Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

I am pleased to have this opportunity to discuss energy security with the House. Energy security and the current energy crisis are having a significant impact on people's day-to-day lives. The Russian invasion of Ukraine in February 2022 has caused a humanitarian catastrophe and displaced millions of Ukrainian citizens. Even before the invasion began, Russia had been reducing its gas supplies to Europe. The invasion has triggered a decision by the European Union to phase out its dependency on Russian gas, oil and coal imports which has resulted in unprecedented action across the EU. Separate to the war in Ukraine, there are challenges to the security of electricity supplies in Ireland. Concerns over such risks have largely arisen due to the non-delivery of previously-contracted capacity, increasing electricity demand and the increasing unreliability of some existing plants.

I will first speak to the actions we are taking at a European level before turning to national developments. We are working closely with our European colleagues on EU legislative action to address the issues raised by the current energy crisis. The immediate response from Europe was to reduce dramatically the import of fossil fuels from Russia through sanctions. As of today, we are not importing coal and we are importing very limited oil and some natural gas. In parallel with reducing our reliance on Russian fossil fuels, we have introduced three urgent Council regulations to address the supply-demand imbalance by storing gas for the winter ahead; reducing gas and electricity demand and avoiding excessive windfall profits from energy companies.

The gas storage regulation agreed in June of this year requires that underground gas storage facilities in member states must be filled to at least 80% of their capacity before the winter of 2022-23. These gas storage facilities must be filled to 90% of their capacity before the following winter periods. Gas storage in Europe is now almost full ahead of schedule and this leaves us in a much better place for the winter that is coming.

Reducing our gas demand is an important tenet of our response to the current energy security situation. The EU's gas demand regulation agreed this August asks member states to reduce gas demand voluntarily by 15% during the winter period. There is also a mechanism to trigger a mandatory demand reduction target of 15%. However, this does not apply to Ireland as we are not directly connected to another EU member state. The energy security emergency group chaired by my Department is finalising our voluntary gas demand reduction plans.

Energy prices had reached such a high level that it was necessary for the EU to introduce emergency interventions to address them. Emergency interventions include a temporary solidarity contribution based on taxable profits for fossil fuel production and oil refining, a cap on market revenues for specific technologies in the electricity sector which have not seen significant increases in costs which includes wind and solar and a voluntary 10% electricity demand reduction over the winter with a 5% reduction obligation over peak hours, which are generally between 5 p.m. and 7 p.m. in Ireland. This regulation will apply from 1 December 2022 and my Department is working on its implementation.

The Taoiseach attended the European Council meeting on 20 and 21 October to engage in working collectively on Europe's response to the energy crisis. The focus of the meeting was on wholesale gas prices and decisions were made on a number of topics. The Council has asked the Commission to propose measures in a number of key areas.

First is the voluntary joint purchasing of gas. Second is a new complementary gas-price benchmark that more accurately reflects conditions on the gas market. Third is a temporary dynamic price corridor on natural gas transactions on the main European gas exchange, the title transfer facility, TTF. Fourth is a temporary EU framework to cap the price of gas in electricity generation while preventing increases in gas consumption. Fifth is the fast-tracking of the simplification of permitting procedures in order to accelerate the roll-out of renewables and grids and sixth is increased efforts to save energy.

More detailed work is now urgently needed on these topics and Ireland is working closely with its EU counterparts on their development. As Ireland secures its gas mainly from the UK, some of these measures may not immediately have an impact on us. However, they are intended to stabilise wholesale gas prices generally, which is in all of our interests.

I will turn to a national perspective on energy security. While Ireland is faced with broader security-of-supply issues, there are also national circumstances related to challenges within the security of our electricity supplies that have been exacerbated by the Russian war in Ukraine and these need to be addressed. In April 2022, the Government published the national energy security framework which provides an overarching and comprehensive response to Ireland's energy security needs in the context of the war in Ukraine. Within this document, the Government has focused on how it can support households and businesses and, in particular, those most at risk of fuel poverty and how to accelerate the country's shift to increased energy efficiency and indigenous renewable energy systems.

My Department has set up an energy-security emergency group, ESEG, to co-ordinate and oversee our activities and responses with regard to the impact of the Russian war in Ukraine on energy security. The group includes representatives from the Department of Enterprise, Trade and Employment, the Commission for the Regulation of Utilities, CRU, Gas Networks Ireland, EirGrid, the National Oil Reserves Agency and the Sustainable Energy Authority of Ireland, SEAI. Under the guidance of the ESEG, emergency exercises have now been carried out across the oil, gas and electricity sectors to prepare us for the coming winter.

The CRU, which has statutory responsibility for security of supply, has a programme of actions in place to address the security of our electricity supplies. The CRU programme includes a range of measures to mitigate risks for this winter. These measures include a considerable amount of maintenance that has taken place over the summer to ensure that our generation fleet is adequately prepared for the winter ahead; working with the large-scale energy users that have significant quantities of back-up generation in order to access that at times of system stress; the optimisation of grid batteries, the number of which is growing, to provide greater service during times of stress; and enhancing demand-side responses through a number of measures at a domestic and industrial scale.

The CRU-led programme of work on security of supply is supported by my Department and EirGrid. The Oireachtas has already introduced legislation to support EirGrid procuring temporary generation and is currently considering further legislation to support the permitting of these key projects. EirGrid recently published its winter outlook, which states that there is no risk of a system-wide blackout solely due to insufficient generation. However, the system will operate at a higher level of risk than optimal this winter. EirGrid is closely monitoring the situation and is working with conventional generators to ensure that plant performance and availability is maximised, as well as working to optimise our operation of the grid. While it cannot guarantee that there will be no loss of power this winter, it will take every measure available to prevent that from happening.

In June 2022, the Minister, Deputy Ryan, made a recommendation to the Government that a review of why emergency measures are needed to secure electricity supply over the coming winter be produced. Mr. Dermot McCarthy is a former Secretary General to the Government and the Department of the Taoiseach who has been engaged to conduct an independent review. The review will identify factors that have contributed to generation capacity shortfall.

It will also consider factors that contribute to any underestimation of the risk of a generation capacity shortfall; factors associated with roles and responsibilities that may have contributed to the situation; the possible role of the growth in demand from data centres; any learnings that may be relevant to strengthen policy, capacity, governance and operational effectiveness and any further technical analysis that may be helpful. I expect to receive an interim report of the review before the end of the year.

In respect of the medium- to long-term outlook for energy security, my Department is carrying out a review of the energy security of Ireland’s gas and electricity systems out to the period 2030 in the context of reaching net zero by 2050. This review considers potential risks to both our natural gas and electricity supplies and examines a range of measures to mitigate these risks. Detailed research has been carried out by consultants to inform this review and consider forecasted energy demand from EirGrid and Gas Networks Ireland’s annual plans. The review has identified a list of potential shocks to the energy system and a long list of potential options to mitigate these shocks. The long list was appraised against key criteria such as the potential for alleviation of identified shocks, feasibility and consistency with climate ambition to determine a short list for more complete modelled analysis. My Department is seeking feedback on all options, whether they are on the long list or the short list, and we launched the consultation for the review on 19 September. The deadline for submissions is 28 October. I will bring my recommendations on security of energy supply to Government once a review process has been completed.

