John Curran (Dublin Mid West, Fianna Fail)
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480. To ask the Minister for Communications, Climate Action and Environment the steps and timeframes he plans to undertake in order to establish a system of micro-generation of renewable electricity; the progress made in developing micro-generation in 2017; and if he will make a statement on the matter. [3283/18]

John Curran (Dublin Mid West, Fianna Fail)
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482. To ask the Minister for Communications, Climate Action and Environment the date by which a renewable energy support scheme will be launched; and if he will make a statement on the matter. [3285/18]

Denis Naughten (Roscommon-Galway, Independent)
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I propose to take Questions Nos. 480 and 482 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, 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. The assessment included analysis of the optimum financial support mechanisms for renewable technologies, in line with the 2014 EU State Aid Guidelines.

The 2014 EU State Aid Guidelines set the framework and extent of 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 (renewable electricity auctions) and all new RES-E schemes should provide support in the form of a premium in addition to the market price.

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 appraisal clearly indicated that the costs associated with supporting micro generation of renewable electricity are greater, relative to larger and medium scale renewable electricity projects. In addition, 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.

Notwithstanding these challenges, 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 in increasing social acceptance of 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. A number of potential options to incentivise a greater uptake of micro generation in Ireland were identified and my Department will work with all relevant stakeholders over the coming months to further develop these options.

A public consultation on the emerging principles of the proposed RESS closed on 10 November. Over 1,250 submissions were received, which are being reviewed and will inform the final design of the RESS. Following on from this, a final proposal will be brought to Government for approval early this year, 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.