Timmy Dooley (Clare, Fianna Fail)
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39. To ask the Minister for Communications, Energy and Natural Resources if he plans on announcing details of the next REFIT scheme; if PV solar energy will be included in this; and if he will make a statement on the matter. [13896/17]

Timmy Dooley (Clare, Fianna Fail)
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The purpose of the question is to ask the Minister if he plans to announce details of the next REFIT scheme? When does he intend to do that? Will photovoltaic, PV, solar energy be included in it? Will he make a statement to the House on his intentions in that regard?

Denis Naughten (Roscommon-Galway, Independent)
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My Department is currently developing a proposed new renewable electricity support scheme, RESS, which will be designed to assist Ireland in meeting its renewable energy contributions out to 2030. Analysis is ongoing of the types of technologies to be included such as biomass, offshore and onshore wind, waste, and combined heat and power. This analysis also includes an assessment of the cost of supporting solar PV, both rooftop and ground-mounted.

The programme for a partnership Government contains a commitment to facilitate the development of solar energy projects in Ireland. I was the one who proposed that inclusion in the programme for Government. This builds on the 2015 Energy White Paper and recognises that solar has the potential to provide a community dividend, thereby also enhancing citizen participation in Ireland's energy future. The new scheme design requires detailed economic analysis on the viability and cost-effectiveness of supporting several renewable technologies at various scales. Once this analysis is complete, my Department will publish a second public consultation on the design of the new scheme. There will be many decisions to be made on the scheme with regard to scale and technologies and, in particular, how communities will have a greater involvement than in previous schemes.

Following the outcome of this second public consultation and before any new scheme is introduced, it will need to secure Government approval and state aid clearance from the European Commission.  Subject to this, it is expected that the new scheme will become operational in the first half of 2018. I am fully aware of the level of interest in the solar PV sector in Ireland. The most recent data available to my Department has indicated there have been over 550 applications, amounting to about 3,900 MW of solar capacity, seeking a connection to the electricity grid in the last 18 months. Notwithstanding the level of solar applicants seeking connection to the grid, my stated position on this is very clear. While solar energy has a role to play in Ireland's energy future, we cannot have a situation where a new support scheme leads to a disproportionate increase in people’s electricity bills through a higher public service obligation levy. In designing the new RESS, the needs of and cost implications for people and businesses will be foremost in my mind.

Timmy Dooley (Clare, Fianna Fail)
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I am well aware of the Minister's concerns about ensuring that those who use electricity, both domestically and commercially, have rates that are tolerable, do not damage their capacity to live in, heat and light their homes and premises and do not impact negatively on businesses, but Ireland is obligated to meet the EU's target of 16% of all energy being generated from renewable sources by 2020 and it is essential that we continue to grow our renewable capacity. Currently, we are nowhere near meeting out 2020 targets. The Minister knows that 27.3% of electricity demand was met by renewable sources in 2016, of which wind accounted for 23.2%. It would be foolhardy of the Government to continue its reliance on onshore wind energy, given that it does not guarantee security of supply. Instead, we should branch out and expand our renewable portfolio to include offshore wind, biomass, tidal and solar, where possible.

There is little State financial support for those wishing to construct commercial solar energy facilities. The main renewable energy schemes are the new retrofit programme and the alternative energy requirement. The Government has been stalling on the details of the former for months, which it is now anticipated will be launched in late 2017. While costs have decreased considerably, industry experts agree that large-scale development of solar capacity is unlikely without State support. I appeal to the Minister to get the scheme up and running as quickly as possible. There is a trade-off with the potential cost to users, but we must meet our targets, given that the cost to the State would have to be paid by the taxpayer anyway if we failed to meet the targets.

Denis Naughten (Roscommon-Galway, Independent)
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The Deputy is right about there being a balance but I recall how, soon after I was appointed Minister, he and his colleagues lectured me on the impact of the PSO on domestic bills.

Timmy Dooley (Clare, Fianna Fail)
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Yes.

Denis Naughten (Roscommon-Galway, Independent)
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I must get the balance right in that regard. Solar will be a part of that mix.

Deputy Dooley is right, in that one of our main problems to date has been how we have effectively put all of our eggs in one basket, that being, onshore wind. There needs to be a broader suite of supports - solar, hydro, biomass and offshore wind. One of my first decisions as Minister and one of my first actions at the Council of Ministers was to sign an agreement with seven EU member states on developing our offshore capacity. Ireland's capacity is considerable and we are putting funding towards it. Subject to Government approval and state aid rules, I intend to put additional supports in place for offshore wind energy. Limited to 30 MW, there would be a payment of €260 per MW/h for wave and tidal generation to incentivise the sector and get it up and running. This will be on top of the €26.3 million that the Department set aside for the sector during the 2013-16 period.

Timmy Dooley (Clare, Fianna Fail)
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I recognise the Minister's understanding of this matter, but too much effort has been invested in onshore wind. Reverting to my colleague's question, we have reached people's full capacity to accept this technology. Solar energy can be captured without the same level of encumbrance on people's ability to enjoy their areas' amenities.

The Minister must move quickly, given the impact of our inability to meet the targets. Breaching them will incur a significant cost, which will have to be paid for by the taxpayer. I appeal to the Minister to get the scheme up and running as quickly as possible. It has been delayed for longer than should have been the case. This is not to suggest that departmental officials are not working to their greatest extent, but we need action. In terms of how we have been reshaping our energy generation, 2020 is approaching quickly.

Denis Naughten (Roscommon-Galway, Independent)
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It is, so we must move quickly. According to the projections available to me, however, we will meet our 2020 electricity targets. The main challenge for us will be heat. For this reason, priority within my Department has been given to the renewable heat incentive scheme, which we want to get operational as soon as possible. Once it is, our focus will move to the electricity sector.

We do not want to make the mistakes that have been made elsewhere. Otherwise, Deputy Dooley would rightly lecture me. We saw what happened when Northern Ireland moved too quickly on the renewable heat incentive scheme. We have seen what has happened in other member states that did not put the proper checks and balances in place. I want to establish a renewables scheme that supports a range of options, is fair and balanced and does not leave the Exchequer or, more importantly, electricity users footing an inordinate cost.

Pat Gallagher (Donegal, Fianna Fail)
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I remind the House that we have fewer than five minutes left. Next is a grouping of three questions. The Minister has prepared a long reply and the two Deputies concerned will be entitled to supplementary questions. I will give the Minister two minutes and he should get through his answer as fast as possible, but it is a long response and I might have to cut him short.