to be achieved in the short and medium term; the degree to which this is likely to impact on the economy in the future; and if he will make a statement on the matter. [53585/12]
View answerIn 2011, Ireland had 17.6% renewable electricity, 3.6% biofuels and 5% renewable heating, which amounted in total to 6.5% of all energy consumed being from renewable sources.
Our intention, in order to meet our 2020 binding targets, is to increase renewable energy to 40% in the electricity sector, 10% in the transport sector and 12% in the heating sector, which together amounts to 16% overall, in line with our legally binding target under the EU Renewable Energy Directive.
Separate to meeting our challenging national target, the potential for export of renewable electricity was outlined in the Strategy for Renewable Energy 2012-2020, which I published earlier in the year.
The mechanisms by which renewable energy can be traded with another country are provided for under the Renewable Energy Directive in Articles 6-12 on cooperation mechanisms.
Countries can agree statistical transfer, which involves the purchase of renewable credits by the importing country in order to meet their target or they can agree joint projects which involves identifying specific projects for the purpose of renewable trading and agreeing how the projects will be financed and how the renewable value will be counted towards each country’s renewable target under the Directive.
The use of these co-operation mechanisms under the Directive requires formal agreement between two or more Governments. Increased interconnection between the UK and Ireland offers Irish developers the prospect of being able to access a much larger electricity market.
The electricity market in GB is around ten times the scale of the electricity market in Ireland. In the short term there are opportunities for on and offshore wind and biomass projects, but in the medium to longer term as technologies mature and become commercially deployable, there will also be opportunities for wave and tidal developers. The volume of such trade that may develop over time depends on the ability of developers to successfully bring their projects through planning stages and achieve market access for their projects in the UK market.
There are currently a number of potential project developers that have expressed interest in renewable export. I have had a number of bilateral discussions with my UK counterpart in this regard and my officials are actively exploring the possibility of trade in renewable energy between the two jurisdictions, with a view to reaching a Memorandum of Understanding by end year. If the Irish Government decides to enter an Inter-Governmental agreement under the Directive with the UK or another Government, it will have to ensure sufficient return and benefits to the state from such projects. This would likely include either a share of the renewable value or the imposition of a royalty of some type.
