Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

390. To ask the Minister for Communications, Climate Action and Environment his views on whether the deployment of solar, anaerobic digestion and wind power are hampered by indications of a decision on a new support system from his Department which would make them viable. [47733/17]

Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

398. To ask the Minister for Communications, Climate Action and Environment when the new tariff incentives for microgeneration will be announced; and if he will make a statement on the matter. [47841/17]

Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

399. To ask the Minister for Communications, Climate Action and Environment the action he will take to ensure that microgeneration is expanded here. [47842/17]

Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

400. To ask the Minister for Communications, Climate Action and Environment the date by which the details of the next REFIT scheme will be announced; if other forms of feed in tariff schemes will be announced; if it will be expanded to include more types of renewable production; and if he will make a statement on the matter. [47843/17]

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

I propose to take Questions Nos. 390 and 398 to 400, inclusive, together.

My Department is developing a 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 has included an extensive independent economic appraisal. This appraisal compared the cost of supporting a range of commercial renewable technologies, including Solar PV, Anaerobic Digestion, Wind Energy at various scales including small and micro-generation, 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 included analysis of the optimum financial support mechanisms for renewable technologies, in line with the 2014 EU State Aid Guidelines.

These guidelines limit the financial support options for national renewable electricity (RES-E) support schemes. In general and except for small scale and demonstration projects, RES-E support levels must be set through competitive bidding processes and all new RES-E schemes should provide support in the form of a premium in addition to the market price. This support mechanism is very different to current schemes in place in Ireland where all renewable electricity generators within specific sectors get a fixed price for the electricity they export to the national grid. In designing the new RESS, the cost implications for people and businesses have been a high priority and I will ensure that the new scheme is designed in a cost efficient manner.

A cornerstone of the new scheme will be the provision of pathways for increased community ownership, participation in and benefit from renewable electricity projects. This approach will deliver on the 2015 Energy White Paper commitment to ensure communities and citizens are at the centre of the future energy transition in Ireland. Communities are effectively being designed into the fabric of the new scheme and a comprehensive assessment of polices and support measures to increase community ownership from renewable electricity projects has been undertaken. The most effective policies to increase community ownership and participation in renewable electricity projects have been assessed and examined within an Irish context.

Micro generation, which typically involves an element of self-consumption and the selling of excess electricity to the grid, was also appraised as part of the RESS economic assessment. The analysis identified a number of challenges that may need to be addressed before a support scheme for micro generation can be developed. These include a reform of network charges, an assessment of the distributional impact of such a policy decision on the PSO (cost burden sharing), and development of a fair tariff for exported electricity taking the benefits of self-consumption into account. This approach is in line with experience from other EU member states who have attempted to introduce supports for micro generation.

I am committed to further exploring opportunities for supporting micro generation, as I believe that micro-generation could have an important role in Ireland’s transition to a carbon free economy, in assisting Ireland meet its renewable electricity targets, and increasing social acceptance of and promoting renewable energy projects right across the country. My Department and SEAI hosted a workshop on micro generation last month and will develop a policy position on how best to support micro generation and micro generators in Ireland.

A public consultation on the emerging principles of the proposed new RESS was launched on 4th September and recently closed on November 10th. All submissions will be considered in informing the final design of the RESS and following on from this public consultation and review, a final proposal will be brought to Government for approval, including the overall costs and technologies to be supported. Subsequent to a Government decision, a formal application for State Aid clearance from the European Commission will commence.

The Deputy may wish to know that the Economic Report to underpin the design of the new scheme and the Community Report which identifies and assesses renewable electricity community policies and measures have both been published as part of the public consultation process. Both reports and associated data are available on my Department’s website at www.dccae.ie

At this point no final decisions have been made as regards which technologies will be supported under the new RESS. I welcome and have noted with interest the falling costs of some renewable technologies over the past year, most notably Solar PV and offshore wind. Increasing renewable technology diversity is one of several policy objectives the new RESS is trying to deliver and falling technology costs may lead to increased diversity of the renewable portfolio over the medium term.