The share of renewable energy in the heating sector in Ireland has risen from 2.4% in 2000 to 6.9% in 2017. Ireland has a binding EU target of 12% by 2020. The 2019 Climate Action Plan recognises the need to lift our ambition in regards to the use of renewable energy. The Plan contains a range of actions across different sectors of society in relation to the use of renewable energy, together with clear timelines for completion. The Support Scheme for Renewable Heat has been developed to financially support the adoption of renewable heating systems by commercial, industrial, agricultural, district heating and other non-domestic heat users not covered by the EU Emissions Trading System.The first phase of the scheme, an installation grant for heat pumps, opened for applications in September 2018. Following EU State aid approval, the second phase of the scheme, an operational support for biomass boilers and anaerobic digestion heating systems, opened for applications in June of this year. Under this phase of the scheme, eligible renewable energy technologies will be supported through a multi-annual payment, for a period of up to 15 years, on the basis of prescribed tariffs. Under Project Ireland 2040, the National Development Plan sets out an allocation of €300 million for the roll-out of the scheme for the period up to 2027. A capital allocation of €5 million was provided for the Support Scheme for Renewable Heat in 2019. As part of Budget 2020, a similar allocation of €5 million has been allocated for 2020.
Applications received are evaluated by SEAI, who administer the Support Scheme for Renewable Heat. To date a total of 53 applications have been received by SEAI. These are broken down as follows: Cork 10, Monaghan 7, Mayo 6, Tipperary 4, Waterford 3 Limerick 3 Donegal 3, Cavan 3, Laois 2 and 1 each for Dublin, Clare, Offaly, Wexford, Sligo, Westmeath, Kilkenny, Meath, Carlow, Kerry, Wicklow and Kildare.
Prior to any projects being formally approved under the second phase of the scheme, an Annual Budget Cap must be set by me with the agreement of the Minister for Public Expenditure and Reform. This is a financial safeguard that was included in the Government decision approving the scheme. It places an overall limit on the State's annual expenditure in any given year and is one of a number of measures put in place based on lessons learned from similar schemes in other jurisdictions. Following Budget 2020, the Annual Budget Cap was set at €5 million.
The first Letters of Offer under the second phase of the scheme were issued, by SEAI, on 16 October. The process of evaluating and approving applications is now underway and I expect further Letters of Offer to issue from SEAI going forward.
