According to the latest projections by the Sustainable Energy Authority of Ireland, 30.1% of our electricity came from renewable sources in 2017 and Ireland is expected to achieve over 80% of its 16% renewable energy target by 2020.
The Renewable Energy Feed-in Tariff (REFIT) schemes, which are funded by a public service obligation levy on all electricity consumers, were designed to provide financial certainty to renewable electricity generators to help meet Ireland’s binding EU 2020 renewable energy targets. The Schemes have in-built deadlines designed to incentivise projects to become operational and maximise their contribution to meeting Ireland’s 2020 renewable energy targets, in accordance with the methodology set out in the Renewable Energy Directive (2009/28/EC).
A number of extensions to both the REFIT 2 and REFIT 3 deadlines have already been granted in recent years, in particular to facilitate significant volumes of projects that were facing technology specific delays in the planning and connection processes and meeting the financing timeframes originally set out in the REFIT terms and conditions. The Department is working closely with ESB Networks, EirGrid and the Commission for Regulation of Utilities to ensure that renewable electricity projects are connected as soon as possible to the electricity grid and that the current deadlines are met in order to maximise their contribution to the 2020 target.
Looking ahead, the policy focus is moving to a competitive framework for the support of renewable electricity projects, which are anchored in robust community engagement as set out in the high level design of the Renewable Electricity Support Scheme (RESS). The RESS high level design was approved by Government in July 2018 and it is expected that the first renewable electricity auctions will take place in 2019. The RESS has been designed to deliver Ireland’s contribution towards an EU-wide renewable energy target of 32% out to 2030, within a competitive, auction-based, cost effective framework and underpinned by strong community participation requirements.
The role of government is not to crowd out private sector investment through extending subsidy schemes. Corporate contracting of renewable energy is becoming an increasing feature of the global energy transformation, harnessing the capital that large demand users can bring to bear on the sector and driving down consumer costs. I would like to see corporate power purchase agreements start to take off in Ireland, contributing to our 2020 and 2030 renewable targets and delivering value for money to consumers.
A request for a grace period under the REFIT 2 scheme is currently being examined by my officials, taking into account the available evidence and impacts and the issues I have outlined above, and will then be submitted to me for decision.