Dáil Éireann Debate, Tuesday - 28 April 2015
28. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the steps his Department is taking to meet the European Union target of 12% in renewable energy in the heat sector by 2020; the current percentage of renewable heat energy usage; the level of penalties the State faces at this level; the role biofuels can play to bridge the gap; and if he will make a statement on the matter. [16191/15]
View answerThe 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. In 2013, 7.8% of Ireland’s overall energy requirement was met by renewable energy with 5.7% of heat demand being met from renewable sources.
It is expected that most of the 12% renewable heat target will be achieved through the use of biomass technologies. In this regard, the uptake of combined heat and power under REFIT 3, along with the migration by certain heat users to renewable heat in response to market forces, will make a contribution to achieving the target. The requirements of Part L of the Building regulations are also expected to make a contribution to increasing the uptake of renewable heat.
However, progress towards the renewable heat target is proving to be challenging and analysis by the Sustanable Energy Authority of Ireland (SEAI) suggests that in the absence of additional measures a shortfall in the region of 2 to 4 percentage points could emerge in the heat sector. This would represent between 1 and 2 percentage points in terms of the overall renewable energy target. Any shortfall in meeting the 16% target for 2020 would need to be addressed by purchasing "renewable energy credits" from another EU Member State. While the cost of such credits has yet to be established, the SEAI has estimated that it could be in the range of €100 million to €150 million per percentage point shortfall. There could also be penalties associated with any shortfall.
Analysis underpinning the Draft Bioenergy Plan, published in October last year, indicates that an additional bioenergy focussed measure in the heat sector would represent the most cost effective means of meeting a number of different policy goals including reducing the potential shortfall in our renewable heat levels. The draft Plan recommends the introduction of a Renewable Heat Incentive to incentivise larger heat users in the industrial and commercial sector to change to heating solutions that produce heat from renewable sources. A consultation on the development of this scheme will be published by my Department shortly.
