Energy policy:Minister for Finance Brian Cowen said better energy efficiency and demand management initiatives will pay significant dividends for business.
Sustainable Energy Ireland is to receive an extra €3 million in 2007 to develop pilot programmes to support small and medium enterprises that want to assess their energy usage and enhance energy efficiency. The impact of the pilot schemes will be reviewed during 2007.
Mr Cowen said he is to renew for another year the tax incentive scheme for renewable energy use, which was to end this year.
The scheme provides for the deduction from a company's taxes of corporate investment in renewable energy products in the solar, wind, hydro or biomass technology categories.
He said he was also extending the bio-heat scheme, which grant-aided measures such as wood pellet burners, to cover other technologies such as solar panels.
The measures were welcomed by John Mullins, chief executive of the bio-energy division of NTR, Bioverda.
"Bioverda broadly welcomes the increased support for the bio-fuels sector announced in today's Budget. In particular we welcome the continuation, for a further five years, of the corporation tax incentives for companies involved in renewable energy.
"This, along with the incentives announced in the bio-fuels supply chain, should serve to assist with continued investment in the sector. The measures announced should serve to assist, in the medium to long term, in developing a real alternative in Ireland to existing fossil fuels."
