5. ELECTRICITY AND RENEWABLES

Ireland had several feed-in tariff support programmes (REFIT), which closed for new applications in 2015. Projects under REFIT 2 and 3 can still be built until the end of 2019, in recognition of the problems encountered by some promotors to receive planning consent and grid connection. Grid connections have been facilitated through the gate procedure.

The CRU has developed a new procedure – the ECP. The first round was undertaken in August 2018. In the final decision on the ECP, the CRU recognises that the connection policy can have a wide-ranging impact on the electricity system, including facilitating meeting the renewable energy targets.

Ireland is developing a new support programme – the RESS – to bring on projects after REFIT, especially to address the 2020 target. The RESS was approved by government in July 2018. It will set up a competitive bidding process (auctions) and set out a clear roadmap for these auctions to signal to investors that they can rely on the framework in coming years.

The government has identified the policy objectives that the design of the support programme needs to address (e.g. diversification of the technology mix and involvement of local communities to enhance public acceptance of renewable energy infrastructure). Objectives have also been identified that might be better dealt with outside the RESS (e.g. microgeneration, which is being targeted by a pilot programme). Pilot programmes outside the RESS might be an option for facilitating development of less-mature renewable energy technologies (e.g. floating offshore wind or wave and tidal energy), as they might strike a balance between the cost-efficient support programme and diversification of the technology mix in the long term.

Offshore renewables do not yet play a role in the Irish energy system, despite the enormous potential for offshore wind (fixed and floating) and ocean energy, and ongoing research and development for these technologies. There is no planning and consent framework for offshore renewable energy projects and connecting infrastructure beyond the foreshore limit of 12 nautical miles. Such an architecture would be a core requirement for the development of commercial projects. The existing regime for the foreshore area should be reviewed and possibly aligned with or integrated into the new regulatory framework when setting up this new architecture.

Recommendations

The government of Ireland should:

After implementing the I-SEM arrangements for SEM, continue the procedure whereby the regulatory authority (CRU) periodically assesses the competitive conduct of market participants and, where appropriate, proposes or implements measures to counteract or eliminate any issue emerging.

Noting the need to prioritise upcoming challenges for energy policy-making, including those arising out of the exit of the United Kingdom from the European Union, if deemed necessary and appropriate by the government, reconsider again the ownership structure of ESB’s non-strategic power generation plants.

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Implement a policy to facilitate early connection to the grid of projects that are at an advanced stage of planning and financing. For priority access, consideration should also be given by the regulator to community energy projects.

Consider undertaking an impact analysis after the first phase of the smart meter roll-out to inform further deployment.

Ensure the regulator promotes a billing practice that is more transparent for consumers and reflects actual costs.

Co-operate across government and with other stakeholders to get renewable electricity projects built (e.g. work with the regulator on grid connection). Within their respective statutory remits, it should be ensured that local authorities and authorities responsible for planning consent decisions consult with, and take due consideration of the needs of, local communities before making planning consent decisions. Meeting the targets for 2020 and beyond should be a joint effort.

Tap into the potential for offshore renewable energies. These should be considered for financial support in the RESS, and impediments to development such as the planning and consent regime for offshore wind and ocean energy projects beyond the 12 nautical mile limit should be addressed.

References

CER (Commission for Energy Regulation) (2017), Update on the Smart Meter Upgrade, CER, Dublin, www.cru.ie/wp-content/uploads/2016/11/CER17279-NSMP-Info-Note.pdf.

Commission for Regulation of Utilities (CRU), (2017a), 2017 Electricity and Gas Retail Markets Annual Report, CRU, Dublin, www.cru.ie/wp-content/uploads/2018/07/CRU18126- 2017-Electricity-and-Gas-Retail-Markets-Annual-Report.pdf.

CRU (2017b), Review of Competition Bridging Paper, CRU, Dublin, www.cru.ie/wp- content/uploads/2017/12/CRU17336-Review-of-Competition-Bridging-Paper..pdf.

CRU (2017c), Smart Metering Cost Benefit Analysis, CRU, Dublin, www.cru.ie/wp- content/uploads/2017/11/CRU17324-Smart-Meter-Upgrade-Cost-Benefit-Analysis- Information-Paper.pdf.

CRU (2017d), Energy Supply Costs Information Paper, CRU, Dublin, www.cru.ie/wp- content/uploads/2017/10/CRU17291-RFI-Information-paper.pdf.

CRU (2018a), Decision Paper Public Service Obligation Levy 2018/19, CRU, Dublin, www.cru.ie/wp-content/uploads/2018/03/CRU18148-2018-19-PSO-Decision-Paper.pdf.

CRU (2018b), Greenlink Electricity Interconnector Determination, CRU, Dublin, www.cru.ie/wp-content/uploads/2018/10/CRU18216-Greenlink-determination-paper-1.pdf.

CRU (2018c), Electricity and Gas Retail Markets Report Q1 2018, CRU, Dublin, www.cru.ie/wp-content/uploads/2018/09/CRU18210-Q1-2018-Electricity-and-Gas-Retail- Markets-Report-final.pdf.

CRU (2018d), Enduring Connection Policy Stage 1 (ECP-1), CRU, Dublin, www.cru.ie/wp- content/uploads/2017/04/CRU18058-ECP-1-decision-FINAL-27.03.2018.pdf.

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