Delays in delivery of REFIT energy scheme holds up bioenergy sector

DELAYS in the delivery of the long-promised REFIT energy scheme is holding up the development of an industry which could create thousands of rural jobs.

IFA bioenergy executive secretary Geraldine O’Sullivan said some farmers began investing in this area as early as 2007, when supports for crop-fuelled electricity generation were first detailed in a Government white paper. Farmers were told of the scheme’s formal launch in May 2010, but they are still awaiting the rollout of the scheme.

Geraldine O’Sullivan said: “The IFA has talked with the farmers who have planted on foot of this promised scheme. There are now 4,000 hectares of bioenergy crops in the ground. We wanted a 16c tariff minimum, with 18c for anaerobic digestion. We will be lobbying the incoming Government for a higher rate.

“This has been going on a long time, and it’s still just in a draft format. The earliest we can expect any news now is mid-April. This waiting is stifling the whole sector. Of all the alternative energies, bioenergy offers the greatest job creating potential for rural communities.”

The proposed bioenergy plants would create renewable energy from on-farm projects using chicken litter and other waste. Germany gives farmers a bonus if they use agri crops in preference to other fuels. The IFA also notes that other EU members states have begun with a higher rate REFIT tariff, gradually reducing the rate once the scheme is up and running.

“The rest of Europe started with a feed-in tariff to stimulate interest,” said the IFA bioenergy expert. “I can’t see why the Commission would have an issue with this form of stimulus. There are farmers with timber and crops in the ground. There are others waiting to plant, but they don’t have any confidence in the sector. The Government is dragging its heels on implementing this policy, and it is stopping people from investing.”

Irish sources blame the delays on the European Commission. The bioenergy group IrBEA REFIT & Grid Connection Group has said the Department of Communications, Energy and Natural Resources (DECN) applied to the Commission for state aid approval on November 3. The Commission replied with a number of questions on December 22.

The Commission also recently told Fine Gael MEP Mairead McGuinness that it had not received a formal application in regard to the REFIT scheme, but said that informal requests had been made. We understand that DECN disputes this view, but it was not in a position to comment yesterday. Coillte said that it strongly supported of the REFIT supports for CHP biomass energy.