Dáil Éireann Debate, Tuesday - 22 September 2020
64. Deputy Darren O'Rourke asked the Minister for Climate Action and Communication Networks the way in which he plans to grow the number of community owned renewable energy projects in view of the recently approved results of the RESS auction; and if he will make a statement on the matter. [25605/20]
View answerI know and I am sure that the Minister is aware that he misrepresented Sinn Fein’s position on the North-South interconnector in his last contribution but we will have time to come back to that, hopefully, in oral questions, where I can state the case clearly.
On the recent renewable electricity support scheme, RESS, auction, can the Minister outline how he intends to increase the numbers and welcome the community groups who are contributing?
I did not mean to misinterpret Sinn Fein’s position and I am happy to come back to discuss the North-South interconnector if I did.
The programme for Government recognises the importance of community involvement as new energy infrastructure is installed. Specifically, the programme for Government commits to ensuring that community energy can play a role in reaching at least 70% renewable electricity target. That target includes the introduction of a community benefit fund and a community category within the renewable electricity support scheme, RESS, auction. We are continuing to work with the EU to agree community participation as an integral part of installing new renewable energy and a route for community participation in the projects.
It is my intention that communities all over the country should be able to generate electricity and reap the benefits in their own localities from the sale of that electricity. In that regard, I aim to ensure the delivery of approximately 100 community electricity generation projects by 2030.
The RESS will drive the delivery of this objective. Earlier this month I announced that seven community projects had filled the allocated community capacity in the first commercial auction under the scheme. Two of them are 100% community-owned and the remaining five are at least 51% owned by the relevant local communities. In future onshore RESS auctions, there will be additional capacity allocated to the community category and I expect that only fully community-owned projects will be eligible.
In order to ensure an adequate pipeline of such projects, an enabling framework of capacity-building supports is being developed by my Department and the Sustainable Energy Authority of Ireland, SEAI. It includes information dissemination, trusted intermediary and adviser services, enabling grants, soft development loans and a simplified grid connection process.
The SEAI has commenced assessing the next wave of community projects through the sustainable energy community network. The initial call has identified already 20 of the more mature projects for immediate support. This first support takes the form of high level feasibility assessment with a view to preparing them for the next RESS auction. A further wave of projects has been identified for later support. A dedicated telephone number and email address, along with web pages from SEAI, can be accessed to facilitate further community engagement.
The Minister will be aware of the international comparisons with Scotland, for example, and many parts of Scandinavia in terms of the state infrastructure that is available to facilitate communities which want to connect to the grid. The Minister might outline his plans to build that infrastructure. All of this contributes to the price of electricity in Ireland, which we know is among the highest in Europe. Is the Minister in contact with energy providers to address the proposed hike in energy prices, particularly electricity prices? This is an issue that has been raised time and again with me by constituents. It has also been raised by my party leader.
The answer is "Yes". I am in contact with the energy regulator because if we go back to a position where Ministers or politicians are directly regulating the price of electricity, it would lead to higher prices as there would be less confidence in the system and more political interference. It would not work. The key way to bring down electricity prices in the long run is to switch to renewables. Our exposure to high fossil fuel prices is the greatest risk and the greatest cost. There are many other reasons for prices increasing. The benefit of renewables is that they would constitute our own power supply and keep money in the country. Use of renewables also brings down the wholesale price. While the renewable auction brings in an element of public service obligation payments, it was 20% cheaper than the previous renewable support scheme because the cost of wind and solar energy is coming down, slowly but surely. The best way of reducing electricity prices in the long term is to continue this path of relying on renewable power, turn our comparative advantage in wind power particularly, and also now the ability to deliver solar power as a way of protecting consumers.
On the price of electricity, does the Minister believe, on the basis of his exchanges with them, that providers are still intent on increasing prices? Are they still on that trajectory or will the Minister's intervention or that of the energy regulator provide some relief for customers? I am sure the latter would very much welcome an update on that.
Regarding the community infrastructure, Templederry is a very good example and we welcome the other projects that have been long held up as exemplars but the opportunity is there to scale up those projects and increase the level of penetration relating to them far more than is currently the case. What plans does the Minister have to tap into that potential? I know there is a good resource available to the Minister in his office.
The Deputy is absolutely right. Templederry is a great example. However, it is only an early example. As I said, I would like to see 100 Templederrys and if we got that we would look at the next 100. I believe there is huge benefit to this country in the development of community ownership of renewable energy. It is a power supply that lends itself towards more distributed ownership systems. The current constraint is at the community level. That is why the resourcing of the SEAI to support communities and give them the support measures I set out in the reply in terms of being able to get the planning, finance and the technical expertise is so important. The limit on ambition will not be in this House. I believe there will be nothing but support for widespread community ownership, particularly in the type of project we saw in Templederry, which is 100% community-owned. We are also starting to see new projects where it is not just about the generation but the use of the power at the other end. I am of the view that there can also be community development in respect of the supply side. That is what I will be encouraging.
