Mr. Jim Gannon:

The SEAI produces Ireland's national energy projections every year and we agree with what has been stated about the projections to 2020. We are unlikely to hit our targets though it is possible, with a high degree of grid connection between now and 2022, predominantly from wind, that we could make 40%. Solar could provide some additional generation capacity, given how quickly it can be delivered subject to planning and grid connection.

As regards the expansion of solar power globally, new solar PV capacity grew by 50% last year although it remains around 2% of global supply. It has outpaced gas, coal and wind in terms of growth in the past 12 months and is considered likely to continue on that trend. The costs of solar have decreased by approximately 85% since 2009, predominantly catalysed by national support schemes in other jurisdictions. It has increased demand so the scale of the supply chain has increased and the amount of research and development has increased, adding to efficiency and reducing costs for delivered capacity. Ireland can benefit from that through appropriate support of solar PV.

There are only in the region of 10 MW of solar in Ireland, predominantly at residential and SME scale. Ireland supports solar PV at that scale through better energy communities and accelerated capital allowances but, to date, no support has been in place at utility scale.

Small-scale deployment is important because it can tie in communities, businesses and individuals to a technology and the tangible benefits relating to it such that as attempts are made to develop a utility scale, they are comfortable with it. There is no one method that appears to be successful for micro-generation support. Net metering, tariffs and grants have been attempted in other jurisdictions. In terms of micro-generation support, we need to determine what is right for Ireland and this cannot be done in a short timeframe.

On the large-scale side, there is a trend towards auctions, particularly technology-neutral auctions. It is a matter for the Department to determine how this would be conducted. The Department is currently in the middle of a review of the consultation phase of the RESS to address that issue.

The SEAI has produced a report on the supply chain opportunities for Ireland with regard to solar PV focusing only on those industries where we are currently leading, including semi-conductor production, and how we can transfer those skills into the PV industry. On deep retrofit, the SEAI, funded by the Department, has supported the upgrade of approximately 300,000 homes over the past seven to eight years. We have started raising the bar for our commodity schemes. For example, in regard to the better energy homes scheme, this week we dropped oil and gas supports but we have increased the support for external wall insulation and for controls, where a larger bang for buck for the taxpayers' euro is achieved. Separately, as soon as possible over the coming months we will implement a support for heat pumps which, again, will help the transfer of people from fossil fuels to more sustainable heat supplies. Alongside the increase in the lower bar, we are examining the deep retrofit of buildings. This is a specific project looking at the different types of houses in different conditions in the country in terms of the best combination of technologies to bring our housing stock to the level it needs to be at by 2050. We are examining the technologies available, the return on investment for those technologies, the supply chain, how the homeowner will finance it and how in the background not just the Exchequer but private sector finance can be brought this area. We have early learnings that I am happy to do into in more detail with any of the members or the Chairman.

There is a similar trend regarding offshore wind. There has been a significant decrease in the overall cost of offshore wind across a number of different auctions in Europe and worldwide. It is a technology that has proven to deliver at scale. The challenges in Ireland that could need to be addressed, that can help militate against inertia in these projects, would be the review of the offshore renewable energy development plan which is underway in the Department and will set this consistent policy framework. Separately, it is critical that the maritime area and foreshore Bill is delivered soon to provide clarity around that licensing and consenting regime for external developers and Irish developers.

I am happy to take questions from members.