The Government's new support price structure for bio-energy - the use of natural materials for the production of electricity - has been announced.
The guaranteed support price (REFIT) will range from 15 cent per kilowatt hour to 8.5 cent an hour depending on the technology deployed.
The technologies supported include Anaerobic Digestion Combined Heat and Power, Biomass Combined Heat and Power and Biomass Combustion, including provision for 30% co-firing of biomass in the three peat powered stations.
It is hoped the new structure will help the development of a sustainable biomass supply sector and drive demand for biomass.
Minister for Energy Eamon Ryan said he has always maintained that Irish farmers could be at the forefront of the green economy and the fight against climate change.
He said this new Government support price has the potential to contribute to economic recovery in rural Ireland as well as reducing our overall national dependence on imported fossil fuels.
However, the Minister said that in many ways this is only the start of work to progress bio-energy in Ireland.
IFA Alternative Land Use Chairman JJ Kavanagh has welcomed the announcement, but said growers will be disappointed that the prices announced are not sufficient to stimulate the bioenergy market.
He said, 'this is a much-needed first step towards building Ireland's bioenergy economy.
'The energy crop REFIT tariff will provide a market for miscanthus and enable farmers to compete in the market place.
'However, the rate will not be enough to stimulate real growth in the market and attract farmers into bioenergy production at the scale required.'
JJ Kavanagh said Minister Ryan must ensure that the support prices announced today come into effect as soon as possible as growers are anxious to move into the new market arrangements without delay.
