Minister Dempsey said that the measures he will be introducing early
next year will build on the successful measures he has already introduced
in the electricity sector and ensure that the heat and transport sectors
use renewable technologies to become more energy efficient. As well as
welcoming the Bioenergy measures, Minister Dempsey welcomes the extension
of VRT relief for flexible fuel vehicles. “I am determined that energy
will play its full role in ensuring Ireland meets its climate change
obligations and we must ensure that all energy consumers adopt a more
sustainable approach and use energy more efficiently. It is important that
we move beyond the research and development stage in renewable
technologies and take a more positive deployment approach going
forward”.
The initiatives announced today will also further enhance the ongoing
programme of cooperation with Northern Ireland in the sustainable and
renewable energy areas. North and South are in agreement on the need to
respond collectively to the common economic and environmental challenges
facing the island of Ireland and an open debate is taking place on how to
plan for sustainable energy supplies through 2020 and beyond.
Enhancing the sustainability of the energy system on the island of
Ireland requires a programme to progressively reduce dependence on fossil
fuels by making a decisive switch to alternative sources, particularly
renewables, and providing a significant boost for energy efficiency and
conservation.
The programme will also provide much-needed support to the rural based
agriculture, forestry and renewable technology sectors. “By lowering the
cost to consumers, renewable energy technologies and cleaner fuels will be
able to compete with more traditional fossil fuels.” Minister Dempsey
said.
Minister Dempsey said “This programme will provide an affordable
means for householders, business and consumers to counteract spiralling
energy costs. It will also stimulate awareness of the need for sustainable
energy practices in the home, in business and in transport and will assist
in developing the market for domestic renewable technologies, which have
not been in a position to compete on a level playing field with fossil
fuels.”
Minister Dempsey said that he would now be developing a suite of
measures to deliver on the programmes, with a view to launching a multi
annual comprehensive package early in the New Year.
Biofuels
Biofuels are renewable transport fuels, which have significantly less
CO2 emissions than their fossil fuel equivalents. Biofuels are
produced from biodegradable organic materials such as oil seed rape, sugar
beet, wheat, animal fat products and waste vegetable oil. They can be
blended with, or substituted for diesel or petrol fuels. Biofuels are
typically available in three principal forms: biodiesel which is made from
oil seed rape or recovered vegetable oil and blended with fossil diesel,
bio-ethanol which is made from sugar, wheat or dairy by-products and
blended with petrol, and pure plant oil, which is used in modified diesel
engines.
In 2005, the Minister for Communications, Marine and Natural Resources
launched a pilot biofuels Mineral Oil Tax Relief scheme. Eight biofuels
projects have been awarded excise relief under the scheme and it is
anticipated that this will lead to 16m litres of biofuels being placed on
the Irish market over a two-year period. Biodiesel, bioethanol and pure
plant oil are being produced under the scheme. There was a significant
level of interest in the scheme and the Minister for Finance has now
agreed in the Budget, to an up-scaling of the scheme, over a period of
five years.
Under the expanded programme, €205m in excise forgone will be allowed
for biofuels projects, between 2006 and 2010. A programme for delivery
will now be developed between both Departments and will require State Aids
approval from the EU Commission. It is expected that the programme will
result in Ireland achieving 2% market penetration of biofuels by 2008, and
will result in the reduction of over a quarter of a million tonnes of CO2
annually. This equates to taking 76,000 cars off the road annually.
Further details will be announced in the context of the Finance Bill
The programme also has potential benefits for the agricultural sector.
The feedstock required to meet a 2% market penetration level, would
account for all the energy crops that could be produced in Ireland under
current land-use patterns. It could also provide a market for waste
vegetable oil, from the services sector. It is estimated also that the
programme could result in the creation of hundreds of jobs.
VRT Relief on Flexible Fuel Vehicles
Flexible fuel vehicles can run on higher blend levels of biofuels than
ordinary vehicles without any engine modifications. The extension of VRT
relief to cover flexible fuel vehicles is a welcome initiative which will
provide a significant incentive for the motor industry to introduce
cleaner more environmentally friendly vehicles.
Note from the editor
Now that we have the announcement form the
minister and everybody is getting very excited will see how long it will
take to implement.
Biomass Boilers
Biomass is generally defined as the biodegradable fraction of products,
waste and residues from agriculture, forestry and related industries, and
of industrial and municipal waste.
Biomass boilers provide heat from wood chips or wood pellets, derived
from the forestry sector. Wood chip is currently a waste product in the
forestry sector and can be used directly in larger scale biomass boilers,
or can be processed into pellets for use in small and large-scale central
heating boilers. Wood chip and pellets are environmentally sustainable
waste products, which can be used in specialised central heating systems,
and can be considerably cheaper than their fossil fuel equivalents. The
cost of the boiler equipment and installation has remained prohibitive
however, and the market has not yet developed significantly.
The funding programme planned for biomass boilers will allow industry,
business and the services sector to install heating systems, which have
significantly lower running costs than traditional fossil fuel systems,
and will lead to a significant CO2 savings by Ireland’s commercial and
services sectors. It will also provide significant support for the
forestry sector and assist in the development of a vibrant wood energy
industry in Ireland.
Sustainable Energy Ireland have already provided funding for a limited
number of biomass boilers and a pilot programme for biomass boilers is
currently being rolled out, with a view to developing a larger scale
initiative.
Grants for Householders
The Department of Communications, Marine and Natural Resources
and Sustainable Energy Ireland (SEI) run a number of schemes in support of
grid-connected renewable electricity, medium and large-scale renewable
heat, and renewable energy in clusters of housing developments. While the
SEI House of Tomorrow Programme has resulted in sustainable energy
features being installed in over 2,600 houses, there have been no support
programmes to accommodate individual householders who wish to install
renewable technologies in their homes. The purchase and installation cost
of renewable technologies remain prohibitive for the average householder
and this market has not therefore developed, even though the running costs
for these technologies are substantially cheaper.
The renewable energy funding announced by Minister Cowen today will
include a grant-aid package to encourage individual householders install
renewable energy technologies in their homes.
The programme will be particularly beneficial in areas where
householders are dependent on oil or electricity for their heating needs
and could potentially lead to savings of up to €700 on annual fuel
bills, when combined with other energy efficiency measures.
Combined Heat and Power
Combined Heat and Power (CHP) is the simultaneous generation of useable
heat and electricity in a single process. It makes use of the heat
produced in electricity generation instead of releasing it into the
atmosphere and has a less detrimental effect on the environment than if
heat and power were produced independently. While CHP can run on biomass,
the principal generating fuel is natural gas. It is proposed to include a
measure to encourage the take-up of CHP technologies, in the renewable
energy package announced today.
