Mayo Energy Agency

Renewable Energy: General


Question: What is renewable energy?

Answer: Renewable energy comes from energy resources that are continuously replenished through the cycles of nature. Unlike fossil fuels, their supply will never become exhausted.The main sources of renewable energy are the sun (solar energy), the wind, moving water (hydropower, wave and tidal energy), heat below the surface of the earth (geothermal energy) and biomass (wood, waste, energy crops).

Question: What are the benefits of renewable energy?

Answer:

  • Renewable energy resources are clean sources of energy.Whereas using fossil fuels releases carbon dioxide (a greenhouse gas) and other harmful pollutants, renewable energy resources can be harnessed without damaging the environment. Increasing the use of renewable energy is therefore a key strategy for reducing greenhouse gas emissions and meeting Ireland's Kyoto commitments.
  • Renewable energy resources will not become exhausted.Unlike finite fossil fuels, renewable energy resources are continuously replenished and will not run out. By increasing our use of these resources, we can achieve a more secure and stable energy supply for the long term.
  • Renewable energy resources are indigenous resources.Ireland is heavily reliant of imported fossil fuels. We now import around 85% of the fuels we need for energy. By tapping the renewable energy resources with which Ireland is richly endowed, we could reduce this reliance on imports.
  • Renewable energy projects can bring investment and jobs.Renewable energy development can bring new jobs and wealth into the economy. There are direct employment opportunities in every stage of development from research through to the manufacturing, installation, construction, operation and maintenance phases. These opportunities frequently occur in rural and underdeveloped areas where jobs are needed most.
  • Renewable energy technologies offer sustainable waste management solutions.Various waste-to-energy technologies offer sustainable treatments for domestic, agricultural and industrial wastes that reduce the environmental impacts of wastes as well as producing cheap energy. These provide means of meeting increasingly stringent environmental protection regulations.
  • Renewable energy resources can provide alternative rural incomes.Some renewable energy projects offer profitable alternatives to traditional agricultural land use. Farmers can earn income by leasing land for wind power development. Wood and rape-seed could be cultivated as energy crops.
  • Renewable energy can reduce energy costs for homes and buildings.Homes, offices and other buildings can achieve lower energy costs and increased comfort by using renewable energy to provide heat, light and even electricity. Passive solar design, heat pumps, solar panels and wood fuel can provide cost-effective energy for buildings of all sizes.

    Question: How can I sell electricity generated from renewables?

    Answer:

    There are five routes for selling electricity generated from renewables:

    1. Projects successful in AER competition are awarded power purchase agreements with ESB
    Government supported Alternative Energy Requirement (AER) competitions have run since 1994. The AER programme operates as a competitive process. Following a call for tenders, competitors are assessed on the bid price per unit of electricity. Successful competitors are offered an ESB power purchase agreement of up to fifteen years.

    2. Projects supported under EU RTD programme are awarded power purchase agreements with ESB

    Projects successful under the EU Fifth Framework programme (Energie) are guaranteed access to the electricity network. The price offered in the power purchase agreement will be the average of the prices bide in the relevant category of the preceding AER competition. This continues the support offered to successful Thermie projects under the previous framework programme.

    3. Sell direct to customers

    The Electricity Regulation Bill, enacted in July 1999, includes provision for electricity generated from renewables to be sold direct to any customer from February 2000. A renewable energy company could therefore sell to businesses, local authorities, individuals, or any other customer in the State at mutually agreed prices. (Approval of key elements of the new regime, including use of system charges, is a function of the Commission for Electricity Regulation.)

    Renewable energy generators, especially those using intermittent resources such as wind, need electricity trading arrangements to allow them to adjust for short falls or surpluses in their output. A transitional electricity trading system has been proposed under which the independent sector will be able to purchase power shortfalls ('top-up') from and sell power surpluses ('spill') to ESB. For more information see the Department of Public Enterprise press release (24th June: O' Rourke Announces Details of Proposals for Interim Electricity Trading Arrangements. http://www.irlgov.ie/tec/press/press.htm)

    4. Sell to ESB

    To date, it has been possible for to negotiate individual contracts to sell electricity to ESB even where AER or Thermie power purchase agreements have not been awarded. However, since the launch of AER in 1994, unit prices paid in these cases have been very low as they are based on ESB's 'avoidable fuel price', currently about 1.7-1.9 pence per kWh. This option is therefore only suitable to provide a bonus income for projects where the main objective is self-supply.

    5. Use it yourself

    Of course, individuals, businesses and communities can benefit from renewable energy simply by generating energy for their own use - to reduce heat or electricity bills.

    Question: Isn't it cheaper to save electricity?

    Answer: It is cheaper to save electricity than to generate it, by whatever method. The latest information on how much it costs to save electricity is available from the Energy Savings Trust. In their Energy Efficiency Standards of Performance Review, they cited the cost of energy efficiency measures as costing around 1.3 pence per kilowatt hour (per unit). The cost of wind energy is currently around 2.4 pence per unit.

    If you have any queries or suggestions, please contact us at:

    Mayo Energy Agency Ltd
    Arran Place
    Ballina
    Co. Mayo
    Phone: (096) 76113
    Fax: (096) 76199
    Email: MayoEnergy@eircom.net