The Micro-Renewable Energy Federation (MREF) has called on the government to support microgeneration in the next Budget including a proposal to remove ESB Networks’ charges on nighttime electricity between the hours of 2:00a.m and 6:00a.m.
This is among proposals by MREF to support the transport shift to electric vehicles (EV), and to encourage homes and businesses to store cheaper nighttime electricity for use during peak daytime demand.
The MREF has submitted its pre-budget submission to government proposing a package of measures to support microgeneration of renewable power to help homes and businesses to deal with the escalating energy crisis.
MREF chairman, Pat Smith, said: “Large energy generators, including wind farms, are having to curtail generation during nighttime hours when electricity demand is low.
“Cutting the charges on nighttime electricity would encourage consumers to use this energy for battery storage, water heating and EV charging and ensure that capacity in the electricity transmission and distribution system is fully utilised.”
Supports for microgeneration
Smith said that government plans to phase out and eliminate grant supports for the micro-renewable energy sector are a mistake and in stark contrast to increasing supports being provided for large-scale renewables in Renewable Electricity Support Scheme (RESS) auctions.
“More, not less, supports are needed for the microgeneration sector to help every home, farm and business address the escalating energy cost crisis facing the country,” Smith added.
Key among its demands in the MREF pre-budget submission is a call to increase, and not reduce, grant supports for microgeneration and to increase the feed-in tariff for microgeneration to at least 17.5c/kWh.
MREF points out in its submission that the offer of 13.5c/kWh, fixed for 15 years, did not provide a sustainable return for microgenerators planning to export to the grid and is reflective of the current costs associated with installing microgeneration.
“Demand for solar PV has increased by 30% globally this year and component costs have also increased significantly with supply chain issues also impacting,” Smith continued.
“The proposed level of grant, technical and tariff support measures outlined in MREF’s pre-budget submission will help ensure that all stakeholders in society can be supported in dealing with the energy crisis facing the country.”
As part of a package of measures requested by MREF in its submission is an increase in the minimum feed-in tariff for microgeneration.
The group said that if business consumers are be forced to pay up to 40c/kWh for daytime electricity then anything less than 17.5c/kWh for surplus energy generated and exported to the grid will be seen as “day-light robbery”.
“As part of the government’s commitments to the microgeneration sector, it needs to ensure that the prices they are offering for electricity are reflective of market realities,” Smith stated.
“17.5c/kWh is the minimum needed at this point to make it economic to install solar PV microgeneration to export to the grid.”