The announced measures include biofuels excise relief in the coming five years, costing €200m, and funding for renewable energy schemes costing €65m. This funding consists of state support for wood chip and wood pellet boilers in the business, commercial and service sectors, grants for the domestic sector for installing wood pellet boilers, solar panels or geothermal heat pumps, and grants for the installation of combined heat and power in the industrial, commercial and public sector.

Minister Dempsey said these measures build on the successful measures he already introduced in the electricity sector and will ensure that heat and transport sectors become more energy efficient. Consumers could benefit from the measures too, because state support will lower the cost of renewable energy. This way, clean energy could become an equal competitor to more traditional fossil fuels.

The announced measures will enhance the co-operation with Northern Ireland . North and South both take the view that they need to co-operate to make the whole of Ireland less dependent on fossil fuels by switching to alternative sources. An open debate is taking place on how to plan for sustainable energy supplies through 2020 and beyond.

Minister Dempsey said the measures will be launched early in the New Year.