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Alternative Energy Projects.

Dáil Éireann Debate, Tuesday - 10 February 2009

Tuesday, 10 February 2009

Questions (26, 27, 28, 29, 30)

Jimmy Deenihan

Question:

83 Deputy Jimmy Deenihan asked the Minister for Communications, Energy and Natural Resources the progress made regarding net meters across the country; and if he will make a statement on the matter. [4621/09]

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Martin Ferris

Question:

85 Deputy Martin Ferris asked the Minister for Communications, Energy and Natural Resources his views on the proposal from a group (details supplied) for locally dispersed wind energy schemes. [3490/09]

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Deirdre Clune

Question:

89 Deputy Deirdre Clune asked the Minister for Communications, Energy and Natural Resources the action he is taking to promote the decentralisation of power through encouraging microgeneration at a domestic and business level. [4613/09]

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P. J. Sheehan

Question:

93 Deputy P. J. Sheehan asked the Minister for Communications, Energy and Natural Resources when a feed-in tariff will be available; and the pricing level at which domestic microgeneration units can sell power back into the grid. [4624/09]

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Joan Burton

Question:

105 Deputy Joan Burton asked the Minister for Communications, Energy and Natural Resources the position regarding the creation of a tariff that would allow microgeneration facilities in homes and businesses to sell power back onto the grid; when a conclusion to this matter will be finalised; and if he will make a statement on the matter. [4561/09]

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Written answers

I propose to take Questions Nos. 83, 85, 89, 93 and 105 together.

Net-metering enables the use of small scale renewable energy projects for domestic households. It allows the export of electricity back to the grid, reversing the electricity meter in the process. The result is to offset the cost of electricity bought by the householder.

The standard electricity meter installed by ESB Networks in the past does not operate in reverse and cannot therefore support a net-metering programme. My Department is working with Sustainable Energy Ireland (SEI), ESB and the Commission for Energy Regulation (CER) to bring forward alternative ways of encouraging the use of micro-scale renewable energy technologies.

An alternative approach is to provide a guaranteed price for electricity exported to the grid from micro-scale projects. The REFIT support scheme, which is administered by my Department, provides fixed prices for electricity from new renewable energy powered plants. However, generators must source and contract with an electricity supplier such as ESB or Viridian to purchase the power. The supplier in turn is compensated at pre-set fixed levels for the additional costs they incur in purchasing and trading the electricity.

The commercial interest of Electricity suppliers is in purchasing power from larger scale projects producing electricity in commercial quantities only. Micro-scale plants are of a much smaller size requiring a different solution.

My Department is currently working closely with the CER and other stakeholders to put in place in the short term an appropriately structured payment system for micro-generated electricity exported to the grid, which will operate separately from the REFIT mechanism.

SEI is also implementing a Micro-generation Pilot Programme, involving research and field trials, including support for between 50 and 60 installations on a pilot basis of micro-scale projects. The field trials will address a range of issues including grid connection and technical standards to ensure the power security, safety and quality of installations.

The CER and ESB Networks have amended the rules for the connection of micro-scale plants to the grid. Generators of less than 6kW on single phase cables and 11kW on three phase electricity supply cables may now connect to the grid without prior authorisation.

The rollout of a national smart meter programme is progressing in line with the commitment in the Government's Energy Policy Framework and in the Programme for Government. The Smart Meter programme is a central component of the strategy to significantly enhance management of energy demand and to achieve greater energy efficiency through the use of cutting-edge technology. Testing the capability of advanced meters to distinguish between the import and export of electricity will also form a key part of the technology trial. This will facilitate the development of micro-generation where consumers generate their own electricity and sell their surplus back to the grid.

Following these changes, SEI is publishing a guide to connecting renewable and CHP electricity production plants to the electricity network. This includes advice for micro-generators, which will be of assistance to those connecting micro scale plant to the network.

In addition, revised planning guidelines from my colleague the Minister for the Environment, Heritage and Local Government, establishes an exemption from planning consent requirements for domestic-scale projects of suitable heights.

Following completion of the work to which I have referred, I expect to announce the detailed arrangements, including the proposed payment system for micro-scale projects in the coming weeks.

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