Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

71. To ask the Minister for Communications, Climate Action and Environment if he has met with renewable energy stakeholders regarding publicly expressed concerns about the latest renewable energy support scheme auction; if he will outline the measures he is taking in this regard to ensure that renewables targets are met; and if he will make a statement on the matter. [42054/23]

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Has the Minister met with renewable energy stakeholders regarding publicly expressed concerns about the latest renewable energy support scheme, RESS, auction? Will the Minister of State outline the measures being taken in this regard to ensure that renewable energy targets are met and will he make a statement on the matter?

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

Earlier this week, the Minister, Deputy Eamon Ryan, announced the provisional results of the third onshore RESS auction, RESS 3. The successful projects, mostly solar PV projects, represent a 12% increase in Ireland’s renewable energy capacity from current levels. This is a positive result for the climate, for security of supply and for maintaining our ambitious programme to support decarbonisation of the wider economy. While these are lower volumes than previous auction rounds, RESS 3 targeted mature, shovel-ready projects that all have planning permissions and grid connection offers and are expected to deliver rapidly, by early 2027 at the latest. A fourth, and larger, RESS auction is due to take place in 2024.

The auction results will help to bolster energy security and system resilience, will contribute to emissions reductions over the second carbon budget period and will continue a steady roll-out of renewable energy projects to support our EU renewable targets in 2027 and 2030. The auction volumes underpin the need for a much stronger pipeline of onshore wind and solar projects coming through the grid connection and permitting processes.

It also highlights the urgent and critical need for greater alignment between local plans and renewable energy targets to support investment in and delivery of renewable energy projects.

The average bid price in the auction was slightly higher than in RESS 2 last year. This is attributable to a number of factors, including international inflationary pressures in input costs as well as increases in the cost of capital - this affects borrowing costs, which make up a significant portion of funding for solar and wind farm projects - in line with European Central Bank, ECB, rate rises. My Department and I have met industry representatives over recent months to discuss these pressures and other matters as part of the RESS 3 consultation process. This process will continue through the next auction round. In addition, individual RESS auctions are not the only route for projects. Developers are also free to choose to enter later auctions or take other routes to market, such as corporate power purchase agreements.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister of State's response was shocking and concerning. If that is the official State response, the Government is in denial about where we are in the delivery of renewables. Alarm bells should be going off, but I get no sense from the Minister of State’s response that they are. It was signalled that this would be the outcome, but based on his response, the State is ignoring the alarm bells. There will be less output at a higher price. Of the three wind projects, one of them had timed out from RESS 2. I am concerned about how these projects are rolling over from one RESS into another.

Is the Minister of State concerned by the auction’s outcome and what is he going to do about that? Will he establish a stakeholder forum, as has happened in other countries, to meet stakeholders and address what are real barriers in the system?

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

My primary priority is to ensure there is a sufficient pipeline of renewable energy projects to meet our 2030 commitments. As part of our sectoral emissions ceilings, we are to decarbonise our electricity sector by 75% by 2030. This will require a large quantity of onshore and offshore wind and solar power. We have published an auction programme calendar out to 2025, we have continuous engagement with the industry and I am always available to meet any of the industry players. I am happy to set up a stakeholder forum if that is what they want. Last week, I met RWE, the German offshore wind company that is prospecting to build wind farms in the Irish Sea. In general, I am always engaging. I am keen to ensure that we have a sufficient pipeline. This auction was fully subscribed and the price is reasonable, given that there have been ECB rate rises and inflation. I am happy that we are on the right course and that we will meet our targets for 2030.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I welcome that the Minister of State is willing to establish a stakeholder forum. Sinn Féin has published legislation in that regard. A forum should happen. It would provide a space to address the concerns about the grid, planning and auction design that have materialised following the outcome of the recent auction.

I have tabled another oral question that we will probably not reach. I met community energy companies that were in RESS 1 and RESS 2. Their projects will not be delivered. Instead, they will time out because of ESB Networks and An Bord Pleanála. Will the Government extend the delivery timelines for those RESS 1 and RESS 2 projects to ensure that they do not fall off the edge of a cliff? Otherwise, many of them will time out.

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

Community energy projects are critical.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is not just community projects.

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

I do not want to see all of our electricity generation being supplied by large multinationals. I want to see community energy production. With that in mind, a community energy support scheme has been developed and is likely to be published in the coming months. It will ensure that people feel a sense of belonging and ownership as regards the electricity generated in their respective areas. The scheme is based on the experience in Denmark and Germany. A focus has been put on community energy by the Minister, Deputy Eamon Ryan. Work has been done on a support scheme and is due to be published shortly

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is not just community projects. Will the Government extend the timelines?

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Please, no more interruptions.

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

I am not giving a commitment on that, but I will revert to Deputy O'Rourke.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State. I am just trying to get answers to the questions I have asked.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We could stay here forever and never get through parliamentary questions if we continued like that.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

We never get answers anyway.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I know, but the quality of the answer is not in the hands of the Chair.