The Small-Scale Renewable Electricity Support Scheme (SRESS) is a proposed initiative aimed at supporting small-scale renewable energy projects in Ireland. The scheme, also known as SRESS, focuses on projects ranging from 1MW to 6MW. Here is a high-level overview of the scheme:
Availability and Duration: SRESS will be available to projects on a ready-when-you-are basis until 2030. Unlike the larger RESS, there will be no auction or tendering process for project selection.
Contract for Difference (CFD): Projects within the 1MW to 6MW range will enter into a 15-year, two-way CFD, similar to the RESS. This mechanism ensures a guaranteed strike price for the electricity generated, providing stable revenues for the project.
Eligibility: To qualify for SRESS, projects must be either 100% owned by small and medium-sized enterprises (SMEs) or 100% community-owned. This criterion aims to promote local participation and economic benefits.
Volume and Community Ring-Fencing: The scheme may have a volume cap, and a portion of the capacity will be ring-fenced specifically for 100% community-owned projects. This allocation ensures support for community-driven initiatives.
Additional Grant Supports: Community-owned projects that meet the eligibility criteria will receive additional grant supports, in addition to the strike price guarantee. Additional grants will be on top of the already-existing SEAI community enabling grant of up to €180k. These grants aim to further encourage community participation in renewable energy projects.
Tariffs: The specific tariff levels for the eligible categories will be announced in the Terms and Conditions (T&C) of the scheme, which are expected to be published in Q4 2023. The tariff structure will be based on the principles outlined in the High-Level Design and will consider risk mitigation measures and inflation exposure.
Curtailment Compensation: Curtailment, which refers to the reduction of electricity generation due to grid constraints, will be compensated for, similar to the RESS. This ensures that projects are adequately supported despite any curtailment events.
Risk Mitigation and Contractual Milestones: The tariff setting process will consider risk mitigation measures, including inflation exposure. While no bond or security is proposed, there will be contractual milestones that projects must meet to ensure their progress and successful completion.
No bond / security proposed, but there will be contractual milestones to meet.
Grid Connection and Planning: Projects will be required to fulfill grid connection and planning requirements unless they are exempted. Compliance with these regulations will be necessary, following the guidelines established by the RESS.
Sources:
The background and new publication on SRESS can be found on DECC website here
For projects below 1MW see SEAI grant process here