One of the essential considerations in all discussions on security of energy supply is energy demand. There has been significant amount growth in recent years, including via data centres, and this is expected to continue to grow. EirGrid is now considering applications for connection to the grid on a case-by-case basis and that is in line with the assessment criteria set out by the CRU in November. The criteria include the ability of the data centre applicant to bring on-site dispatchable generation or storage, or both, equivalent to or greater than their demand. In practice, new data centres are expected to ensure their own security of supply and thus not impact on the wider electricity system.

In July, the Government published a new statement on data centres to ensure alignment with Ireland’s renewable energy targets, security of supply, sectoral emissions and climate priorities. Government policy seeks to enable the twin transitions of digitalisation and decarbonisation of our economy and society. For this to happen, digital and climate change policies need to move in tandem. Data centres are core digital infrastructure and play an indispensable role in our economy and society. Data centres provide the foundation for almost all online aspects of our social and work lives, including video calling, messaging and apps, retail, banking, travel, media and public service delivery, such as healthcare and welfare.

Members of this House will be acutely aware that the exceptionally high wholesale gas prices seen since Russia invaded Ukraine have led to an unprecedented increase in electricity and retail gas prices faced by consumers. This in turn has resulted in a very significant increase in the number of people at risk of energy poverty. We are keenly aware of the pressure on households facing high energy bills. To address rising electricity costs for households the Government has introduced a new electricity payment of three €183.49 payments, exclusive of VAT, to domestic electricity accounts which will total €550 to be paid in the November-December, January-February and March-April billing cycles at a total cost of €1.2 billion. An extension of the 9% VAT rate on electricity and gas will remain until the end of February 2023. Budget 2023 also introduced further measures amounting to €2.5 billion to support households with rising electricity and gas prices. The Economic and Social Research Institute, ESRI, has found one-off measures announced as part of budget 2023 will insulate most households from rising prices this winter. Its research shows welfare increases in 2022 and 2023, together with the one-off measures, are large enough to leave the lowest income households better off on average than they would have been had welfare payment rates risen in line with inflation this year and next.

In addition, we are acutely aware of the importance of protecting jobs in order to protect families during this energy crisis and this has been key in the design of the new temporary business energy support scheme. This will provide up to €10,000 per business per month until spring 2023 to help meet rising energy costs. The scheme will support eligible companies by covering 40% of the increase in their energy bills.

Energy poverty is a key concern and my Department recently published a review of the strategy to combat energy poverty. This was alongside a public consultation. The consultation closed on 5 September and the responses are informing the development of a new action plan to combat energy poverty. The new energy poverty action plan will set out the range of measures being implemented across Government ahead of the coming winter, as well as key longer-term measures to ensure those who are least able to afford increased energy costs are the ones who are supported and protected the most. Our intention is that the new plan will be published in the coming weeks. I have also met the CRU and suppliers on safeguards and practical ways to protect pay-as-you-go customers. Electricity suppliers have customer supports available and their hardship funds can be accessed by pay-as-you-go goes customers in the same way as they can by bill-pay customers. The CRU has now instructed all suppliers to put customers with a financial hardship meter on the cheapest tariff available from 1 December. The CRU has also waived the €200 gas meter exchange and site works charge associated with a customer moving from a pay-as-you-go gas meter to a credit or regular bill-pay meter for all domestic customers. The winter moratorium on disconnections for all bill-pay domestic customers for non-payment of account will be from 1 December 2022 to 28 February 2023. Furthermore, the moratorium on disconnections for registered vulnerable customers began on 1 October and will be a place until the end of March. Vulnerable customers registered as reliant on electrically-powered equipment cannot be disconnected for non-payment at any time. As part of its enhanced electricity customer protection measures announced in August, the CRU is bringing in a reduced debt burden on top-ups for pay-as-you-go meters. The new measures mean the debt-repayment levels will reduce from 10% from a previous 25% on pay-as-you-go customers’ top-up payments.

Earlier this year the Government rolled out its Reduce Your Use campaign to raise awareness about energy efficiency and inform people of the financial supports available for households and businesses. The next phase of this campaign was launched recently and urges householders and businesses to ensure they are availing of supports that are in place. The Government is asking people to stay warm and well this winter and to know that help is available if they need it over the coming weeks and months. This campaign is research-led and current research shows people are worried about the energy situation but also that they want advice on how to make the biggest difference to their energy bills. Some of the key partners involved in the campaign are the CRU, the Money Advice & Budgeting Service, MABS, Alone and the SEAI. As part of the multimedia campaign, an information leaflet detailing how to access Government supports and advice on how to be more conscious about energy usage will also be delivered to every home in the country starting from November. As Members can see, the Government has taken swift and extensive action in response to the crisis and will continue to do so. I look forward to hearing other Deputies’ contributions.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The war in Ukraine has exposed how vulnerable this State is to volatility in the international energy markets and reinforced the need to radically reduce our dependence on fossil fuels and become energy-independent. Ireland imports a little over 70% of the energy we use and this is well over the EU average of 58%. Oil accounts for 45% of primary energy needs and gas for a further 34%. All of the oil used in Ireland is imported, as is three quarters of our gas. This highlights our massive reliance on others to keep the lights on and the economy moving. Despite having an almost unlimited amount of renewable energy available off our coast and on our rooftops, the failure to develop this over the past 20 years has significantly contributed to our energy insecurity.

Offshore wind can deliver energy independence and security for our island. Done right, we can create jobs here, bring down the cost of electricity, radically reduce emissions from the energy sector and deliver lasting energy security. The potential to become a net exporter of electricity and green hydrogen to Europe also offers us a huge opportunity to raise significant revenue for reinvestment in climate action. I had the opportunity recently to travel to the Moray East offshore wind farm off the coast of Aberdeen alongside colleagues from the climate action committee. This wind farm alone will produce enough electricity to power 1 million homes. It is a remarkable feat of engineering and highlights the opportunity we have on this island to do the same.

However, we have had a lost decade of development in Ireland. Fine Gael took office back in 2011 and wasted a massive opportunity to spearhead the development of offshore wind over the subsequent ten years. While Scotland was literally laying the foundations, successive Governments here did nothing. There were no offshore auctions, no resourcing of our planning agencies, no port investment, no maritime area planning, no supply chain development, no apprenticeships; the list goes on.

While I welcome the step change since the Minister took over, I am concerned the energy transition is not receiving the primacy of focus it requires. Issues around planning and ports, in particular, are still not being addressed. They are immediate pinch points for the sector and for the opportunities that present. Having raised the matter with the Tánaiste during Questions on Policy or Legislation this morning, I am not convinced the Government is taking it seriously enough or that it is receiving the requisite attention.

