Oireachtas Joint and Select Committees

Wednesday, 12 June 2024

Joint Oireachtas Committee on Agriculture, Food and the Marine

Use of Agricultural Land for Renewable Energy: ESB Networks

Mr. Nicholas Tarrant:

I will comment on the scale of the projects. When we talk about grid-scale projects, if someone decides to use a part of a farm or landholding for a large-scale project, for example, there are a number of different steps involved in that. The first step is applying for planning permission, as the Senator mentioned. The second is going through what is called the enduring connection process, which is a process by which people apply to get a grid connection. That process depends on whether it is a transmission project or otherwise. If it is a large project, it would involve an application to EirGrid. If it is a distribution connection project, the application would go to ESB Networks.

In recent years, under this process, which is a regulatory process, applications have been dealt with by way of what is called an annual batch. Where projects come into that batch, they are assessed depending on where in the country they are located and whether the area has a lot of applications. Our planning engineers have to consider what work is required to give a grid connection offer to an applicant, as in the example the Senator mentioned.

If a connection offer is issued and the applicant is happy to proceed, there is then the question of a route to market for that project. This could mean, for instance, entering into the renewable electricity support scheme, RESS, auction process, where we look at the commercial aspects of a project. The application goes through that process to see whether the applicant has a route to market to sell electricity. I am talking here about large-scale projects.

Once applicants get through those hurdles and if they decide to proceed with the project, there is then work to be done around connecting back to the local substation, depending again on the scale of the project. Developers have a choice of building the infrastructure themselves, except that ESB Networks would do the work back at the substation, or they can ask ESB Networks to deliver the connection project. A considerable amount of work has been done on investment at transmission and distribution level. However, there are parts of the network that are oversubscribed for connections. That is because what we have doing over the past 15 to 20 years is harvesting as much as we can from the existing network while investing at the same time. That all relates to large-scale projects.

Coming down in size to rooftop solar projects for a domestic house, for example, that application process is done on what is called a fit-and-form basis. A solar installer will come to an applicant's house and, if the applicant gives permission to go ahead, will do the installation. The householder submits a form to us to say the equipment is being installed. The application is processed in that way, with nothing else to be done by the applicant.

The next size up again could involve a farmer who wants to put what we call mini-generation capacity on the roof of a farm building. Again, such an application goes through a connection application process for assessment. The 2,437 projects in the mini-generation category include farmers who are looking to progress with installing solar on their farm buildings. The targeted agricultural modernisation scheme, TAMS, grants form part of that process. Those mini-generation projects are designed to be more for self-consumption. There is a payment for export but, as I understand it, the grant scheme is designed more around self-consumption.

That is an overview. I am happy to take further questions.