Written answers

Wednesday, 26 July 2017

Department of Communications, Climate Action and Environment

Renewable Energy Incentives

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
Link to this: Individually | In context | Oireachtas source

1276. To ask the Minister for Communications, Climate Action and Environment if he will report on the renewable heat incentive (details supplied); and if he will make a statement on the matter. [35077/17]

Photo of Brian StanleyBrian Stanley (Laois, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

1301. To ask the Minister for Communications, Climate Action and Environment if he has considered a support scheme to encourage the growth in renewable gas biogas plants with potential to feed into the gas grid; and if he will make a statement on the matter. [35831/17]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1322. To ask the Minister for Communications, Climate Action and Environment his plans for farming- and community-based renewable heat projects to be provided as part of a wider renewable heat incentive programme. [36704/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 1276, 1301 and 1322 together.

The introduction of a Renewable Heat Incentive (RHI) is a commitment in the Energy White Paper and the Programme for Government.  The aim of the RHI is to build on the progress already made in the renewable heating sector and to help reach Ireland’s 12% target by 2020. Provisional data indicates that 6.6% of heat demand was derived from renewable sources in 2016.

My Department has undertaken a detailed economic assessment on the design and cost of the RHI for the industrial/commercial sector in Ireland.  This assessment included a broad range of renewable energy technologies, including the potential for Anaerobic Digestion, biogas which would be suitable in an agricultural business and biomethane injection into the gas grid. The primary focus of the RHI is on large commercial and industrial heat users in the non-Emissions Trading Scheme (ETS) to ensure the scheme is cost effective and ensures value for money for taxpayers.

The final public consultation process on the design and implementation of the new RHI closed in March 2017, and 119 submissions were reviewed by my Department. All submissions to the RHI public consultation are now published on my Department's website. The findings from this public consultation are being used to help inform final decisions in relation to the scheme. At this stage, the overall costs, technologies to be supported and design of a scheme are still under consideration and will require Government decision and State aid clearance from the European Commission.

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1278. To ask the Minister for Communications, Climate Action and Environment if grant aid is available for a specific purpose (details supplied). [35099/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

The 2016 Programme for Government and 2015 Energy White Paper recognise that Solar Photovoltaic (Solar PV) has the potential to provide a community dividend, thereby enhancing citizen participation in Ireland's energy future, and it is increasingly recognised that Solar PV has the potential to contribute to meeting Ireland’s renewable energy and climate change objectives.

At present, Solar PV, for electricity generation, is not supported under any of the existing renewable electricity support schemes operating in Ireland.  However, 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 contribution to EU-wide targets out to 2030. The design of the new scheme is underway, and includes an extensive independent economic appraisal. This appraisal involves comparing the cost of supporting Solar 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 publish shortly a final public consultation on the design principles of the new RESS. 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.

My stated position is that while solar 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 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.

Finally, the Sustainable Energy Authority of Ireland currently provides grant aid for the use of solar thermal heating technology to both large industry and SMEs. Households can also avail of grant support for investment in renewable energy installations, including solar thermal, under the Better Energy Homes Scheme.

Comments

No comments

Log in or join to post a public comment.