Geo-thermal plan ‘under threat’ - claim

The Department of Enterprise is planning to introduce a £25m incentive scheme for renewable energy next year but it has an obligation under statute not to “impact on the existing or future gas market”.

Ballymena council has called on it not to preclude the development of geothermal energy in the town.

Sinn Féin MLA and deputy chair of the enterprise committee, Daithí McKay has, however, said that such energy policies “will hinder opportunities for people in Ballymena to avail of cheaper energy” and stated that the statute must be reviewed.

Mr McKay was referring to the Department of Enterprise, Trade and Investment’s draft Renewable Heat Incentive which is to invest heavily in the renewable heat market over the next four years.

Mr McKay said: “The Department wants the Renewable Heat Incentive to focus on areas that are not on the gas network so that clearly disadvantages geothermal in Ballymena.

“This geothermal project has huge potential for Ballymena but it is clearly in jeopardy as a result of the department’s energy policy which is not to “impact on the existing or future gas market”. These contradictions need addressed as the loss of this opportunity will clearly have a huge effect on people and businesses alike in this area.

“Energy policy needs to be consistent and one particular source of energy should not be protected to the detriment of others, especially when the alternatives are indigenous and cheaper as opposed to an imported and more expensive source.”

Mr McKay pointed out: “Geothermal energy is clean renewable energy and has the potential to heat homes and businesses in this town for a much reduced consumer cost in comparison to finite fuels such as oil and gas.

“Geothermal is a sustainable energy source generated from the heat in the earth’s core and Ballymena is one of the best sites on this island to develop this. This could be used to heat homes in Ballymena, including social housing, would reduce energy costs and the council are keen to progress this. This will reduce fuel bills and fuel poverty levels, bring down overheads for business and also attract investment as energy costs continue to be a key consideration for major companies. It will also create jobs in the town”

Mr McKay added: “The Enterprise Committee has seen consultation responses which have been received in response to the draft Renewable Heat Incentive proposals and respondents were positive about the potential of Deep geothermal and said that the exclusion of geothermal should be reconsidered by the Department”.

The Department has said the concerns are unfounded and that it is committed to both incentivising the renewable heat market and extending the natural gas network.

A spokesperson said: “DETI would not agree with the view that there is a ‘disincentive’ towards the development of renewable energy. The RHI represents a long term commitment towards the renewable heat industry. With funding of £25m available over the next 4 years, this is a very considerable level of support.

“As the RHI proposals stand, a large scale deep geothermal energy project would receive a tariff under the RHI scheme for any renewable heat generated. This tariff would be the same whether oil or gas was being displaced.

“DETI is committed to both incentivising the renewable heat market and extending the natural gas network in order to develop a sustainable, secure, diverse and competitive heat market.

“At this stage the RHI proposals are not yet finalised and further analysis is being carried out before a final scheme is launched”.

Meanwhile, Environment Minister Alex Attwood has said he will speak with executive ministers to clarify the use of geothermal technology in Northern Ireland.