Energy In Agriculture Renewable Electricity Support Scheme (RESS) & Community Co-Ownership

Transcription

1 Energy In Agriculture Renewable Electricity Support Scheme (RESS) & Community Co-Ownership Paul Ahern Paul.ahern@dccae.gov.ie 21 st August 2018

2 Community Energy Policy Backdrop 2012 Policy Statement on Strategic Importance of Energy Infrastructure Community gain 2015 Energy White Paper Support community participation in renewable energy and efficiency projects Facilitate access to national grid for certain renewable electricity projects Funding and supports for community-led projects Examining shared ownership opportunities for renewable projects in local communities Sustainable Energy Communities SEAI Network Develop sustainable energy systems for the benefit of the community

3 Broader Energy Policy Backdrop Clean Energy Package & recast Renewable Energy Directive Agreed EU wide target of 32% RES Support for renewable energy communities and renewable selfconsumers National Development Plan Additional 4,500 WMs of Renewable electricity by 2030 Draft National Energy & Climate Plan (by end 2018) Renewable Energy Policy Development Framework

4 New Renewable Energy Support Scheme (RESS) Commitment - Energy White Paper and 2016 Programme for Government to review costs associated with RES-E generation and to develop a new support scheme Two Studies One Scheme Economic Study Community Study Community characteristic a key component To deliver Ireland s contribution to EU wide renewable electricity (RES-E) target out to 2030 Additional multiple policy objectives to be delivered via RESS EU Framework & State Aid Rules

5 New Renewable Energy Support Scheme (RESS) Economic Study Levelised Cost of Energy (LCOE) Viability Gap Funding Gap Support Mechanism Cost of Support PSO impact Multiple Scenarios modelled

6 RESS Assessment Criteria Assessment Criteria Description 1. Incentivise an efficient level of investment to meet the primary objective 2. Minimising costs to the consumer 3. Allocating Risks efficiently Does the design option incentivise the introduction of sufficient renewable generation to ensure the delivery of Ireland s 2030 RES-E ambitions? Is the design option cost effective, does it minimise impact on the consumer and does it find the right balance between lowest overall cost, and broader policy objectives? Does the design option allocate risks efficiently, such as between the consumer and the renewable electricity producer? 4. Complexity / Clarity Would the complexity of the design option deter investors? 5. EU State Aid Guidelines Is the design option compatible with EU State Aid Guidelines? 6. Impact on the diversity of the renewable technology industry 7. Community and Citizen ownership and Participation. Does the design option lead to a sufficiently diverse technology mix? Does the design option provide pathways for community and citizen participation and benefit in renewable electricity projects in their local area? 8. Security of Supply Does the design option Improve Ireland's security of supply? 9. Other policy ambitions Does the scheme provide potential for supporting broader policy objectives as per the Programme for Government?

7 New Renewable Energy Support Scheme (RESS) Community Study 2 categories of community-owned projects were considered Developer-led : Community owns a small share of the assets (<50%) Community-led : Community own >50% of the assets

8 New Renewable Energy Support Scheme (RESS) Community Study Literature Review / International Experience Irish Stakeholder workshop: Identified barriers / solutions to community ownership and participation 50 experts across 13 different sectors including Finance, Grid, Developers, Community Groups, Planners, Energy Agencies, Suppliers Long List of policies and support measures developed via lit review and intl. experience Short list identified for detailed multi assessment criteria (via stakeholder interviews and workshop) Interaction with DCCAE economic study Ranking of support policies via MCA Public consultation on the proposed high level design including the community support measures Very strong supports for community proposals through the consultation

9 RESS Consultations 2015 RESS Technology Review (800 submissions) - Broader mix of renewables - Inclusion of supports for smaller scale projects - Explore opportunities for community ownership 2017 RESS Design Options Consultation (1,250 submissions) - Very strong public and industry support for Community proposals Circa 50% of questions asked related to proposals to support increased community ownership and participation Very strong call for higher RES-E ambition above maintaining the baseline Strong call for increased technology diversity Very strong public support for micro generation Strong support for competitive auctions albeit with some caveats around nascent technologies

10 New Renewable Energy Support Scheme (RESS) Community Study We now had an Enabling Framework for Community Participation Financial support for community-led projects Feasibility and development grants Delivery of key capacity building measures Trusted advisors / trusted intermediaries Address risks re technical knowledge and capacity Mandatory community benefit fund and register (proposed 2/MWh) Mandatory investment opportunities for communities and citizens (5km-10km) Separate community category in the RESS auction process (proposed up to 10%) This proposal provides opportunities and pathways for increased community ownership of, participation in, and benefit from renewable electricity projects. DCCAE will continue to work with community representative groups to ensure the detailed model developed works for Irish communities and project developers.

11 New Renewable Energy Support Scheme (RESS) High Level Design approved by Government July 24 th 2018 New RESS based on competitive auctions Auctions in line with international best practice Auction roadmap to 2030 Delivering Ireland s contribution towards an EU wide target of 32% RES-E 2030 and closing the gap to Enhancing security of supply and supporting multiple technologies Continued development of an enabling framework for community participation First auction in 2019 Based on independent economic analysis and public consultation

12 Pilot Micro Generation scheme Announced 31 st July 2018 Initially targeting self-consumption, solar PV, battery storage and domestic customers Check eligibility through Grants of up to 3,800 available 6 month review examining broadening the technologies and groups supported

13 Next Steps RESS is now subject to the EU State Aid approval process Detailed auction design is underway Further work to develop the Enabling Framework is required in the H and this will require collaboration with community and industry groups, farming organisations and statutory bodies such as the Commission for Regulation of Utilities (CRU) First RESS auction to take place in 2019

14 Summary There will be greater opportunities for community ownership of RES-E projects under RESS There will be increased opportunities for community participation in and benefit from RES-E projects under RESS There are opportunities for farmers and rural customers to avail of the new SEAI solar PV micro generation grant Thank You