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

The 2015 energy White Paper presents a long-term strategic vision that is intended to guide the direction of Irish energy policy from now until 2030. It identifies the long-term strategic importance of diversifying Ireland's energy generation portfolio and largely decarbonising the energy sector by 2050. My Department is developing a proposed new renewable electricity support scheme, RESS, which is designed to assist Ireland in meeting its renewable energy contributions out to 2030 and, in addition, I intend that the scheme will provide opportunities for shovel-ready projects that can deliver for our 2020 targets.

The new scheme will support the delivery of Ireland's national policy objectives, in particular the transition to a low carbon and climate resilient society, as laid out in the national mitigation plan, the national development plan and Project Ireland 2040. In addition, the new scheme will deliver capacity building supports for community-led projects, including financial, technical and legal assistance, along with community benefit obligations for all projects looking for support under the renewable electricity support scheme.

The design of the new scheme include an extensive independent economic appraisal which compare the cost of supporting a range of commercial renewable technologies at various scales to ensure that the new scheme delivers value for money for energy users while also delivering on the energy pillars of competitiveness, sustainability and security of supply. The assessment also includes analysis of the optimum financial support mechanisms for renewable technologies, in line with the 2014 EU state aid guidelines. The analysis indicates that a number of renewable technologies have converging and in some cases overlapping cost ranges, and I note the continued falling costs of renewable technologies such as offshore wind and solar photovoltaic, PV.

I am keen that the new scheme encourages the diversification of renewable energy technologies in Ireland while mindful of the need to minimise the costs on consumers through the public service obligation, PSO, levy.At this stage, no final decisions have been made regarding the new technologies or scales to be supported under the new renewable electricity support scheme.

The final design proposal will shortly be brought to Government for approval, including the overall costs and technologies to be supported. Subsequent to the Government decision, a formal application for state aid clearance will be submitted to the European Commission and the scheme is expected to open in 2019.

In parallel with the development of the RESS, I am also developing a pilot scheme for microgeneration which will be launched later this year and will target domestic households and self-consumption.

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