The Micro-Renewable Energy Federation (MREF) has called on the Minister for the Environment and his department to publish the economic model behind the new Small-scale Renewable Electricity Support Scheme (SRESS).
The group made the call in order to show farmers, businesses and communities how investing in small-scale renewable projects under this scheme makes economic sense.
The statement comes ahead of the scheme's launch at the end of January, which promises 15-year tariff rates for small-scale solar and wind projects.
Borrowings
MREF chair Ciarán Kells said that MREF’s assessment is that the proposed renewable export scheme for systems up to 6MW only makes economic sense if no borrowings are required.
He said: “Very few if any farmers, businesses or communities will be able to invest into a SRESS project without significant borrowings.
“There is little incentive for participating in a SRESS project if all the income from the project ends up repaying debt and maintaining the project over the 15-year life of the scheme,” he continued.
Economic modelling
Mr Kells said that all stakeholders need to understand the economic modelling behind the SRESS initiative.
“As we called for last August, the minister and his department should immediately release this detail and demonstrate to potential community and business investors how this new SRESS scheme makes for a good return on the money they are being asked to invest,” he concluded.
For more on the industry’s reaction to SRESS, read this week’s Irish Farmers Journal.
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