John Curran (Dublin Mid West, Fianna Fail)
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549. To ask the Minister for Communications, Climate Action and Environment if the upcoming RESS will include technology specific auctions in particular to enable deployment of solar PV generation; and if he will make a statement on the matter. [7360/18]

Denis Naughten (Roscommon-Galway, Independent)
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My Department is developing a new Renewable Electricity Support Scheme (RESS) which is being 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 including Solar PV at various scales including Utility (farm scale) 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 new scheme will be defined by a series of renewable electricity auctions, where the most cost effective projects within an auction structure will receive financial support in a form of a premium, in addition to the price they receive from the market. The scheme will be flexible enough to respond to auction results and deliver key policy objectives as the scheme matures.

It is widely recognised that solar photovoltaic (PV) technology has become more cost competitive for electricity generation over the last few years, not only compared with other renewables but also compared with conventional forms of generation. Furthermore, a recent report by the International Renewable Energy Agency (IRENA 2017) forecasts that solar PV costs will continue to fall by a further 50% out to 2020.

Notwithstanding the level of solar applicants seeking connection to the grid and acknowledging that solar PV does have a role to play in Ireland’s energy future, the cost effectiveness of the new scheme is a key policy objective. I cannot stand over a scenario whereby electricity customers are locked into higher prices now for renewable energy as renewable technology costs fall. While increasing renewable technology diversity is one of several policy objectives the new RESS is trying to deliver, falling technology costs by themselves may lead to increased diversity of the renewable portfolio over the medium term.

Following on from the recent RESS public consultation and review, a final design proposal will be brought to Government for approval in the coming months, including the overall costs, the number of categories and the technologies to be supported. A formal application for State Aid clearance from the European Commission will then commence.

At this stage no final decisions have been made as regards which technologies will be supported under the new RESS.

John Curran (Dublin Mid West, Fianna Fail)
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550. To ask the Minister for Communications, Climate Action and Environment the estimated additional renewable energy generation capacity in energy terms that will be required over the next five years to provide 100% renewable energy for the expanding data centre industry; the number of megawatts of each renewable technology in installed capacity terms which would be required to provide the target and the estimated requirements for wind, solar PV and biomass, in tabular form. [7361/18]

Denis Naughten (Roscommon-Galway, Independent)
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Data centres are becoming a key dimension of electricity demand growth in Ireland. While data centres currently account for less than 2% of Ireland’s total electricity demand, EirGrid have modelled a range of scenarios in their 2017 ‘Tomorrow's Energy Scenarios’ report including one scenario which provides for this to increase to as much as 36% by 2030. Given the quantum of electricity required to power data centres, and the clear preference of project promoters that data centres should be powered by electricity from renewable energy sources, there are clear policy choices to be made in order to meet the demand for additional renewable electricity generation. These choices include the need to align with climate obligations, population projections and energy policy objectives.

Data centres consume very large amounts of energy and have a flat, predictable demand profile meaning that they use the same amount of electricity throughout the day and night and therefore require a range of generation technologies to meet their demand. 

Regarding renewable generation capacity, my Department is developing a new Renewable Electricity Support Scheme (RESS) which is being designed to assist Ireland in meeting its renewable energy contribution to EU-wide targets out to 2030. Following on from the RESS public consultation and review, a final design proposal will be brought to Government for approval in the coming months with the new scheme expected to open in 2019.  At this stage no final decisions have been made as regards which technologies will be supported under the new RESS.

In recognition of the economic benefits that data centres can bring to Ireland the Minister for Business, Enterprise and Innovation in conjunction with other relevant Ministers is leading a cross-government effort to develop a national policy statement on the strategic importance of data centres as part of Ireland’s Enterprise Strategy, taking account of wider energy policy developments including growth in renewable electricity capacity.

While intensified data centre activity will likely play a key role in stimulating demand for increased renewable electricity generation, the impact on the Public Service Obligation levies for consumers must also be considered. It is imperative therefore that Government considers an approach to cost allocation that does not impose disproportionate additional charges on ordinary consumers.