Dáil debates

Tuesday, 21 March 2017

Other Questions

Action Plan for Rural Development Implementation

7:35 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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37. To ask the Minister for Communications, Energy and Natural Resources if he will consider the creation of a renewable electricity feed in tariff for microgeneration using action 114 of the Action Plan for Rural Development; and if he will make a statement on the matter. [13697/17]

7:45 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The 2009 EU renewable energy directive sets Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. Ireland is committed to achieving this target through meeting 40% of electricity demand, 12% of heat and 10% of transport from renewable energy sources. The Government has a range of policy measures and schemes to incentivise the use of renewable energy and although good progress towards the target has been made, meeting the 16% target remains challenging.

The 2015 Energy White Paper recognises the potential contribution micro-generation can make to Ireland meeting its renewable energy targets and commits to explore the scope to provide market support for micro-generation. My Department is currently developing a proposed new renewable electricity support scheme, RESS, which will be designed to assist us in meeting our 2020 and 2030 renewable electricity targets.  As part of the RESS analysis, which is under way, providing pathways for micro-generation across a range of technologies is being assessed and community participation in Ireland’s renewable energy transition will be a key feature of the new scheme. This analysis will help shape effective policies and identify appropriate market intervention mechanisms to support these policy objectives. A second public consultation will be published in quarter two of this year outlining various design options. However, following the outcome of this second consultation and before any new scheme can be introduced, it will need to secure Government approval and state aid clearance from the European Commission. Subject to this, it is expected the new scheme will become operational in the first half of 2018.

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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I thank the Minister. We have a huge challenge in reaching our renewable energy targets. We need more initiatives like the one the Minister has described which is very encouraging. We have opportunities in solar, hydro and biomass energy. There are also huge opportunities in offshore wind. There seems to be a focus, understandably, on larger scale energy producers. I want to raise the issue of micro-generation, that is, the small generation of electric power by individuals, small businesses and communities to meet their own needs or alternatively as a supplement to the traditional centralised grid connection. I have a constituent in east Clare who has been in touch with my office. He has put together and designed a power generating unit that can generate power off a local stream. It makes sense to me that an individual like that should be in a position to benefit from the initiative and sell that electricity to the national grid. Will the scheme the Minister is putting together deal with that issue?

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The new support scheme should be far broader than schemes up to now. Up to now the focus has been on onshore wind. There is an opportunity now to expand and look at both domestic and large scale solar, hydro, biomass, offshore wind energy and micro-generation. Micro-generation has to be part of that mix. I cannot give the Deputy a commitment on any specific project. There are a number of issues that would need to be looked at in that context, one of which is whether the grid at the location can take it. One of the issues we will have with some of these projects is the capacity of the grid. It is an issue that is coming up more frequently now in solar energy. At the moment there are enough solar applications for connection to the grid that if we turned off every power generating source on the island of Ireland, we would have enough solar capacity on a sunny winter's day to run the country.

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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The Minister mentioned in his opening remarks the need to secure Government approval and that he had hoped that if he gets Government approval he could push on in the later stages of this year and perhaps next year. He also mentioned the question of state aid. Has the Minister made any inquiries on the state aid impact? Is he confident the scheme he is designing will get around that particular question?

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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Has there been engagement with the Commission on state aid? Yes, of course, there has been. Our Department will be in regular contact across a number of areas. Is it likely it will get approval from the European Commission? Yes, it is our intention to design a scheme that will get the approval from the Commission. It is important to remember that under the renewable electricity support scheme, it will be funded through the public service obligation so we have to be cognisant of the impact that will have on both commercial and domestic electricity bills. If we were to approve every single solar application in the country, it would have a dramatic impact on the cost of electricity. It would significantly increase the cost of electricity in this country. We are trying to get cost-effective supports that can be put in place, acknowledging the need to expand the suite of renewable energy power generators that have been supported up to now and to try to support a far broader range.

Question No. 38 replied to with Written Answers.