Catherine Murphy (Kildare North, Social Democrats)
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113. To ask the Minister for Communications, Energy and Natural Resources if he has conducted a cost benefit analysis regarding the renewable energy support scheme in the context of solar energy and offshore wind; and if he will make a statement on the matter. [29464/17]

Denis 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 sources of energy.

  My Department is currently developing a new Renewable Electricity Support Scheme (RESS) which is being designed to assist Ireland in meeting its 2020 renewable electricity targets and will support in delivering Ireland's renewable energy contributions to the 2030 EU renewable energy targets.

The design of the new scheme is underway, and includes an extensive independent economic appraisal. This economic appraisal involves comparing the cost of supporting Solar Photovoltaics (PV) - both rooftop and ground mounted, offshore wind, onshore wind and a range of other commercial renewable technologies, to ensure that the new scheme delivers value for money for energy users whilst also delivering on the energy pillars of sustainability and security of supply. The assessment also includes analysis of the optimum financial support mechanisms for renewable technologies, in line with the 2014 EU State Aid Guidelines.

My Department will shortly publish a public consultation on key design elements of the new support scheme. Following the outcome of this 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 2018.

I am fully aware of the level of interest in the solar and offshore wind sector in Ireland, by both state-owned and private-sector companies.  My position remains that while solar and offshore wind have a role to play in Ireland’s energy future, particularly in relation to diversification of our renewable portfolio, we cannot have a situation where a new support scheme leads to a disproportionate increase in people’s electricity bills through the Public Service Obligation levy. In designing the new RESS, the cost implications for people and businesses will, therefore be a high priority and I will ensure that the new scheme is designed in a cost efficient manner.