The industry has set out in stark terms what needs to be done to accelerate the delivery of offshore wind farms. It has warned that we will miss our 2030 targets if that delivery is not achieved. Unfortunately, I do not see a similar level of concern from the Minister. We need to see our planning agencies resourced properly to reduce the planning delays faced by offshore wind projects. We need robust, thorough and quality planning procedures for renewable energy projects but we also need decisions to be made in a timely manner. The renewables industry has pointed out that the average decision time for a planning appeal is 60 weeks, and 69 weeks for strategic infrastructure developments, versus the statutory objective to determine cases within 18 weeks. This is evidence of a broken system that must be addressed if we are to deliver the scale of offshore wind required.

Last October, approval was given by the Department of Housing, Local Government and Heritage to An Bord Pleanála for an additional eight personnel for the planning authority's marine and climate unit. Despite this, by July of this year, just three of those posts had been filled. Others were not even advertised. This simply is not good enough.

Last month, we heard that just one port in Ireland, namely, Belfast, is capable of hosting the construction and installation of offshore wind farms. If we do not invest in and ready our ports now, we will lose the jobs and supply chain business from these multibilllion euro projects to ports in Britain. We will miss our renewables targets and our emissions reduction objectives. I note that the four Irish ports that applied for EU funding under the Connecting Europe Facility were unsuccessful. This is concerning. The Government must step in to kick-start the investment that is required. We need particular and focused investment in Rosslare, Shannon Foynes and Cork Dockyard. In addition, we need to invest in our electricity grid, develop our battery storage and green hydrogen sectors and reduce the cost of producing renewable energy here. These are the solutions to the problem in the longer term. I urge the Minister of State to prioritise addressing them.

Sinn Féin has been campaigning for years for our solar potential to be fully utilised. The International Energy Agency, IEA, has highlighted that in a period of just 90 minutes, enough sunlight strikes the Earth to provide the entire planet's energy needs for a whole year. While solar energy is abundant, it represents a tiny fraction of Ireland's current energy mix. Sinn Féin published its Microgeneration Support Scheme Bill almost six years ago but little progress has been made since then to roll out solar energy in homes. We want to see solar photovoltaic, PV, panels installed on homes, businesses, schools, sports facilities, community buildings and farms across Ireland to help to cut our carbon emissions and deliver savings for citizens and communities. Installing an average-sized solar PV system on a home can generate 40% of the electricity needs of that household. This is particularly important given the massive electricity costs households now face. The MaREI Centre in Cork has found that solar panels could power a quarter of Irish households. I welcome the Government's solar for schools initiative and would like to see the detail on it.

Last month, Sinn Féin welcomed the long overdue publication of the energy security review. The report short-listed gas storage options of strategic floating liquefied natural gas, LNG, and strategic storage onshore or offshore. These options must be considered in the context of fossil fuel lock-in and ease of conversion to hydrogen or other low- or zero-carbon fuels. Commercial LNG is not short-listed, but is long-listed, due to the fact such a facility could result in the importation of fracked gas and could, furthermore, become a stranded asset. In regard to the notion of a stranded asset, I echo the call made repeatedly by my colleague, Senator Boylan, that Ireland needs to follow the example of the Netherlands, Italy, Spain, Poland and probably France in leaving the Energy Charter Treaty. It is a bad deal that potentially will leave a significant burden on Irish taxpayers if we are left with these types of stranded assets. We have been expressing our concerns for some time about Ireland's lack of gas storage. Currently, 93.8% of the EU's gas storage is filled but Ireland does not have any such facility.

In the time remaining, it would be remiss of me not to refer to one of the other significant challenges facing Ireland We need a conversation on data centres. There has been a policy failure in this regard, including a failure in planning. We need a real discussion on how many data centres we can manage and what our fair share might be. Again, we have seen a developer-led approach rather than a plan-led approach. We must look at where these centres are located, whether they are providing district heating and how they are powered. They are putting huge pressure on the electricity grid and may potentially put huge pressure on the gas grid. They could be powered entirely by renewables if they were prescribed to do so. It could be a different story but it is not.

We need a clear focus on the McCarthy review into what has led us to this point. It is a failure of the Government to bring us to the brink of blackouts for a number of winters. That needs to be investigated. We have had representatives of the CRU before the Oireachtas climate committee, where they pointed to the failure of the T-4 auction. That needs to be investigated and the committee is going to do some work in this regard. There must be accountability. There are question marks over the Minister of the day, the Department, the CRU, EirGrid and others in the energy landscape in Ireland. We need accountability and lessons must be learned. The big opportunity is in renewables. There will be a transition to be managed and it must be done carefully and right.

Patricia Ryan (Kildare South, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The situation in which we find ourselves in regard to our energy security is as a result of the failure of successive Governments to deliver the generation capacity, through power stations, renewables, gas storage facilities and batteries, to meet the very significant increase in demand. The Government is quick to blame the war in Ukraine but, in reality, the increased demand from industry and data centres was already creating a huge strain on our infrastructure. Ireland is the worst-prepared country in Europe for an energy crisis and the possibility of rolling blackouts this winter is a very real prospect. There has been Government inaction on a microgeneration scheme, wind energy guidelines, simplified grant schemes and a just transition. That is why we are facing this crisis.

The energy security review was commissioned by the Government almost three years ago. Its publication was long overdue and we now need to see action. We did not need a report to tell us that years of Government inaction has contributed significantly to our energy security crisis. The Government has failed to match energy supply with demand and to manage a just transition. The biggest failure of all is the failure to develop our massive offshore wind capacity, which has left us reliant on fossil fuels and exposed to extreme volatility in the international energy markets.

Microgeneration is a very deliverable solution. If we deliver the right grants scheme, there will be significant uptake of solar panels in particular. We need to support homes, farms and small businesses to provide their own microgeneration capacity. It would be the gift that keeps on giving.

Delivering energy security is vital to protect workers, families and communities against the growing cost-of-living crisis. In doing so, we can create huge opportunities, especially for young people, in the form of jobs that are highly skilled and come with good pay and conditions. Families are struggling. Last week, I was contacted by a constituent whose level monthly contribution to the energy supplier was going up from €147 to €360.

The reason they are on a level monthly payment is to avoid surprise bills. Their response to the increase was to cancel the direct debit. They are struggling to cope and, sadly, they are not alone.

Small business owners are also suffering. A member of my team showed me a TikTok from an Irish master butcher called Keith Grant. He recently uploaded a video of his business’s electricity bill. It was €2,500 for 25 days. That is €100 a day. Before he has to pay for rates, rent, wages or stock, he has to find €100 a day to keep the lights on. He says that the scariest part about it is that he made every efficiency he could. He put lights on sensors and water heaters on timers. He is fearful that he will lose his business. He is not alone. I spoke to a local business owner who is giving his business until Christmas. It is make-or-break time for him. It is make or break for this Government, which is completely out of touch and does not understand the scale of this crisis or the urgent need for action.

Yesterday, I mentioned energy- and water-hungry data centres. Data centres now consume as much electricity as all of the houses in rural Ireland. While demand for electricity has shot up, successive Governments and their agencies have failed to deliver electricity supply. We have the report, we know what to do with it but we need to act now before its too late.

Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We need energy for heat, light, transport, communications, agriculture and every aspect of our daily lives. Over recent months, we have become much more aware of the importance of energy security following the illegal invasion of Ukraine by Vladimir Putin and his use of energy as a weapon. In recent weeks we have seen him target energy facilities and water supplies in Ukraine. Putin’s use of energy as a weapon is not just affecting Ukraine; it has sent shock waves across Europe. Ireland has been affected, so it is timely that we are having this debate on energy security. Energy security has become a tight balancing act between supply and demand. The crippling cost of energy is having a detrimental impact on householders and businesses. The market conditions for energy have been radically altered following Russia’s illegal actions in Ukraine.

Aligned with this are our climate change targets, which mean we must radically reduce carbon emissions across each sector. County Clare has a long, proud history of producing electricity. It has more than played its part in providing energy for the entire country. The first major energy generation project on this island to provide electricity was in Ardnacrusha. In its early years, Ardnacrusha provided for more than 90% of our electricity needs. To this day, Ardnacrusha still feeds electricity into the national grid. This project was ahead of its time. Earlier this year, I had the pleasure of accompanying the Tánaiste on a visit to the plant at Ardnacrusha. We were given a tour and an aerial overview of the development of the facility. Following the oil crisis in 1973, the then Government decided to reduce our dependence on oil for electricity generation and started construction on the coal burning station at Moneypoint in County Clare. This has produced safe electricity for generations and provided for up to 45% of our electricity needs. In recent times, over the past year in fact, Moneypoint has come to the rescue of the country. Its life has been extended and it is providing a huge amount of electricity again.

The story does not end there. A number of interested parties have been drawing up plans to invest in green energy projects based in the Shannon Estuary and off the coast of County Clare. These plans include floating offshore wind farms, wave generators and the manufacture of green hydrogen. These projects have the potential to be transformational. It is important that the Government helps green energy companies to grasp these opportunities. I acknowledge the establishment of the Shannon Estuary Economic Taskforce. I look forward to it reporting and an action plan being rolled out to support the development of global leading green energy hub in the Shannon Estuary.

The Government needs to listen to green energy stakeholders and bring about the necessary regulatory reform that would pave the way for the development of high-scale green energy projects delivering jobs and opportunities for investment in west Clare and securing our energy needs into the future. The Moneypoint power plant site with its high-powered connections to the national grid would provide an ideal base for these operations. I have engaged with stakeholders involved in the green energy sector. I have met them and they have a number of specific requests particularly in the area of floating offshore wind turbines. I ask the Minister to engage with them. There is a need to accelerate credible projects to meet our 2030 targets. Currently, there are proposals to deliver 28 GW of offshore wind. The target is just 7 GW by 2030. We need to prioritise those projects and make sure they go ahead.

There are issues relating to licensing. I refer, for example, to a foreshore licence application that has been waiting two and a half years to be signed off on. That is just not good enough. In other jurisdictions, such as, for example, the UK, that can be done in a matter of weeks. There is a need for a whole-of-government development plan for the development of floating offshore wind projects. I encourage the Government to do that.

Being at the end of the pipeline when it comes to the European gas grid could mean paying a premium price for not being in a position to build up reserves during the summer months as our European partners have done. We have climbed a mountain to secure gas supplies for this winter, but now it is time for us to make decisive decisions to secure our gas supplies, at an economical price, for the years to come. These decisions must be made on the best scientific advice available and must not be based on ideological objections. This summer we saw all the other European countries aim to build up their gas reserves to 100% capacity at their storage facilities. We all know that they managed to build up their reserves to more than 85% before the gas from Russia ceased to flow due to alleged technical faults with the pipelines and a mysterious explosion in the Baltic Sea. We have no intelligence or knowledge as to whether the pipelines will be operational next year. If they are not, we will once again be at the end of the queue, especially if we do not have any storage capacity.

There have been at least two serious applications to build an LNG processing and storage facility on the banks of the Shannon Estuary. This proposal was first made nearly 20 years ago. It progressed through the planning process at a snail’s pace. Investors had the foresight 20 years ago to see that Ireland was going to have a problem if it did not construct a gas storage facility. That was then, but we are on the cliff edge now. Will we escape blackouts this year? We probably will, but at enormous cost. We cannot guarantee to have energy security over the next ten to 15 years if we do not take the urgent steps now to secure our energy supplies.

Another factor that needs to be examined is the feasibility of converting Moneypoint power station to gas. If there was a safe, secure LNG base nearby on the Shannon Estuary, that would be a possibility. Recent reports have highlighted possible shortages in our generation capacity at peak demand times and this has caused considerable concern for the elderly, those living alone, particularly those with backup power systems for medical support units based in their homes, and for those operating nursing homes and medical facilities. How will they be protected? I am not just talking about the risk to these networks if we have power outages for energy shortages but the damage occurring to our electricity networks following storms which seem to be becoming stronger and with more frequency every winter.

We have all transferred from our old landlines to a more digital world of mobile phones and the Internet in order to communicate.

These are vital and essential to rescue operations. It is vital we have a backup system to power these services in emergency events. If we have power outages, will these be managed in the same way as in the past, with different zones being at risk for rotating three-hour periods?

Do the authorities that are advertising for vulnerable customers to contact their electricity suppliers to register their vulnerable concerns need to register with EirGrid, which manages the entire network? What will happen to these consumers if power outages are necessary? The Minister of State might let us know what plans are being put in place to keep us up to date.

Has the Minister of State or any of his officials conducted any studies on the effects of not adopting winter time next week or in subsequent years on our peak hour demands between 4 p.m. and 7 p.m. and whether it would reduce our overall demands for the entire winter?

I am also picking up a fair degree of cynicism regarding the installation of smart meters in our homes. Most of the benefits seem to be accruing to the suppliers and may even put the consumer at some disadvantage. We may need to update the software to show the consumer their consumption in previous years to see if they are reducing or increasing it. We might also examine the feasibility of providing this information on our bills so we can work on individual climate change targets. At a national level, we might also provide more user-friendly graphics on our energy dashboards to show how we are meeting our voluntary targets of reducing our consumption by 15%.

I think we were all disappointed this week by the figures on completion of retrofitting projects. I am a great believer in the use of the carrot along with the stick. Would the Minister of State consider a possible property tax reduction of 5% for five years for those who completed retrofitting their homes and the same for those who have installed solar panels on their homes?

I welcome this debate, but I am afraid we will be discussing this complex subject of energy security regularly over the years ahead.

Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I might have to agree with Deputy Carey. We may be dealing with this issue of energy security for quite a time to come. This is another one of these multiple overlapping crises. Obviously, we have energy security issues across Europe with supply, particularly gas, a situation that has been absolutely beyond exacerbated – I am not sure there is a term I could choose that would adequately explain it – by what Vladimir Putin has done by invading Ukraine. This is one of the weapons he has introduced to this particular conflict.

