Dáil debates
Thursday, 16 November 2023
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Renewable Energy Generation
11:00 am
Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source
A community projects category was included in the RESS 1 and RESS 2 competitions. In total, seven community projects were successful in the RESS 1 auction. Four remain in progress and are either energised or due to energise this year. In RESS 2, eight community projects were successful in the auction, are continuing to progress and are currently expected to energise by the end of 2025.
Through my Department and SEAI’s continued engagement with RECs, there is evidence of significant challenges that REC projects may face. These challenges include the competitive auction-based nature of RESS, along with grid, financial, general know-how and other barriers to project delivery. My Department's analysis is that the auction and contractual delivery-based nature of the RESS does not align well with the capacities and structures of communities. Grid connection costs and uncertainties are a major challenge for communities, which is something that the CRU is examining as part of a review of its electricity generation policy.
In addition, the financial risks associated with being unsuccessful in a RESS auction are difficult for a community to manage, particularly in the current challenging macro environment where supply chains and inflationary pressures are adding additional project risks. The SRESS will offer such projects a simpler, non-competitive route to market. Potential SRESS applicants will know the export tariff they are eligible for before planning for their project begins. This will give them more certainty compared to the competitive RESS.
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