Donnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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391. To ask the Minister for Communications, Climate Action and Environment the way in which the future integrated single energy market will work with existing renewable support schemes for uncompleted REFIT 2 projects; his views on whether projects may have difficulty in obtaining finance from institutions due to uncertainties regarding same; and if he will make a statement on the matter. [47735/17]

Denis Naughten (Roscommon-Galway, Independent)
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My Department has committed to updating the Renewable Energy Feed-in Tariff (REFIT) schemes so that they are compatible with the new wholesale electricity market design on the island of Ireland, the Integrated-Single Electricity Market (I-SEM) which is due to go live in May 2018.

In May this year, my Department published an information paper which outlined a number of options being considered to adapt the REFIT schemes to the new market arrangements and set out the Department’s emerging thinking on the optimal approach.

Following extensive engagement with industry stakeholders over recent months on foot of this paper, the Department intends to shortly publish a consultation paper on its proposed approach with a view to issuing a final decision as soon as possible thereafter.

The introduction of the new I-SEM arrangements is creating the need to align the support schemes supported by the Public Service Obligation (PSO) levy with the structures and rules of the new market. It is not the intention to alter the REFIT schemes in such a way as to undermine investment in the renewable energy sector. However, nor is it the intention to ignore the requirements and principles of the new market design, and introduce a solution that could effectively immunise some 30% of the installed generation portfolio from the new market arrangements, and place disproportionate demands on the PSO levy. The Department is seeking to design a balanced solution to this matter such that the financing arrangements for renewable energy projects are not undermined while at the same time avoiding excessive costs being placed on electricity consumers.