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Wood Energy Fueling the Western Region Bernadette Phelan 5 th June 2008

Wood Energy Fueling the Western Region Bernadette Phelan 5 th June 2008. Outline. Western Development Commission (WDC) Bioenergy - Opportunity for Western Region WDC Wood Energy Development Project: Phase 1 - Research (complete) Phase 2 - Regional Strategy (complete)

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Wood Energy Fueling the Western Region Bernadette Phelan 5 th June 2008

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  1. Wood Energy Fueling the Western RegionBernadette Phelan5th June 2008

  2. Outline • Western Development Commission (WDC) • Bioenergy - Opportunity for Western Region • WDC Wood Energy Development Project: • Phase 1 - Research (complete) • Phase 2 - Regional Strategy (complete) • Phase 3 - Implement Action Plan (08 +)

  3. About us • Seven county region • State body • WDC Act 1998 • Department of Community, Rural and Gaeltacht Affairs • Strategic remit • 12 member board • 15 staff

  4. Strategic Goals Contribute to Western Region’s economic development by engaging with the national policy making process Promote the benefits of living, working and doing business in the Western Region Support the sustainable economic and social development of the rural economy Provide risk capital to SMEs and Social Enterprises

  5. Development Remit • WDC role: • Policy analysis and development • Facilitator in the development process • Experience of strategic regional development projects WDC Dual Functions of i) Policy and ii) Practice

  6. Bioenergy – Opportunity for Western Region? • Policy Drivers: • National White Paper on Energy (2007) • National Bioenergy Action Plan • Economic benefits of growth: • Displace imported oil • Increase renewable energy use • CO2 emissions savings • Profits retained locally • Job and capital intensive (supply chain)

  7. Defining the Opportunity • Fuel Resources: • Biodegradable wastes - forestry, agriculture, etc • Energy crops- SRC, miscanthus, rape seed etc • Wood energy a key resource: • Region has 41% of afforested land in the state • Much forestry at first thinning stage • Market in local heat demand • Already underway – Dare to Grow, Clare Wood Energy Project, Donegal Forest Link, private sector growth

  8. Challenges to development • Key issues: • Policy framework – joined up thinking across 5 Depts • Simultaneously increase deployment: • Supply – fuel chain, installers • Demand – portfolio of users from large CHP, to medium scale, small scale domestic

  9. How to move forward? • Design project to: • complement and add-value to current initiatives • allow co-ordinated, strategic development • Project Phases: • Phase 1 - Research and Consultation (Partners) • Phase 2 - Regional Development Strategy • Phase 3 - Deliver action plan and feedback to national policy makers

  10. Phase 1: Research and Consultation • Regional Wood Energy Advisory Group (Aug ‘06) • Members: SEI, Teagasc, LEADER, Údarás na Gaeltachta,Energy Agencies, Sligo IT, Dept of CRGA, Dept of CENR, Dept of Ag and Food, Donegal Co. Co., IFA, private companies (3) • Bring stakeholders together • Advise and guide WDC • Facilitate action plan delivery

  11. Phase 1: Research and Consultation • Wood Energy Development in the Western Region (Feb 07) • Across EU largest wood energy market is heat • Wood is central to RE strategy in countries with high levels • Sustainable supply of wood fuel from private forestry • Significant market potential (oil conversions) • Fuel producer and end-user can secure viable price • Commercial markets: i) CHP, ii) Co-firing, iii) Wood heating • Target large / medium wood heat market (hotels, care homes, hospitals, leisure centres etc)

  12. Phase 1: Recommendations • Wood heat market – Why? • Major economic benefits from modest growth • Supply local heat market (role for public sector) • Build market awareness and confidence • Regional Wood Energy Strategy – Why? • Provide roadmap for region • Co-ordinate actions and partners • Address barriers at regional level • SEI grant support

  13. Phase 2: Strategy and Action Plan • Strategy completed Dec ’07 • 2020 target is c. 11% of region’s heat market: • 477MW (402MW heat, 75MW CHP) • 471,600 tns pa from private forestry (m.c. 50%) • Economic Impact by 2020: • Create 900 jobs in rural areas • Increase Gross Value Added by €15m p.a. • Generate CO2 savings of 619,000 tn p.a. (approx €7m)

  14. Phase 2: Action Plan • Key Principles: i) Partnership, ii) Supply Chain Approach • Get the message across: • Information, training, expertise • Grow the market: • Increase uptake • Develop wood supply chain: • Resource assessment, local supply chains • Supportive policy, finance and regulation: • Policy development, Co. Co., monitoring

  15. Phase 3: Deliver Action Plan • WDC leading delivery • Current actions: • Community enterprise models (Údarás na Gaeltachta) • Guide for County Councils (Donegal C&E) • Review CHP market potential • Core project funding: • Discussions with DCENR, Forest Service, SEI, DCRGA • Member of National Bioenergy Working Group

  16. To conclude • Renewables present rural communities with opportunities for economic/social development • WDC lead regional strategy supported by partners • Promote enterprise creation and investment • Partnership central to success • Link policy and practice

  17. Thank You Contact: Bernadette Phelan Development Executive Dillion House Ballaghaderreen Co. Roscommon E: bernadettephelan@wdc.ie T: 094 986 1441

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