Mixed welcome for Government’s solar energy plans
Solar energy promoters have given a mixed welcome to the broad approach outlined by Minister for Communications, Climate Action and Environment, Denis Naughten for a new Renewable Energy Support Scheme (RESS), .
The Irish Solar Energy Association cautiously welcomed the inclusion of solar photovoltaic (PV) technology in a consultation on RESS , the scheme of incentives for renewable electricity generation.
ISEA’s CEO, Michael McCarthy, said: “It is the first time ever that direct policy support from Government for solar has been forthcoming, and in particular we are pleased to see an emphasis on community involvement, consumer value and competitive auctions.”
However promoters expecting an auction process supporting up to around 1.5 gigawatts of solar energy were disappointed.
Instead, solar projects must compete with other technologies in a capacity auction for contracts for difference, according to TLT LLP, a law firm with special expertise in renewables, and other industry sectors.
The lack of technology differentiation and the use of a technology neutral auction are believed to be negatives, in general, for solar energy, according to TLT LLP.
It poses the question if the solar energy sector can compete against other technologies, wind in particular, in an auction process.
The consultation floats the possibility of future auctions being technology specific, which is a more hopeful indicator for the many landowners and promoters involved in Ireland’s estimated 5.4-6 gigawatts of solar energy pipeline projects.
This includes many projects for which planning and grid connection applications have already been made.
Domestic rooftop solar was not mentioned in the Government’s indications of how it intends to subsidise renewable energy in Ireland, and there are no specific proposals for support of micro-generation schemes, due to significantly higher costs, and more market/network reform being required before any incentives could be introduced, according to the Department of Communications, Climate Action and Environment.
According to LK Shields, another leading corporate and commercial law firm with special expertise in renewables, Ireland is one of the few EU countries without any direct support mechanism for solar energy projects, despite successful solar projects being operational in Northern Ireland, and Ireland’s solar resource being broadly comparable with Germany’s, where 7% of the electricity demand is produced from solar energy.
According to LK Shields, over 500 applications have been submitted to ESB Networks for the connection of solar projects in Ireland, with a total export capacity of over 6 gigawatts, and a significant number of the applications submitted are for commercial-scale solar projects.
Many of the developers involved have already obtained acreage.
