Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I propose to take Questions Nos. 49 and 73 together.

To clarify, my understanding is that it is €5 million between the two companies and the State is not putting money into the project. If there are any supplementary questions, I will deal with them in a minute.

As Minister with responsibility for energy and climate action, I am fully aware of the major challenge facing Ireland to live up to the ambition of the Paris Agreement on climate change. I have just concluded the public consultation on the draft national mitigation plan, which will continue the process of transitioning Ireland to a low-carbon, climate-resilient and environmentally sustainable economy by 2050. The national mitigation plan will be submitted to Government for approval in June.

Against this backdrop, the recent commercial decision between Bord na Móna and the ESB to develop a solar photovoltaic, PV, project is a welcome announcement. It is increasingly recognised that solar PV has the potential to contribute to meeting Ireland's renewable energy and climate change objectives.

Ireland has made considerable progress in the decarbonisation of our electricity sector in recent years, with over 25% of our electricity coming from renewable sources in 2016. This progress, while welcome, will need to accelerate in pace in the coming years. To support this continuing progress, my Department is currently working on developing a new renewable electricity support scheme. This involves examining the introduction of supports for a range of renewable energy technologies, including solar PV - both rooftop and ground-mounted. To date, only around 6 MW of solar PV has been installed in Ireland, almost entirely on rooftops.

Solar undoubtedly has a key role to play in the transition to a low-carbon energy future and presents significant opportunities for citizens and the economy as a whole. The Sustainable Energy Authority of Ireland recently published a report, entitled Ireland's Solar Value Chain Opportunity, showing that the cost of solar PV modules has fallen by 80% since 2009 and is set to continue to fall in future years. The reduction in solar PV prices will lead to solar becoming more cost-effective and thus likely to take a greater share of new renewable energy developments in the future. This drop in cost will be reflected in the design of any new support scheme.

The recent agreement to build a solar PV project builds on the existing partnership between Bord na Móna and the ESB in onshore wind.

Calls for the introduction of solar planning guidelines are matters for the Minister for Housing, Planning, Community and Local Government.

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