That is a particular issue and it has taken the European Union a considerable amount of time to show a greater level of imagination and to get to grips with the reality. It is only now at this stage we are talking properly about windfall taxes, caps and all the measures that are necessary to mitigate the huge pain that there will be so we can keep the show afloat, which was the idea through Covid, and not accidentally give a win to Vladimir Putin.

We all know we would be in a much better situation on an international basis had greater moves been made to move away from our addiction to fossil fuels and towards a greater use of renewables. We would be in a far more sustainable place regarding emissions and the climate and we would not be susceptible to the situation we are in now. We need the European Union to move better, faster and more quickly. We also need Government to do what it can in relation to that.

Let us also accept we have a generation capacity problem in this State. We had an auction system that obviously did not work and we need to make sure we have something into the future that is better. We had a problem in the sense we did not have the laws, the legislation and the capacity to be able to deliver the backup generators. Therefore, we changed the rules and regulations. There was a huge amount of weaknesses related to the Commission for Regulation of Utilities, CRU, and others and we will have them for next winter – not for this winter. I hope we are not dealing with a severe situation regarding blackouts. We all know the related difficulties and everyone has mentioned the dangers for those who are very medically vulnerable. I know there are certain safety procedures put in place, but we need to look at that grouping we term as “vulnerable” and ensure we all have the necessary protections.

We know the huge issues related to pay-as-you-go customers and the fact they are not protected from disconnections. We obviously need all those pieces in place. However, we have to recognise the absolute failures that have occurred from a point of view of generation. We have to get that show on the road and make sure we do not continue with these sort of disasters.

On making sure we have a fit-for-purpose, sustainable system, it goes without saying that the future is renewables. It is particularly solar and, even more so, wind and offshore wind. The huge delays were mentioned earlier. I think it is 69 weeks with An Bord Pleanála regarding major infrastructural products. That obviously is not going to wash. We know the Attorney General review is ongoing, but we will need, as they say, the colour of his money for whatever changes are necessary to bring our planning laws, regulations and protocols into the modern age in order that we can offer the same sort of planning infrastructure as can be offered across Europe.

That is not to say there is not a huge amount that will need to be done by interacting with communities. Sometimes, when all sorts of developments are done from that point of view, they actually have fewer objections and get to that necessary place faster. We need to make sure that happens.

We also need to make sure we are actually resourcing these agencies. Deputy O’Rourke spoke about the fact we have not filled even those positions that have been offered in the very specific climate unit in An Bord Pleanála. That does not make any sense. We need that to happen as quickly as possible.

There has been a shift change and we are moving in the right direction. The problem is we are behind time and are facing into major issues.

It would be remiss of me not to bring up a particular issue we have spoken about previously, that is, those using communal heating systems. We need a bespoke solution, whether that is the temporary business energy support scheme, TBESS, or an alternative that provides a reprieve to those companies that is then passed on to residents. I know the Minister of State has an interest in it.

Jennifer Whitmore (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

Before I begin, I want to welcome three very special guests in the Gallery this evening, my daughters Caoimhe and Aoife and their friend Ciara, who are students from St. Laurence’s school. I had no babysitter today.

Cormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

They are very welcome.

Jennifer Whitmore (Wicklow, Social Democrats)
Link to this: Individually | In context | Oireachtas source

They will behave very well. It is important we recognise that a lot of time when we talk about energy security, we talk about immediate needs and the here and now. Obviously, that is what people will be the most concerned about – this and the following winter. However, we also need think ten or 20 years down the road for when these children, their friends and children like them are adults. What kind of Ireland and energy security will we have at that point? Will they get to live in an Ireland that has secure, safe and sustainable energy? That is where we want to be going with this. The discussions we are having today are not just about what happens in the winter coming but also the kind of future our communities, business and residents will live in. That is something that we need to be conscious of.

I only have six and a half minutes to talk and energy security is obviously an incredibly complex issue. I will not even touch on the needs. I want to think about it as the systemic issues that I see – not about specific things but the overarching problems we are facing. There are three issues I want to highlight.

The first is the level of accountability. There needs to be a single entity in charge. What we have seen, whether at the climate committee, in the media or in any of the debates and discussions on energy security, is the CRU, EirGrid and the Government pointing at each other and saying it is the fault of the other. We had that at the climate committee and then we had the Taoiseach saying no one made him aware there was an issue. The first thing we need to get on the record is that it is the responsibility of the Government to keep the lights on in this country for businesses and homes. That is where the buck stops and that needs to be acknowledged. The CRU and EirGrid are statutory entities set up to assist with that but, fundamentally, it is the responsibility of the Government to do this.

The second thing is we need to acknowledge what the problem is. There has been a failure to do so through many years. There has been a tension between energy security, needs and planning, and trying to bring in enterprise, business and job opportunities to the country. There has been a complete imbalance in that regard. The focus has been far too much on bringing in certain corporations or enabling certain developments in the belief they are necessary for job creation, but then fundamentally undermining our ability to keep lights on in businesses. That results in significant reputational damage for other businesses. There has been an imbalance in that regard. Since 2017, we have been warned that the grid was going to be under pressure, and that has increasingly come to pass. We have not seen the necessary level of investment by successive governments or the required level of implementation or delivery on the grid through those years, so capacity has essentially stalled while at the same time we have had an incredible growth in demand. The majority of that growth is coming from large energy users such as data centres. That has not been acknowledged as a fault or flaw in Government policy to date, and that is important.

In addition, we need to look at what those big problems are and turn them into the solutions. There are a number of data centres that have incredible generating capacity. Many of them can produce their own energy. In the interests of the immediate energy security of the country, I ask the Minister - I do not know whether this has happened yet - to ensure the CRU or the Department speaks to the data centres, particularly the big ones, to find out whether they have capacity that can be made dispatchable to the grid to assist as a short-term measure. There is infrastructure in place and that is something that is worthwhile doing. It may prevent the need to build or create additional generation. In the context of the capacity and problems of data centres, those centres will account for 28% of electricity usage by 2030, which is a considerable challenge. We are aware the consumption has already been a challenge. My party and I do not believe that was managed properly, unfortunately. A year and a half ago, we tabled a motion seeking a temporary moratorium on data centres until all this was sorted out. Unfortunately, the Government did not agree and we are now suffering the consequences of that.

Another issue that has been highlighted in the EirGrid all-island capacity statement this year is that while data centres will account for 28% of electricity demand by 2030, electric vehicles and heat pumps will amount to 13% by 2030. It will go from 2% to 13%, which is quite an increase and will represent a significant proportion of electricity demand. The Social Democrats has repeatedly made the point to the Government that there is a need to invest now in solar. Every house in the country should be generating its own electricity that would assist with and mitigate any of the demand risks that will come from EVs or heat pumps. EVs can act as batteries on an individual home basis. We ask the Government not just to come out with phrases such as "rooftop revolution" but to drive a rooftop revolution, put the money behind it and make sure people can afford to do it. We believe the Government should pay, especially for those who would meet the criteria for the warmer homes scheme. The Government should roll these schemes out quickly through entire estates. An estate of houses could be done in a matter of weeks. The Government should get it done. It would help people this winter and it would help the grid in ten years' time. The Government needs to focus on solar. I hope the Minister will bring that back to the Department.

Cormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the VIPs in the Gallery. They are intrigued. It is lovely to have them here. I wonder if they know they will be on the record forever more. That is important.

James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

They would probably talk more sense than some of us Members.

Cormac Devlin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Deputy took the words out of my mouth.

James O'Connor (Cork East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I have competition for the position of baby of the House this evening. I welcome Deputy Whitmore's family and their friend to the House. It is fantastic to see young people having an interest in politics.

I welcome the Minister back to the House. Obviously, he was undertaking important Government business elsewhere. We are here to discuss the extremely serious issue of Ireland's energy supply. Unfortunately, the ten minutes I have been allocated are not enough to go through the issues in that regard.

One problem is that there is an ideological difference within the Government in respect of the best solution to this problem. As a person in my 20s who, I hope, will live a long life, I can comment on what the future will look like when it comes to the climate and the environment, but I understand that we have a lot of work to do to make the transition to green energy possible and to do so in a sustainable way while trying to get there as quickly as we can. In saying that, however, there needs to be a recognition that gas is an exceptionally important fossil fuel. It is immensely consequential to power generation in this country but, as a country, we are hooked on international sources to supply our gas. I find it hypocritical that, as a State, we are happy to import fossil fuels from dictatorships and autocratic governments around the world but, when it comes to our own supply of energy, we are not granting licences at the rate we should be, given the crisis - not an emergency but a crisis - we could encounter in the coming months. Despite some of the commentary on this issue, the environmental ramifications of that issue have not been fully taken into account.

I come from an agricultural background. Every litre of milk that comes from cows in this country to be processed for skimmed milk powder for export is brought to driers, all of which are gas-powered. Industry that provides hundreds of thousands of jobs in this country is heavily reliant on gas. As a country, we are not allowing the exploration of existing gasfields or issuing licences for new test wells to be drilled to establish what is off the shores of this island. I appeal to the Minister to find the good sense to tackle this issue. I am dumbfounded as to why it has not been done already. We need to think about what could happen if there is a crisis on the Continent over a lack of gas supply because, although there is strong camaraderie within the European Union, when it comes to supply we are competing against some of the most industrial economies in the world. They do not have the potential security of supply that Ireland could have if the Government were proactive about exploring what is off our shores when it comes to gas. This is the great risk. I do not want to fail to express this concern today when there is the potential for a major crisis to erupt two years or two months from now, possibly as a result of an exceptionally cold winter in Europe, with resulting strong demand for gas for heating in addition to the manufacturing needs of economies such as Germany and other strong industrial economies on the Continent. In such a situation, Ireland could be left high and dry. We are connected to the gas network of the United Kingdom but, from my perspective, it is just not good enough that we are not making best efforts to establish what is off the shores of the country.

What also needs to be called out is the utter hypocrisy of some of what has been included in the Government review about the potential use of the Kinsale gas field for gas storage. Are we now saying we are fine with gas being brought in from abroad and stored by being pumped into the ground but are not happy to allow a licence for exploration for gas 30 or 40 nautical miles east or west of the existing gas field to be granted? I would like the Minister to give some thought to that and respond to me on it in writing. It is something that had to be said.

There are so many energy issues that do not make sense, given the crisis in which we find ourselves. In terms of industry, for example, people are crying out in Cork for the installation of private energy infrastructure for energy generation on site. This is particularly the case when it comes to renewables but ESB Networks is tying itself up in regulatory knots. In my view, this suits the company from a revenue point of view, when it comes to the provision of private wire. It is my understanding that there are only six weeks in the year when it accepts applications for that system. I know the Minister is working on this but quite frankly, if we end up in a situation where we have blackouts - please God, that will not happen and I know work is being done to try to avert that - then the CEO and senior management of ESB Networks will have exceptionally serious questions to answer. I want to warn them that the Oireachtas, if it has good sense, will pursue this particular issue. It is absolutely unacceptable in this day and age, when we have so much discussion about and potential investment in renewables that the network operators of our electricity grid, EirGrid and ESB Networks, are not allowing ease of access for those who want to put in place their own energy generation systems on site. I refer to what are described as large energy users, LEUs.

In terms of the demands on the grid, we have to understand that as time goes on, the demand for energy is probably going to continue to grow. We have a growing economy and population. In that context, the current rate of progress with regard to offshore wind is not in any way acceptable. I am very hopeful and am putting a lot of faith in the review into ways to improve the planning process in this country that is due to be published by the Attorney General . It is absolutely essential that we deal with the ongoing issues when it comes to the granting of permission for offshore wind projects in this country. In this century, it is possibly one of the greatest economic opportunities for the State to invest in. We were world leaders in this area during the Celtic tiger period but have slipped dramatically down the rankings as the years have passed. We have watched other countries grow and expand their offshore industry, which could potentially contribute billions of euro to the economy.

I also want to call into question the status of the EirGrid interconnector. The need for such an interconnector has been discussed at length for more than three years. I want to make an observation rather than a criticism. After all, we are in a Chamber where debate and free speech is welcome. We have heard some strong contributions from the Opposition today criticising the Government about a lack of energy generation in this country. However, the point must be made that the main Opposition party had many activists involved in protests against the establishment of the Corrib gas field ten or 15 years ago.

I ask Government to take a look at different sectors and identify what it can do to improve their circumstances. It must also deal with the backlog at ESB Networks which is not providing enough private wire for the provision of on-site renewable energy generation by LEUs. That must be dealt with urgently. I also want to very clearly communicate to the Department that the unknown blockage when it comes to the granting of licences for exploration for gas off our shores needs to be dealt with because it is quite hypocritical that we are happy to import gas from abroad but not to drill for it off our own shores. From a security point of view, we are putting our economy and society at risk by not doing so. I speak from the perspective of short to medium term solutions to the problems facing us, including growing political instability across the world. I fully believe that one day we will achieve our targets for reductions in the use of fossil fuels in this country but we have to be realistic about the process of getting there. What I see at the moment, I do not like. Industry is furious. People working in renewable energy companies are sharply critical of the slow pace of development in Ireland. There is a serious urgency around the planning reforms that will be published next week. I hope the Minister has been engaging diligently with the Attorney General on this work and that we will see further work being done to expedite the process, in addition to some of the steps that have been taken already.

I also want to acknowledge the fantastic work that was done through the budget to relieve some of the pressure on people and on business. Small businesses, in particular, are under extraordinary pressure. The household credit of €600 will make a difference to households this year but I also want to make the case for businesses like supermarkets and butchers, some of whom have contacted me in the past few days. They would have quite large energy bills and, in some cases, their bills are well in excess of €100,000 per annum. They have seen drastic increases in the cost of gas and electricity and their profit margins have been utterly destroyed. We need to be very mindful of the knock-on consequences and damage this could cause, particularly in rural Ireland where the situation for business and enterprise is already quite delicate.

