Dáil debates
Thursday, 12 May 2011
Electricity Generation
3:00 pm
Pat Rabbitte (Dublin South West, Labour)
I propose to take Question Nos. 7 and 23 together.
The programme for Government commits to the provision of a feed-in tariff for microgenerators producing electricity for their own homes, farms and businesses and selling surplus electricity to the grid. The programme also states that the tariff will not be significantly above the single energy market price for electricity. In line with the programme for Government commitment, my Department and the Sustainable Energy Authority of Ireland are finalising a cost-benefit analysis of a feed-in tariff programme for microgeneration. I expect their assessment to be submitted to me shortly. Any microgeneration programme must be fully cost-effective, taking into account the overall cost implications for all electricity consumers. As part of their analysis, the authority and my Department are assessing the varying potential kilowatt levels of microgeneration installations in terms of the levels of support they would require. The kilowatt size of installations and related costs and benefits will be factored into the overall assessment of a cost-efficient programme.
ESB Electric Ireland is the only electricity supplier in the market that offers microgeneration tariffs to domestic customers who generate up to 11 kW. ESB Networks agreed in 2009 to provide the necessary import export metering free of charge to the first 4,000 domestic microgeneration customers. ESB Networks provides a support payment of 10 cent per kW hour for those eligible customers for the first 3,000 kW hours exported back to the grid annually for a period of five years. The take-up of 364 customers has been disappointingly low despite a potential overall tariff rate of 19 cent per kilowatt hour being available. This tariff is significantly above the single electricity market wholesale electricity price, which currently averages 7 cent per kilowatt hour.
The Sustainable Energy Authority of Ireland is in an 18 month micro-generation pilot scheme which entails close monitoring of the performance of the 42 installations taking part. Those participating in the pilot have been able to avail of the tariffs offered. The findings from the pilot scheme are providing useful data which will inform the overall assessment of the optimum way forward to encourage the micro-generation sector.
Gerard Slattery
Posted on 16 May 2011 4:24 pm (Report this comment)
A proper feed in tariff for micro-generation needs to be introduced urgently ,in order to encourage people to generate electricity from renewable energy sources.People can reduce their energy bills ,protect against future energy price rises as well as reducing their carbon footprint.
People who can benefit are home owners,businesses schools ,farms ,and small industry.
It would be important that both installers and equipment providers are certified.This could be done under a Government Certification Scheme such as the one introduced in the UK during 2010.
Under such a scheme you could consider the following;
1. A Tax -free financial reward payable to the owners of small wind turbines or other renewable s generating carbon -free energy and helping the Country to meet its renewable energy commitments.
2.A generation tariff that would provide a rate of return of approximately 7 to 12 % on the capital cost of the renewable technology installed.
3. An additional smaller export tariff for units spilled on to the grid.
4.The income from the Feed in tariffs should be tax exempt as an introductory measure .
5. Farmers should be allowed to claim the V.A.T back on there investment if the power is being used for the farm.(This is presently not the case)
6. Payments could be funded by a levy on all bill payers and would lead to people changing the way they use electricity ,and most especially the wasting of it.
Summary;
We at Munster Wind turbines are hoping for a change in policy here to enable us to be able offer a decent package to our many interested Clients.
There are now many of our Irish Renewable energy business's setting up in the UK where incentives have already been set in place.
It would be a pity to see this industry fail here owing to the lack of incentives.
Many jobs could be secured in this business,but I am finding it extremely difficult to sell any of our turbines without some, if not all, of the above incentives being in place.
Ger Slattery
Munster Wind Turbines