Michael Healy-Rae (Kerry, Independent)
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1297. To ask the Minister for Communications, Climate Action and Environment his plans to rectify the price farmers receive for unused units that are transferred back into the national grid (details supplied); and if he will make a statement on the matter. [1189/18]

Denis Naughten (Roscommon-Galway, Independent)
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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 which compared the cost of supporting a range of commercial renewable technologies at various scales including 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. A public consultation on the new Scheme, which closed in November 2017, resulted in over 1,200 responses which are being analysed currently.

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 low carbon economy, in assisting Ireland meet its renewable electricity targets, and increasing social acceptance of and promoting renewable energy projects right across the country. In October 2017 my Department and SEAI hosted a workshop on micro generation which discussed a number of these challenges with relevant stakeholders including the IFA. A micro renewable obligation scheme similar to the one in place in Northern Ireland was one of the policy proposals identified at the workshop and my intention is to shortly develop a policy position on how best to support micro generation and micro generators in Ireland.

The Deputy may also be aware that the 2017 Finance Bill introduced taxation changes vis-a-vis the treatment of agricultural land with regard to solar panels which are likely to also benefit the agricultural sector.