Dáil Éireann Debate, Tuesday - 18 December 2018
52. Deputy Aindrias Moynihan asked the Minister for Communications, Climate Action and Environment if consideration will be given to a grant scheme for microgeneration of electricity to allow communities and individuals to develop small scale local power plants; and if he will make a statement on the matter. [53173/18]
Amharc ar fhreagra57. Deputy Pat Deering asked the Minister for Communications, Climate Action and Environment the steps he is taking to increase the amount of electricity being generated from renewable sources; and the further steps he is taking to develop microgeneration. [53193/18]
Amharc ar fhreagra92. Deputy Timmy Dooley asked the Minister for Communications, Climate Action and Environment the position regarding the development of facilities to support the sale of electricity back to the grid; and if he will make a statement on the matter. [53179/18]
Amharc ar fhreagraFirst, I congratulate the Minister, Deputy Bruton, and the Minister of State on their appointments.
The recent Intergovernmental Panel on Climate Change, IPCC, report brought into sharp focus the scale of the task ahead in terms of climate change and the need to intensify our efforts over the next 12 years. There is a willingness on the part of the public in that regard where they want to take the various steps needed. One of those steps is micro-generation. Different pilot schemes have run over the years and I am conscious the Minister of State has one in play now, but how quickly will he scale up that pilot scheme to ensure a full, open scheme is available in which the maximum number of communities and the public can take part? People genuinely want to engage and do what they can in respect of climate change.
I propose to take Questions Nos. 52, 57 and 92 together.
I strongly support a route to market for citizens and communities to generate their own renewable energy and to receive a fair price for doing so. Indeed, Ireland has been involved in developing the EU's Clean Energy Package which entitles renewable self-consumers to receive remuneration for excess electricity exported to the grid.
Significant work has already been carried out in this area by my Department and the Sustainable Energy Authority of Ireland, SEAI, working with industry stakeholders, including the Micro Renewable Energy Federation. However, more work needs to be done before we can introduce a legal framework to fully implement this approach.
One challenge is to design a remuneration regime for microgeneration as per the new directive, which reflects the market value of that electricity fed into the grid and also to work out how it would impact on network charges and on the public service obligation, paid by other users for exported electricity taking the benefits of self-consumption into account.
In July 2018, a new pilot scheme to support microgeneration was introduced, initially targeting domestic self-consumption through a grant scheme for solar PV installation and battery storage. Over 3,000 applicants have expressed an interest to date and approximately 200 rebate claims are in process for payment by the SEAI, which is administering the scheme on behalf of the Department.
A review next year of the pilot scheme will inform potential future phases of support for microgeneration.
The Department currently also offers supports to communities and small and medium enterprises, SMEs, to install solar PV and other energy efficiency measures through the SEAI-led sustainable energy communities and Better Energy communities schemes.
To go back to my original question, how quickly will the Minister scale up that pilot scheme? Various pilot schemes were run in 2008. The ESB ran one previously also. The Minister of State has had one running for several months and he is talking about doing a review next year. The IPCC set out that we have 12 years to take action on climate change. The strongest message it sent was urgency. A greater level of urgency is needed to deal with this challenge and the Minister of State is talking about having that review conducted some time next year. How quickly can he get it done? I do not want one of those 12 years to be lost doing a pilot scheme. How quickly will the new scheme be up and running? He has already seen different aspects of the older schemes so we need to know how quickly he will do that. Also, what kind of targets will the Minister of State set in respect of it? Will there be opportunities for communities to take part and will that participation be widespread?
Likewise, I ask the Minister of State about the amount of electricity that can be generated from renewable sources. We have seen some areas move towards solar farms, for example, but it is a very slow process. The farmer might get permission but he or she might have to wait a number of years to get connected to the grid. There is no incentive in that regard. We saw in recent times where there may be development of wind turbines, which I believe have a huge part to play, but there is a huge disincentive in that regard. There has been an increase in commercial rates, for example. I am aware that the rate for one of those turbines has increased from €40,000 to €120,000. That is a major disincentive to the entire process. What can we do in that regard? As mentioned earlier, the clock is ticking very fast. To move fast in this regard, we need incentivisation for all sectors, in particular the renewable sectors. What plans are in place to deal with these in the short term?
Microgeneration is a very small part of the overall plan. It is important for communities and that we do that in a way that will work. It is expensive and we need to make sure that whatever scheme we bring in will be cost effective. That is the reason the pilot has been done. It will be renewed this year and will be brought forward. We are looking at other schemes. As I said earlier, the big schemes such as offshore and on-shore energy, wind farms and solar are where we might get the bigger hits in terms of creating more sustainable energy.
Referring to Deputy Deering, we know the problem is the delays in getting the processes and the consent to do the work. I would point out a number of aspects in that regard. The action plans for local authorities have been published, which will help them speed up the process by which planning permissions can be granted.
Also, the action plan on climate change is being prepared by the Minister, Deputy Bruton. That is a cross-departmental plan which will be brought forward in the spring. We need to make sure that we examine the deficiencies in our system so that we can create the environment that will allow people get on with these worthy projects. That is what the action plan is all about.
I thank the Minister of State. He is right that microgeneration is just one of the many components needed. We want to give the maximum number of individual households and community groups the opportunity to play their part but they need to have that opportunity as soon as possible. How soon will the Minister of State have that scheme open and up and running for them? The pilot has been running for several months. As I pointed out, the clock is ticking. I do not want to see one of the 12 years spent on a pilot scheme. When will that new scheme be available to ensure the widest number of people can have an opportunity to participate in it? We need to go from talking the talk not just to walking the walk but running. The Minister of State is starting from a position where he is well behind. We need this scheme to be up and running as quickly as possible to allow the maximum number of individual households and community groups, and not just commercial interests, take part in it.
I welcome the progress made on the action plan for local authorities and on the planning process also. However, the major blockage seems to be the connection to the grid, particularly from a solar farm viewpoint. The planning process could have been completed. The owner of the solar farm, for example, could be waiting a number of years before he or she will see payback in that regard. That is a huge disincentive. We want to get more of those facilities available, which will have a huge part to play in take-up of the scheme. That has to be addressed.
The planning process around wind turbines needs to be addressed also. We have been waiting on the regulations around those for a number of years. Again, that is a drawback in that regard. The clock is ticking and we need to see progress sooner rather than later.
To respond to Deputy Moynihan first, 3,000 applicants have expressed an interest in the microgeneration pilot scheme currently in play but only 200 have looked for a rebate. We are not just walking; we are running.
Two hundred are running out of many thousands.
The other thing I want to say is that communities and small businesses are also being supported through schemes led by the Sustainable Energy Authority of Ireland like the sustainable energy communities scheme and the better energy community scheme. They are for smaller communities like the communities Deputy Moynihan is talking about and the communities I know as well. Communities can apply for these schemes and they operate in rural areas. It is important that communities apply and know these schemes are running for them to apply to through the SEAI.
I agree with Deputy Deering's comment that we have much work to do in co-ordinating the entire effort so that we squeeze down the time it takes to get all the processes right. That will help to get all these people connected to the grid, and we are working on that.
