Dáil Éireann Debate, Tuesday - 21 November 2017
56. Deputy John Curran asked the Minister for Communications, Climate Action and Environment the actions he is taking to facilitate the development of solar energy in a well managed and sustainable manner; the timeframe for the introduction of a new renewable electricity support scheme; and if he will make a statement on the matter. [48705/17]
View answer58. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment the action he will take to increase Ireland's renewable energy stock; the date by which a renewable energy support scheme will be launched here; and if he will make a statement on the matter. [49106/17]
View answer64. Deputy Thomas P. Broughan asked the Minister for Communications, Climate Action and Environment if he will report on the renewable electricity support scheme in respect of wind generation and micro-scale generation; and if he will make a statement on the matter. [48979/17]
View answer78. Deputy James Lawless asked the Minister for Communications, Climate Action and Environment if a support scheme for residential and-or community solar photovoltaic electricity will be introduced (details supplied); and if he will make a statement on the matter. [49015/17]
View answerI propose to take Questions Nos. 56, 58, 64 and 78 together.
My Department is developing a new Renewable Electricity Support Scheme (RESS) which will be designed to assist Ireland in meeting its renewable energy contribution to EU-wide targets out to 2030. The design of the new scheme has included an extensive independent economic appraisal. This appraisal compared the cost of supporting a range of commercial renewable technologies, including Solar Photovoltaics (Solar PV) and both onshore and offshore wind, at various scales including micro-generation, to ensure that the new scheme delivers value for money for energy users whilst also delivering on the energy pillars of sustainability and security of supply. The assessment included analysis of the optimum financial support mechanisms for renewable technologies, in line with the 2014 EU State Aid Guidelines.
The 2014 EU State Aid Guidelines set the framework and extent of financial support options for national renewable electricity (RES-E) support schemes. In general and except for small scale and demonstration projects, RES-E support levels must be set through competitive bidding processes and all new RES-E schemes should provide support in the form of a premium in addition to the market price. This support mechanism is very different to current schemes in place in Ireland where all renewable electricity generators within specific sectors get a fixed price for the electricity they export to the national grid. In designing the new RESS, the cost implications for people and businesses have been a high priority and I will ensure that the new scheme is designed in a cost efficient manner.
The analysis also assessed a range of renewable electricity penetration ambitions, informed by Eirgrid’s 2017 Generation Capacity Statement, to measure their impact on cost and their likely technological composition.
A cornerstone of the new scheme will be the provision of pathways for increased community ownership and participation in and benefit from renewable electricity projects in line with the 2015 Energy White Paper commitments. Communities are effectively being designed into the fabric of the new scheme and a comprehensive assessment of polices and support measures to increase community ownership from renewable electricity projects has been undertaken. The most effective policies to increase community ownership and participation in renewable electricity projects have been examined within an Irish context. Examples include a mandatory requirement for all projects supported under RESS to offer ownership or investment opportunities to the local population, facilitating grid access for community-led renewable projects, ring fencing dedicated capacity for community-led projects and putting in place structures which will support community groups overcome legal, financial and technical barriers to renewable electricity generation. Furthermore, the Government recognizes that Solar PV has the potential to contribute to meeting Ireland’s renewable energy and climate change objectives and could also provide a community dividend, thereby enhancing citizen participation in Ireland's energy future.
Micro generation, which typically involves an element of self-consumption and the selling of excess electricity to the grid, was also appraised as part of the RESS economic assessment. The analysis identified a number of challenges that may need to be addressed before a support scheme for micro generation can be developed. These include a reform of network charges, an assessment of the distributional impact of such a policy decision on the PSO (cost burden sharing), and development of a fair tariff for exported electricity taking the benefits of self-consumption into account. This approach is in line with experience from other EU member states who have attempted to introduce supports for micro generation.
I am committed to further exploring opportunities for supporting micro generation, as I believe that micro-generation could have an important role in Ireland’s transition to a carbon free economy, in assisting Ireland meet its renewable electricity targets, and increasing social acceptance of and promoting renewable energy projects right across the country. My Department and SEAI hosted a workshop on micro generation last month and will develop a policy position on how best to support micro generation and micro generators in Ireland.
A public consultation on the emerging principles of the proposed RESS closed on 10 November. Over 1,250 submissions were received and these will now be reviewed and considered and will inform the final design of the RESS. Following on from this public consultation and review, a final proposal will be brought to Government for approval in early 2018, including the overall costs and technologies to be supported. Subsequent to a Government decision, a formal application for State Aid clearance from the European Commission will commence.
The Economic Report to underpin the design of the new scheme (assessing a range of renewable technologies at different scales and against a range of sensitivities e.g. renewable ambitions) and the Community Report, which identifies and assesses renewable electricity community policies and measures, were published as part of the public consultation process and are available on my Department’s website at www.dccae.ie.
At this point no final decisions have been made as regards which technologies will be supported under the new RESS. I welcome and have noted with interest the falling costs of some renewable technologies over the past year, most notably Solar PV and offshore wind. Increasing renewable technology diversity is one of several policy objectives the new RESS is trying to deliver and falling technology costs may lead to increased diversity of the renewable portfolio over the medium term.
