Josepha Madigan (Dublin Rathdown, Fine Gael) | Oireachtas source

First, it is important to note that the management of new connections to the electricity grid, including community-led energy projects, is a matter at distribution level for ESB Networks - which I note the Senator knows - and at transmission level for EirGrid under rules determined by the Commission for Regulation of Utilities, CRU.

My understanding is that ESB Networks and EirGrid are both independent of the Minister in the exercise of their functions. The CRU, ESB Networks and EirGrid have respective contact email addresses for Deputies and Senators, of which they are aware, should they wish to raise matters of concern such as those raised.

There is currently no intention to make any changes to the terms and conditions for RESS 1. However, if community energy projects were to drop out of the RESS auctions, they will be given the security that they can enter the small-scale renewable electricity support scheme, SRESS, which will be in place from next year and provide a more sustainable long-term support for their projects.

The Minister asked me to explain the background to the new scheme. A community projects preference category has not been included in RESS 3. Rather, support for communities for the development of renewable projects will now transition to the SRESS, which will support renewables self-consumers above 50 kW and up to 1 MW, community and SME export projects between 1 MW and 6 MW, and export-only projects below 1 MW.

The SRESS will differ from RESS in that there will not be a competitive auction for participants to take part in. Through the continued engagement of the Department of the Environment, Climate and Communications with renewable energy communities, RECs, there is evidence of significant challenges that REC projects may face with the competitive, auction-based nature of RESS, along with grid and other barriers to project delivery. SRESS has been designed with these community projects in mind. It will offer such projects a simpler, non-competitive route to market.

The export tariff phase of SRESS, to support small-scale and community renewable projects, is due to be launched in the coming months. Potential applicants will know what export tariff they are eligible for before planning on their project begins. This will give them much more certainty compared with the competitive RESS scheme.

This scheme will align more closely to the experience and capacity of the community energy sector and support a more sustainable delivery pathway to the renewable energy community target of 500 MW by 2030.

A revision of the levelised cost of energy estimates required for small-scale and community-based generation is being undertaken by economic consultants for the Department of the Environment, Climate and Communications to inform the tariff-setting process for the SRESS.This is important in light of recent inflationary pressures and the interest rate rises facing renewable energy projects.

A set of technical and financial supports for community projects are currently available to communities in a community enabling framework under the RESS. Similar supports will be available to community projects under the SRESS.