The Micro-Renewable Energy Federation (MREF) has called for a major overhaul of the planned second phase of the Small-Scale Renewable Energy Support Scheme (SRESS).

There are reports that the Department of Environment, Climate and Communications is working on the detailed terms and conditions of the scheme.

This will offer support for export-only small-scale and community renewable energy projects up to 6MW at a guaranteed rate of 13c/kWh.

The MREF is urging the Department to change this proposal, including an increase to its guaranteed export tariff which is below current electricity market rates.

Speaking on the proposed tariff rate of 13c/kWh, MREF chair Pat Smith said that this level of payment will only give a premium if the current marketplace price falls below this level.

“The SRESS 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.”

Fair return

The MREF is looking for a review to the SRESS to ensure that the guaranteed export tariff is at a level that allows farmers and communities borrow to invest into such projects at a fair return.

“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,” Smith added.

“This leaves no return for project promoters who put projects together in the first instance.”