MREF calls for major overhaul of planned small-scale renewable energy scheme

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 reports that the Department of the Environment, Climate and Communications is working on the detailed terms and conditions of the SRESS which will offer support for export-only small scale and community renewable energy projects up to 6MW at a guaranteed rate of 13c/kWh, MREF has called for a major overhaul of the scheme including a significant increase to its guaranteed export tariff which is below current electricity market rates.

Micro-Renewable Energy Federation Chairman, Pat Smith, said that the SRESS guaranteed export tariff rate of 13c/kWh is being represented as some type of premium tariff payment without the need for an auction. This level of payment will only give a premium if the current marketplace price falls below this level.

Mr. Smith said: “The SRESS scheme cannot be just a tick the box exercise for the government to tell community groups and farmers that there is a worthwhile scheme in place.” 

“While a guaranteed minimum export rate over an extended period is critical for the funding of projects whether via investors or bank debt, the reality is that a 13c/kWH payment for 15 years falls well short of what’s necessary to leave projects bankable.”

Mr. Smith said: “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 needed to develop the project in-the first instance. This leaves no return for project promoters who put projects together in the first instance.”

Mr. Smith called on Minister Ryan and his department to review the Small-Scale Renewable Energy Support Scheme to ensure that the guaranteed export tariff is at a level that allows farmers and communities borrow to invest into such projects in the knowledge that projects will pay for themselves and that they can expect a decent return for their efforts.