The Micro-Renewable Energy Federation (www.mref.ie), has called for a major overhaul of the planned second phase of the Small-Scale Renewable Energy Support Scheme (or SRESS). responding to a press statement by the Department of Environment Climate and Communications, today said that the proposed renewable export scheme for systems up to 6MW being lauded is not fit for purpose and will not succeed without major changes to its terms and conditions.
Chairman Pat Smith said that the press statement published on Agriland today would have one believe that this is a great scheme claiming some type of premium tariff payment without the need for an auction.
Yet what the department is proposing is to provide a guarantee MWH payment of €130 which will only give a premium if and when the market place price is lower than this.
How can this be called a premium payment when currently the market MWH price for renewables is above that rate. This scheme cannot be just a tick the box exercise for the Minister to tell community groups and farmers that there is a worthwhile scheme in place, Mr. Smith said.
While a guaranteed minimum rate over an extended period is critical for investors the reality is that a €130MWH payment for 15 years falls well short of what’s necessary to leave projects bankable.
Anyone who cares to do the calculations will see that it will take the full earnings from a project over the 15 years to repay borrowings on the investment required to develop the project in-the first instance leaving no return for those who put the project together in the first instance.
Mr. Smith called on Minister Ryan and his department to fully review the Scheme and to ensure that the guaranteed MWH rate is at a level that allows farmers and communities borrow to invest into such projects in the knowledge that they will get a decent return for their efforts.
0 Comments