Joe Carey (Clare, Fine Gael)
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Question 29: To ask the Minister for Communications; Energy and Natural Resources if he will give details of the new tariff proposals to promote microgeneration on farms, homes and businesses here [23072/10]

Eamon Ryan (Dublin South, Green Party)
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I have already given this reply in respect of an earlier question. However, I might add to what has already been stated by saying that work is ongoing to encourage the on-site generation of electricity in homes and farms across Ireland. The ESB scheme currently in operation provides a guaranteed tariff of 19 cent per kilowatt hour of electricity produced and exported to the grid. Eligible technologies include small scale wind, photovoltaic, hydro and combined heat and power.

Simon Coveney (Cork South Central, Fine Gael)
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The Minister has already read this reply into the record.

Brendan Howlin (Wexford, Labour)
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Yes. Perhaps we might proceed to supplementary questions from Members.

Simon Coveney (Cork South Central, Fine Gael)
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I will not rake over old ground and refer to our frustration with regard to a date not being provided. However, will the Minister outline his views on the putting together of an effective new support scheme for microgeneration? Will he indicate whether his Department intends to model any new scheme on what is being done in the UK, which essentially involves having a relatively low export tariff but a strong support system in order to encourage people to produce their own power, or in Germany, where a generous export tariff is supplied in respect of excess power that can be sold back to the grid but where fewer supports are provided in respect of producing one's own power? From a Fine Gael perspective, the British approach would appear to be more appropriate to Ireland. It would be useful if the Minister could indicate the direction in which his Department intends to move.

Eamon Ryan (Dublin South, Green Party)
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In the first instance, we must move above the 11 KW range into higher scale categories. In addition, we must broaden out the debate to consider whether geothermal or other technologies should be included under the scheme. I am of the view that the price supports should be much higher for smaller producers than for their larger counterparts because the economies of scale that apply and the nature of this technology means that larger devices tend to be much more efficient and the economic case is, therefore, much stronger. Some form of upward grading scale that would support smaller units to a much more significant degree than their larger counterparts is one option that would be suitable.

The new scheme should also be simple in nature. We must move away from a grant-based model towards one that is relatively cheap and easy to implement. A REFIT price system that would build on what we have already done in this area would be acceptable. The scheme must apply to all producers. It cannot just relate to the ESB, which is the only producer to date to step up to the plate in the context of giving a higher price.

Whether the British model or that which obtains in Germany will be adopted is one of the matters we intend to consider. The Deputy's views in that regard will be taken into account.

Simon Coveney (Cork South Central, Fine Gael)
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When the Government introduces a new support scheme for microgeneration - I hope it will emerge by the end of this month - will European Commission approval in respect of it be required? It could take a further couple of months to obtain such approval. Does the Government intend to obtain approval in advance in order that the scheme can be implemented immediately rather than having a situation similar to that relating to the REFIT price for biomass, which has caused a two-month delay in the relevant scheme?

Eamon Ryan (Dublin South, Green Party)
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I would prefer not to be obliged to seek state aid clearance from Europe because this can delay matters. It is frustrating that, on one hand, Europe is pushing us to meet targets relating to renewable energy while, one the other, competition rules, which one cannot avoid, are in place. My preference would be not to have to seek such clearance. However, there may not be an easy of avoiding such an eventuality. I have asked officials in Brussels to ensure that our submissions are processed as a matter of urgency in order that the scheme will not be unduly delayed within the European system. Written Answers follow Adjournment Debate.