I would appreciate the Minister responding to me on these issues.

Chris Andrews (Dublin Bay South, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The energy security problems we face are the product of the Government's failure to prepare and plan in advance. When one looks at the housing crisis, the pressure around accommodating Ukrainian refugees, the mismanagement of our health system and various other issues, it is not surprising that the Government has failed to plan in advance in relation to energy security. The Government has failed to deliver the necessary power stations to deliver significant generation capacity through renewables and gas storage facilities. It has been clear for years that our energy demand would increase substantially. The war in Ukraine has made it painfully clear how poorly developed we are in terms of energy security. However, we are much more fortunate than many of our EU partners. We have very little dependence on Russian gas. Our gas comes from the North Sea in Britain and the Corrib gas field.

Energy demand has shot up by 12% in the past five years and this Government's red-carpet policy towards data centres has fuelled much of this demand. It is staggering to think that data centres now consume as much electricity as every house in rural Ireland. Since 2016 EirGrid has been warning of an increasing tightness between supply and demand but the Government spent six years not listening. There was a clear failure to put a plan into action in order to be prepared for what we are now facing. The energy crisis has clearly exposed the failings in the Government's approach to energy, including the rampant privatisation of our energy sector, with State assets such as Bord Gais fully sold off. Now we see record profits being reported by the likes of Bord Gais in the middle of this crisis. The windfall profits of energy companies should be going back into energy development, into developing secure and sustainable energy in communities across the State. Instead, these profits are lining the pockets of shareholders while ordinary workers and their families are struggling to pay huge energy bills.

The ESB has been at the core of secure electricity generation to every corner and community in this State. For many years, our energy prices were among the lowest in the EU until the ESB had to set prices higher to encourage competition in the market. As a result, electricity prices have gone from being among the lowest to now being among the highest in the EU.

This is a State-owned company making record profits in the middle of a cost-of-living crisis. It is hard to believe. Just like in housing, the energy market has failed to provide lower and more competitive prices for workers. We have already seen moves in EU states such as France to bring energy companies back under State ownership. To put an end to the price gouging we are currently experiencing, we need to see this Government take proactive steps in energy development and not wait until the last moment to react.

Achieving energy security can create massive opportunities for communities across the island, especially for young people, in the form of highly skilled jobs with good or very good pay and conditions.

Working families across the State need to feel secure coming into this winter. Across the State more than 200,000 households are in electricity arrears. Thousands of families are being pushed to the limit paying these bills. This is a clear result of failure by this Government to plan for our energy security. Many people using pre-pay meters are given no choice by their landlords, and now some are being left to ration their electricity. I hear from constituents that the process of switching from pre-pay is effectively impossible. They wait over an hour to try to speak to an operator only to be suddenly disconnected. Most people do not have the free time to sit around waiting for over an hour in the hope of speaking to someone. It is simply not good enough. Workers and families need to feel safe and secure during this coming winter.

Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the opportunity to contribute to this debate on energy security. My interest in this area was particularly heightened following the decision of An Bord Pleanála some years ago to reject applications by ESB to co-fuel peat and biomass at Lanesborough and Shannonbridge. That decision brought forward and cliff-edged the decarbonisation of Bord na Móna by some eight years. Its impact on Offaly and the region was and is severe. It forced me at the time to ensure that the Government ring-fenced carbon tax revenue and contributed to a just transition fund to assist with fuel poverty-proofing. It also meant that the peat regions of Ireland would be included in the then coal regions transition fund initiated by the EU together with the national development plan, which matched that funding last year, totalling €170 million. Efforts are ongoing to ensure that such funds can have the effect required and desired. As a representative in the area, I personally will continue to insist that the body charged with administering those funds, namely the Eastern and Midland Regional Assembly, will have at its heart a commitment in agreement with Offaly County Council's proposal that recognises the areas and counties most impacted by this acceleration and by job losses and their impact on the local economy.

Our country's energy security, provision and potential today are, unfortunately, far removed from where they should be. Yes, of course, many will be quick to say that our commitment to renewable energy resources is succeeding and that 40% of our electricity generation comes from renewables. That may well be the case but it is predominantly by virtue of land-based wind provision. What happens when that wind blows excessively? There has been inadequate battery provision to store the excess. When the wind does not blow, with little or no battery storage, as I have alluded to, the system relies on coal and gas. Much of the plant charged with that responsibility is outdated and expensive to maintain, and the wholesale energy market is then heavily weighted in favour of those providers. That ensures that prices are excessive and studies have been provided to prove that. That was the position in advance of the unfortunate war in Ukraine, which has created further pressures, obviously.

What, then, of the original promises and commitments that were made relating to the type of provision we expected to see in respect of solar energy; the farming community's commitment and the potential there that is yet to be realised; industry; and community schemes, which are also untapped in the way envisaged initially? All of that, I am afraid, reflects poorly on the Department, EirGrid and the CRU. We know that when auctions for renewable projects were held over the years, some were won but not followed through and provided. In 2016 four specific auctions were won, but in 2021 they were reneged on and only fines were paid, with our grid being the one to remain challenged, with the loss of that 450 MW, not to mention the 200-plus MW in respect of Lanesborough and Shannonbridge. As I said, that ensured that the grid remained challenged. It ensured that the wholesale market was further deprived of fair and relevant competition, ensuring high prices for business and consumers.

Another failure, unfortunately, can be laid at the doors of those within the Department, EirGrid and the CRU, again before the war in Ukraine became a reality. Following the failure to meet energy provision targets, there was a realisation in 2021 of the need to provide for winter 2022. It was what could be described as a mad scramble for energy provision to meet this winter's demand. EirGrid bought land in Huntstown for a reported €10 million. The Planning and Development Act was amended in June 2021 to allow semi-State providers not necessarily to have to apply for planning permission, which again contravened and contradicted the sort of competition that would have been expected in that marketplace. There were talks of the ESB providing emergency generation at North Wall. That was abandoned despite the making of a €10 million down payment, a fact which is yet to be fully contradicted, highlighted or relayed before either House or any of the committees here. That stalled because a competitor challenged the questionable process in the High Court, with the conclusion amounting to the reality that there was a failure to provide the extra power, the extra potential, that was required to meet the demands we are now witnessing this winter. That too, I am afraid, is a failure on the part of many within the Department, EirGrid and the CRU. We are now aware that EirGrid is procuring and purchasing up to 650 MW for winter 2023, supposedly relating to sites at Huntstown, Tarbert and Shannonbridge. I assume that those sites are gas-fired but I am yet to be made aware of what they are. I estimate, based on consultations with those in the know, that the cost to the State in respect of that provision will be a further €800 million. This would never have been necessary had the 450 MW auctions materialised. That is not to mention the excessive end price faced by the consumer or, as I said earlier, the issue of the reliance on outdated plant and machinery and the maintenance of that and, therefore, its impact on the price as well.

