Written answers

Tuesday, 5 July 2016

Department of Communications, Energy and Natural Resources

Renewable Energy Incentives

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail)
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622. To ask the Minister for Communications, Energy and Natural Resources the reasons wind energy currently is given preference over other more non-intrusive technologies, such as solar, in Government renewable energy policy. [19454/16]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The EU Renewable Energy Directive sets Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. Provisional figures provided by the Sustainable Energy Authority of Ireland (SEAI) show that in 2015  9.2% of Ireland's energy requirements were met from renewable sources. More specifically, the SEAI has calculated that 25.3% of electricity, 6.8% of heat and 5.7% of transport were from renewable sources. The table below summarises the progress made in meeting these targets.

20202015
Overall Renewables Contribution16.0%9.2%
RES-E40.0%25.3%  (of which wind is 21.1%)
RES-H12.0%6.8%
RES-T10.0%5.7%

A number of studies have been undertaken in recent years to assess the economic cost of integrating  increasing amounts of renewable energy into the energy mix. The All-Island Grid Study, published in 2008, assessed the technical feasibility and the relative costs and benefits associated with various scenarios for increased shares of electricity sourced from renewable energy in the all island power system. The scenarios were informed by the resource available, technological readiness of the various generation technologies (including wind) and cost required per generated unit. This study informed the decision to move towards achieving 40% renewable electricity generation in Ireland by 2020. It concluded that - based on assumptions set out in the report - wind energy represented a cost effective source for electricity generation.

My Department has been working with the SEAI, EirGrid and the Commission for Energy Regulation on a further study to assess the costs and value of choosing the path towards 40% renewable electricity generation in 2020.  This work and the related findings will form the basis of a report which, it is envisaged, will be published later this year.

The abundant wind resource in Ireland means that each unit of installed wind generation capacity generates more units of electricity when compared with other countries and hence needs a lower rate per generated unit of electricity in order to recover the overall costs of the project. The existing feed-in tariff, REFIT, which is funded from the Public Service Obligation levy on consumer bills, is a very cost effective support for onshore wind development. This was the finding of a report published by the Council of European Energy Regulators in 2015.

The White Paper on Energy Policy includes a commitment to introduce a new Renewable Electricity Support Scheme (RESS) designed to encourage the development of Ireland’s abundant, diverse and indigenous renewable energy resources, including solar photovoltaic (PV) technology. The Programme for Government also commits to facilitating the development of solar energy projects.

My Department is currently undertaking in-depth economic analysis to inform the cost of a new scheme and, while no decision has been taken on the precise renewable technologies to be supported, the cost and technical viability of solar photovoltaic (PV) - both roof-top and utility-scale - is being examined as part of the assessment process.

Once the detailed economic analysis is complete, there will be an additional public consultation phase on the design of the new scheme. The details of this will be advertised on the Department’s website .

The introduction of any new scheme - including the overall costs and technologies to be supported - will be subject to Government approval and State aid clearance from the European Commission. It is expected that a new scheme will become available in 2017.

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