Eamon Ryan (Dublin South, Green Party)

The development of electricity micro-generation is a key priority as part of the overall objective to deliver a more distributed and sustainable generation and network system and to reduce energy costs and carbon emissions. In February 2009, I launched the Micro Generation Programme, which is being operated by ESB Customer Supply and supported by ESB Networks. The programme has the potential to provide up to 4,000 domestic customers investing in micro-scale projects with a financial payment for electricity exported back to the grid. The ESB advises that 189 customers have signed up for the scheme to date. I have asked my Department to review the level of take-up with ESB with a view to identifying and addressing any barriers to participation.

The microgeneration programme also provides for two-way metering, to be installed without additional charge to the customer. The electricity producer is paid a price of 19 cent per kilowatt-hour, which will help to offset the start up costs. The eligible micro technologies include wind, solar and hydro as well as combined heat and power.

It is the case that micro-scale electricity production will benefit the participating customers upfront by allowing them to replace retail rate electricity with their own cheaper generated electricity. Sustainable Energy Ireland's microgeneration pilot programme currently involves 42 projects and a range of technologies including wind, solar PV and micro-hydro. Twenty-seven wind turbines and 14 solar photovoltaic installations have been commissioned and initial results are expected later this year. The pilot programme is being carried out in conjunction with key stakeholders and is designed to assess market potential, technologies, economics and emissions savings. The field trials are also addressing grid connection and technical standards to ensure the power security, safety and quality of installations.

The national smart metering pilot programme is proceeding in parallel with the current microgeneration initiative and there are important links between the two. The data gathered from the interval meters being used in a microgeneration scheme will provide important information on import and export of electricity. This will feed into the analysis of electricity use being carried out in the smart metering pilot programme. In turn, the findings of the smart metering programme will inform the development of a long-term microgeneration strategy. Other initiatives designed to facilitate the development of microgeneration include the 2008 planning and development regulations which provide for planning permission exemptions for certain categories of microgeneration.

Additional information not supplied on the floor of the House.

The purchase of wind turbines by companies is now eligible for accelerated capital allowances under the Finance Acts. To be eligible for the accelerated capital allowance, the turbines must comply with the relevant eligibility criteria. In particular, they must be for the purpose of generation of electricity primarily for on-site use by the company. Other developments in support of microgeneration include the streamlining of licensing arrangements for compliant small scale generators and the adoption of a new standard for connection of domestic generators to the distribution system.

An SEI study completed last year points to a significant number of barriers to the deployment of micro generation which need to be addressed. These include: the need for further work on the impact of deployment of large numbers of micro-generators on the existing electricity distribution system; the immaturity of some of the technologies; the need for equipment standards, installation practices and codes to ensure appropriate safety and efficiency standards are in place; and the need to adopt the present administrative infrastructure for customer metering and billing.

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