Understanding Renewable Energy - FAQ's
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)
- biomass (wood, waste, energy
crops)
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What are the benefits of
renewable energy?
Renewable energy resources
are clean sources of energy. They can be harnessed
without damaging the environment, unlike using fossil
fuels which release carbon dioxide (a greenhouse gas)
and other harmful pollutants into the atmosphere.
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.
Renewable energy resources are
indigenous resources. Ireland is heavily reliant on
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. By increasing
our use of renewable resources, we can achieve a more
secure and stable energy supply for the long term.
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Renewable energy is a supply-side
solution for a sustainable energy economy.
Renewable energy measures promote
sustainability by increasing the supply of energy from
sustainable sources.
Energy efficiency measures
promote sustainability by reducing demand for and
consumption of energy.
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There are a number of options
available to homeowners wishing to go the renewable route.
Currently there are grants available for domestic users
who wish to install solar panels, wood pellet stoves /
boilers, and heat pumps. Information relating to these
grants can be found on the
www.sei.ie/greenerhomes
or call 1850 734 734 for further details.
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Yes. Ireland receives enough
solar energy to allow a correctly sized solar panel system
to provide an annual average of 60% of a building's hot
water requirements (the figure will be higher in summer
and lower in winter).
Clean renewable heat energy for
buildings of all sizes can also be obtained using passive
solar design, heat pumps and wood fuel.
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Various sources of support are
available for project development and
research/demonstration projects. Information is available
in the Reference Section.
The Greener Homes Scheme provides
assistance to homeowners who intend to purchase a new
renewable energy heating system for either new or existing
homes. The scheme is administered by Sustainable Energy
Ireland and aims to increase the use of renewable energy
and sustainable energy technologies in Irish homes over
the next 5 years. Go to www.sei.ie/greenerhomes
for more information about how to apply for a grant for
installing renewable energy in your home.
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In Irish conditions a 1 MW wind
turbine or hydro plant could provide over 3 million units
of electricity - enough for around 650 homes. A 1 MW wood
or waste biomass plant could provide over 6 million units
of electricity - enough for around 1,300 homes. The
average Irish home uses about 4,600 kWh of electricity per
year.
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There are a number of routes for
selling electricity generated from renewables:
- Projects successful in AER
competition are awarded an ESB power purchase
agreements. Government supported Alternative Energy
Requirement (AER) competitions have run since 1994.
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.
- 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 bid
in the relevant category of the preceding AER
competition. This continues the support offered to
successful Thermie projects under the previous framework
programme.
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AER contract prices
(Please note our current pence (p) converts to cent (c) in
Euros)
Unit prices awarded under AER
have fallen since the first competition in 1994 -
testimony to the competitive nature of the process.
- In AER 1 (1994) successful
projects were awarded contracts at 5c/KWh (4p/kWh).
- In AER 3 (1998) price ranges
of successful projects were as follows (Euro per kWh):
biomass/waste: 3.17 c (2.5p) -5c (3.94p), hydro: 4.41c
(3.48p) - 4.95c (3.9p), large wind: 2.80c (2.21p) -
3.54c (2.79p), small wind: 3.49c(2.75p) - 4.06c (3.2p)
(weighted average: 2.748).
Direct to customer prices
Following the opening of the
electricity market for renewable energy in February 2000,
renewable energy companies are entitled to sell
electricity to any customer at mutually agreed prices.
Average ex-tax revenues per kWh are 5.30c (4.18p) from all
high voltage consumers (all industrial sectors) and 12.69c
(7.7p) from all low voltage consumers (households).
ESB default price
Prices paid to renewable
suppliers who do not have AER or Thermie power purchase
agreements are based on ESB's 'avoidable fuel price',
currently around 2.15c (1.7p) - 2.41c (1.9p) per kWh. This
option is therefore only suitable to provide a bonus
income for projects where the main objective is
self-supply.
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