Approval of electricity production from renewable sources has led to positive impacts in Ireland. This measure is significant in contributing to environmental objectives without disrupting competition. The renewable electricity support is ideal in assisting the transmission of low carbon and environmentally sustainable economy of European Green Deal rules.
Ireland seeks to introduce a new aid strategy known as a renewable electricity support scheme (RESS). The project aims to boost electricity production from renewable sources, including the wind. RESS has its contributions to EU renewable energy targets that will help Ireland achieve its national objective. The aim is to transition from fossil fuels to a 70% share of renewable electricity by 2030.
The RESS estimates a budget of approximately 7.2 to 12.5 billion Euros for the project to run until 2025. However, the aid of electricity production from renewable sources will come from auctions. Modern technology will oversee the sale to ensure a cost-effective achievement of renewable electricity by enhancing competition. Ireland has justifications of preferential treatment for a small portion of solar and offshore wind energy to serve a longer potential term.
All successful RESS applicants shall receive support for 15 years with a premium on top of the market price. For the competitive auctions, they will need to strike a price. If the market price gets below the strike price, the beneficiaries get payments equal to the difference between the two amounts. When the market prices become higher, the beneficiaries will have to make payments equal to the difference between them. The refunds will, therefore, be in the form of reduced electricity bills.
To help support Ireland’s renewable energy targets’ ambitions, RESS gives specific support forms to enhance promotion. Projects that develop from renewable energy communities also benefit from grants to support their development. However, these communities participate in auctions of a particular category to ensure the success of projects. RESS also provides funds to help the communities invest in modern technologies and other sustainable goals for the common good. Some of these goals include education, climate initiatives, and energy efficiency concerning RESS projects.
Ireland has development plans that evaluate RESS and formulate a complete analysis of the cost and benefits. Therefore, it’s able to benefit from innovative measures that support renewable energy communities. There are also guidelines from a commission that aims at protecting the environment and even energy. This commission ensures that electricity prices don’t cover electricity generation costs from renewable energy sources. Hence, only renewable innovations require public support for viable investment.