Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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8. To ask the Minister for Communications, Energy and Natural Resources his plans to establish a scheme to allow micro generation units to provide electricity to the national grid, and to compensate the providers for the electricity that they produce. [16291/15]

Alex White (Dublin South, Labour)
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The renewable electricity feed-in tariff, REFIT, schemes are the principal means of supporting renewable electricity generators for renewable energy exported to the grid. These schemes support electricity generated from a range of renewable sources including small scale hydro, biomass and wind. Based around power purchase agreements between generators and electricity suppliers, REFIT schemes assure a minimum price for each unit of electricity exported to the grid over a 15-year period. Small scale renewable generation is eligible to apply for support under the REFIT schemes.

The SEAI, Sustainable Energy Authority of Ireland, provides a range of supports to businesses and home owners in the deployment of renewable energy technologies including training and advice. Businesses and home owners wishing to develop renewable energy projects can also avail of grant support for investment in renewable energy installations under the better energy communities and better energy homes schemes respectively.

In the context of the forthcoming definitive energy policy paper, the Department is considering matters relating to Ireland's fuel mix including the role of microgeneration. Analysis of the potential of microgeneration technologies such as small scale wind, solar, including photovoltaic, and small scale hydro, has been carried out by the SEAI. Its findings, along with responses to the recent consultation on the Green Paper on Energy Policy in Ireland, will inform future policy on the provision of any market support for microgeneration. The views will be taken into consideration in preparation of the definitive White Paper on energy which will be finalised in September.

Given the emerging policy context and the requirements of the EU target market for electricity, my Department is also in the process of developing a new support scheme for electricity to be available from 2016 onwards. A key component of this will be consideration of the available technologies including solar technologies, their cost effectiveness and the level of support required. The scheme will be subject to state-aid clearance and the initial public consultation on the new scheme will commence shortly.

I thank the Minister for his reply. There was a scheme whereby people could micro-generate electricity and connect to the grid. I think the producers were paid 16 cent per kilowatt/hour, but that scheme was scrapped. That 16 cent payment normally came off the overall electricity bill, so there were reduced bills for households. Those customers were doing the right thing in accordance with Government policy for promoting renewable energy.

I have received many calls, as I am sure other TDs have, from people who asked whether the scheme would be replaced with a better one. We should accelerate the promotion of micro-generation for small and large industries, villages and householders. We should always reward people for doing the right thing.

Alex White (Dublin South, Labour)
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The scheme to which the Deputy refers was provided by Electric Ireland, which had been offering a micro-generation feed-in pilot since February 2009. It is true that on 31 December 2014, that pilot scheme was closed to new customers, although the scheme will remain open to existing Electric Ireland customers until 31 December 2015. No other supplier had chosen to provide such a tariff either to domestic or commercial customers, although they had been invited to do so by the regulator. The Department is not aware of the reasons for the decision to discontinue the scheme, which would have been a commercial call by Electric Ireland.

Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, CER, which is an independent statutory body.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I understand that but I imagine that a Government statement of policy would influence how companies approach this matter. Perhaps they need to be nudged and encouraged a little bit.

Alex White (Dublin South, Labour)
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Section 10A of the Electricity (Regulation) Act 1999 provides that I, as Minister, may give general policy directives from time to time, but I am expressly precluded from giving any policy direction in respect of any individual undertaking or person. It is therefore not open to me to do that.

I do not want to take from the broader point, however. The Deputy said that people should always be rewarded for doing the right thing, which is fair. In our energy policy we must try to involve citizens who want to do the right thing and contribute. I want to ensure that in the White Paper this year we have got a real sense of involving the citizen, whether as a consumer or a supplier, where the opportunity is there for us to put those supports in place. It is not without difficulty and there is a scale issue, as I discussed with Deputy Pringle earlier. However, we must take big, bold steps in order to reach our targets but we must also ensure that we bring citizens with us. We should do our best to support those who wish to make a contribution. It will feature in the White Paper.