Dáil Éireann Debate, Thursday - 18 January 2018
259. Deputy Robert Troy asked the Minister for Communications, Climate Action and Environment the subsidies and timeframe for implementation to incentivise solar farms; and if he will make a statement on the matter. [2564/18]
View answerMy 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) 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 (renewable electricity auctions) 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.
A public consultation on the emerging principles of the proposed RESS closed on 10 November. Over 1,250 submissions were received, which are being reviewed and will inform the final design of the RESS. Following on from this, 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.
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.
