Mr. Eamonn Confrey:

Deputy Stanley mentioned two specific things around microgeneration. I know the Sustainable Energy Authority of Ireland will probably want to come in on this point. The Minister announced in January his proposal for a microgeneration scheme in the summer, which will be a first phase. That will start at the domestic level for domestic consumption only.

Deputy Stanley has published draft legislation. Some of my colleagues have been talking to Deputy Stanley's team on the outline of the Bill. There are many good points in that Bill that the Minister is keen to try to facilitate where we can do so.

We are working closely with SEAI on gathering the evidence and the appetite among the public for the take-up of domestic microgeneration. Our sense is that there is a good deal of enthusiasm, but we want to do it on a phased basis to ensure we get it right. We want to ensure that we do not necessarily make some of the mistakes that we have seen in other jurisdictions. That is very much the plan at the domestic level.

More broadly, solar photovoltaics technology has been assessed as part of the new renewable electricity support scheme. Again, Deputy Stanley probably will be aware that we undertook a major consultation in this area and a second and final consultation late last year. The Minister's intention is to go to Government for approval of the overall scheme design shortly.

Thereafter, we will begin the formal state aid notification process.

According to international analysis, the costs of solar PV have decreased dramatically over the past six or seven years and the indications from the International Renewable Energy Agency, IRENA, and others suggest that costs still have a way to travel in terms of reductions. This is good because while electricity support schemes do not have a direct Exchequer impact since they are funded through the PSO levy, we are keen to ensure that we do not lock in too high in respect of some of these technologies. The indications are that solar PV costs will continue to fall, which is good, and that it will have a role over the next decade and out to 2030 because, as Mr. Carroll mentioned, the targets are challenging in all sectors.

The cost trajectory for offshore wind energy generation is positive. Costs continue to fall and there is renewed interest in a number of projects, particularly on the east coast, among developers who would like to take the projects forward. Offshore wind has also been assessed as part of the new support scheme. We are encouraged by the trajectory of prices and we are working closely with colleagues in the Department of Housing, Planning and Local Government on the necessary legislation for future offshore renewable energy because of the licensing and consenting process that will be needed. The Minister will be going to Government shortly in respect of the renewable electricity support scheme, RESS.

The other issue related to biofuels. Last Friday, the Minister announced his intention to increase the biofuels obligation to 10% by volume as of 1 January 2019 and to increase it again to 11% from 1 January 2020. A policy document was published by the Department on that front on Friday evening.