Electricity Generation

Dáil Éireann Debate, Wednesday - 17 July 2013

Wednesday, 17 July 2013

Ceisteanna (3)

Thomas Pringle

Ceist:

3. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources his plans to tackle the issue of peat fired power stations in the context of the sectoral emissions reduction plan required of his Department; if it is his intention to refocus the industry toward renewables in a specific timeframe as part of the plans; his further plans to review the public service obligation levy in respect of same; and if he will make a statement on the matter. [35699/13]

Freagraí ó Béal (5 píosaí cainte)

Deputy Pat Rabbitte

The public service obligation, PSO, levy has been in place since 2001. It is the overall support mechanism for peat generation for certain conventional means of generation constructed for security of supply purposes and for the development of renewable electricity. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers, including the three peat stations in the State. Peat-fired electricity plants are supported because they contribute to security of supply through the use of indigenous fuels. The peat PSO for the Edenderry plant, which is operated by Bord na Móna, expires in 2015, while those for the two ESB operated plants at Lough Ree and west Offaly will expire in 2019. I have no plans to end the PSO for peat in advance of the dates for their expiry under the European Commission approvals which were received in 2001. The role of peat-fired power stations in the transition to a low-carbon economy will be an important consideration in preparing the low-carbon roadmap. Interested parties will have an opportunity to make contributions in this regard. The three plants are covered by the requirements of the EU emissions trading system, ETS. Their operators are responsible for the management of emissions from the plants and the Environmental Protection Agency is responsible for monitoring emissions in all plants covered by the ETS.

The Government aims to achieve 40% of our electricity requirement from renewable sources by 2020. To this end, my Department is currently supporting renewable electricity generation through the renewable energy feed-in tariff, REFIT, schemes. Energy from wind will continue to be the main source of renewable electricity generation in Ireland. Biomass has a contribution to make in reaching our 2020 and low-carbon targets. In February 2012 I opened the renewable energy feed-in tariff for biomass technologies, REFIT 3, which includes incentives for co-firing of up to 30% biomass in the three peat power plants. This will further diversify the sources of electricity on the system and assist with the decarbonisation of our electricity. However, it is a matter for the generation companies involved as to whether they wish to participate in the scheme.

Deputy Thomas Pringle

The provisions in the REFIT 3 tariff to which the Minister referred are welcome. Could the PSO relating to the peat-fired stations be used to enable them to be converted to burn biomass materials? While this is a small element of the overall electricity generation system, the peat-fired process gives rise to high carbon emissions. Such emissions could be significantly reduced by means of a move to biomass. The Government should adopt a policy aimed at encouraging the move from peat-fired to biomass generation. In view of the recent announcement that Coillte and Bord na Móna will soon be operating under the same umbrella, it is timely that a move away from peat firing should begin now.

Deputy Pat Rabbitte

In view of the dates I outlined in respect of the end of the PSO, I agree with the Deputy that it is time that we should begin to consider this matter. I cannot dispute what he says with regard to efficiency, emissions and so on. However, in addition to what I stated in my original answer, the PSO also applies in order to protect employment. Bord na Móna is a major employer in the midlands and it has 1,500 people on its books at present who are involved in harvesting. Last year Bord na Móna experienced its worst harvest since it was founded and only realised 37% of its target in this regard. As of Monday last, it had realised 100% - 4 million tonnes of peat - of its harvesting target for the current year.

Deputy Pringle is seeking to establish where we go from here. We have raised similar questions with the ESB. As I understand it, converting the plants in question to biomass would prove problematic in the case of two out of the three. The difficulties which arise relate to the age of the plants, the technology on site, adaptability etc. However, the matter is being examined.

Deputy Thomas Pringle

I am not seeking to have an impact on the employment created by Bord na Móna. However, the staff involved could be utilised in the wood biomass sector and the level of employment could actually increase if Bord na Móna makes the move to which I refer. As Bord na Móna and Coillte come closer together, I hope the opportunities which will arise will be availed of and that the level of employment in the forestry sector will increase. This would also feed in to the changeover to biomass in the area of electricity generation.

Deputy Pat Rabbitte

I would be happy to examine that matter. Even if we were to return to Europe in order to obtain approval for a new PSO or for an extension of the current one, the indications are that neither of these might be forthcoming. Edenderry is a co-fired station and could certainly be adapted. However, technical constraints apply in respect of the other two stations. The ESB is currently considering the matter.