Written answers

Wednesday, 28 April 2021

Department of Communications, Climate Action and Environment

Energy Prices

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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164. To ask the Minister for Communications, Climate Action and Environment if he has assessed the report by a company (details supplied) on the way in which the cost of solar energy on the grid may be reduced in future auctions; and if he will make a statement on the matter. [21354/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Detailed work is underway in my Department on the planning and design of the second Renewable Electricity Support Scheme (RESS) onshore auction which will support the ambition set out in the Programme for Government of at least 70% renewable electricity by 2030.

My officials have reviewed the referenced report, which was commissioned by the Irish Solar Energy Association (ISEA). Solar energy projects were a key part of the success of the recent RESS 1 auction and the Programme for Government commits to building on this success by ensuring that a greater share of our electricity needs are met through solar power.

The RESS has been designed to deliver renewable energy projects to the grid at least cost to consumers by driving strong competition. Assessing the wider system costs of technologies  is key to driving the best outcome for consumers and therefore a balance must be struck between de-risking investment for developers and allocating risk to the market. The RESS received state aid approval from the EU Commission in July 2020 and auctions held under the scheme must operate within the framework of the state aid decision.

Connection charges to the transmission system is a matter for the Commission for the Regulation of Utilities (CRU) while planning permission for solar projects is a matter for the relevant planning authority. Responsibility in relation to commercial rates, including for solar energy projects, is a matter for the relevant rating authorities in accordance with the valuation methodology determined by the Valuation Office.

While no decisions have been made on the detailed design of the second RESS onshore competition, all stakeholders will have the opportunity to provide feedback on the design of the scheme through the consultation process on the draft terms and conditions.

A timetable will be published in the coming months which will set out the key milestones in the competition including consultation on the terms and conditions, the qualification process and the auction bidding window.

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