That is just a snapshot of the performance of the Department, EirGrid and the CRU. I know that many look to blame the likes of data centres and that they are a sort of bogeyman when it comes to the reasons our energy security is so strained. If, however, we want to continue to attract high-value corporation tax receipts from high-tech companies, we must have storage capacity. We committed to be in a position to have that capacity many years ago. The Minister will be well aware of that commitment. He made it himself during his previous time in government. Our infrastructure capacity too could have made better progress. The north west, for example, is badly served. Again, that is a combined failing, like it or lump it, on the part of the Department, EirGrid and the CRU.

I have been raising these issues for a number of years with the Minister, the Tánaiste and Ministers of State who took questions and Topical Issue matters about these issues when raised. I have been in touch with the Competition and Consumer Protection Commission for the past two years or so. I will copy this contribution and others made and other information relating to what I am saying to Mr. McCarthy, whose investigation is ongoing, as alluded to by many speakers earlier. What do I hope to expect or what should emanate from that? I hope, first, that our ambition relating to offshore wind is greatly enhanced, as great as it might appear to those in the know, by many multiples of the 7 GW it is thought will be provided by 2030.

The idea that we could have a brand new industry the size of the current Irish economy - over €300 billion in three decades - must be exciting and challenging. However, based on the performance to date by those in the Department, EirGrid and the CRU, I hope there would be a complete overhaul of the processes, procedures, planning and personnel if we have any hope of realising the tremendous opportunity that exists there. I thought the day of passing the buck to regulators was over in the context of the Financial Regulator and the commitments we got from that office back in the mid-2000s but it would appear that it is not with regard to this issue either. During the course of many of the debates to which I have alluded, I was informed that the regulator says everything is in order.

I hope the McCarthy report and the report commissioned by the Attorney General with regard to the Planning and Development Act will allow the Government to make the bold decision of recognising the fact that the processes and procedures cannot accommodate what needs to be done in this country - even with the Maritime Area Regulatory Authority being put in place. A seven-year wait from the time of recognition or inception to delivery should not be allowed to continue so some bold decisions must be made. We know efforts to rectify planning arising out of many failings 40 years ago have resulted in stifling and curtailing residential development in the form of An Bord Pleanála and all that has emanated from it in recent times, let alone the failure to have a statutory time period for it to make a decision.

The issue of judicial review is stifling residential and commercial permissions and permissions in agriculture with regard to Glanbia and the Banagher plant. The judicial review process is getting in the way of development at a time of crisis in residential development and the provision of energy. Major infrastructural benefits that could accrue from the development plan will no doubt be held up by those processes. It is incumbent on Government on receipt of the McCarthy report and the report from the Attorney General to set out to this House how it will amend those processes and procedures within the Planning and Development Act to such an extent that there will even be a sunset period by which the current system must be set aside to allow these developments take place to allow housing to meet the demands of the programme for Government and the demands of those we have the privilege of representing. On foot of the failures associated with our previous commitments regarding the provision of security and the war in Ukraine, and the huge additional pressure that places on price, competition and the provision of energy, it must be addressed by virtue of those two reports, which might be the most important reports this Government might receive in its lifetime. The Minister has huge responsibility to face that head on and make very bold decisions that can realise the ambition of an industry that can give us €300 billion - the size of our economy today - given the potential for offshore energy, particularly on the west coast.

Martin Browne (Tipperary, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

"Fail to prepare, prepare to fail" is an age-old saying but it would be equally appropriate as a slogan for this Government and the previous ones it has led or formed part of over the years. Throughout those years, successive Governments have failed to manage energy supply and demand resulting in where we are today. We are faced with a heightened risk of blackouts this winter. As Mark Foley, CEO of EirGrid, said in recent times, this is another avenue this Government has led us down - another avenue that leads to uncertainty for households and businesses across the country. What we have seen over the years is poor policy that has failed to increase supply in line with the projected increase in demand for energy.

That poor level of foresight led the Government earlier this year to introduce in a rushed manner the EirGrid, Electricity and Turf (Amendment) Act 2022. The purpose of this was to give EirGrid the necessary powers to procure directly 400 MW of power to hold for this coming winter and the two subsequent winters. It will not provide for what we need this winter. The Government would have been better off planning for the future, particularly when initial concerns were raised with it. Instead we are playing catch up and are encountering the obstacles that always arise when implementing something of this nature. The problem is that because of this situation we have been walked into through this lack of preparation, any obstacles will have a profound impact on the immediate response that is needed. We have increased coal and oil use at Moneypoint and Tarbert and we are still short around 280 MW when it comes to meeting demand. The unscheduled obstacles that have presented themselves include legal challenges to EirGrid's effort to directly procure 200 MW in advance of this winter. This is where leaving everything until the last minute leaves us - unable to manage our way through the problems that always arise.

We hear a lot about renewables and our ability to be self-sufficient, yet offshore wind has not been tapped into in any way that is significant while our planning system is beset with problems, the consequences of which we are seeing. We need to see a Government that seizes the opportunities to make us self-sufficient in energy while also providing for a young workforce. If our energy sector was working properly, there would be huge benefits for our young people, who would have the opportunity to take up well-paid jobs in a sector that would protect our planet and protect our energy security. Community energy generation has an important role to play in our energy future and I would advise the Government to plan accordingly and not to wait until the next warning comes because that has already arrived.

Denis Naughten (Roscommon-Galway, Independent)
Link to this: Individually | In context | Oireachtas source

I have one specific question to which I hope the Minister will respond. I want a categorical commitment from the Minister that electricity supply to homes around this country will not be cut if there is a tightening of supply this winter. We have a perverse situation because of the fear that has been instilled in people. Older people are forking out €1,800 to buy back-up diesel generators in case their electricity supply is switched off. The Government and the CRU are causing this panic, particularly among older people and those who are even more vulnerable - people with medical appliances such as those used for dialysis. The reality is that if supplies are cut this winter, it is to secure supplies for high users of electricity. This is immoral and we need a categorical commitment here this evening that this will not happen.

I have made my views known in this House regarding speculative data centres ad nauseumand I will not go into the subject tonight but I will revisit the issue of data centres and the opportunity they can now provide. Let me make it crystal clear. If electricity supply is cut to homes and families around this country this winter, we need to see resignations - resignations at Government level and resignations from the regulator. The reason this would happen is because of the failure to deliver on key initiatives such as this rooftop revolution we have been promised. All of us, including the Minister, know the reason this has not happened is because of the industry bigotry blockage against rooftop solar. As the Minister knows, I went against the departmental and industrial advice to sign Ireland up to a legal obligation to start micro-generation from June 2021. I did that because I knew that it would not happen here unless there was a legal obligation at EU level to make this happen. That was to happen from June 2021. As of last month, just one energy provider in this country is actually paying for rooftop solar micro-generation that is being supplied to the grid. That is sending a message to people that their energy is not wanted. If we want to make that happen and encourage it, yes the bulk of it will happen through self-consumption but people need to be paid for the excess.

This is within the control of the Minister and the regulator. Tomorrow morning, with the stroke of a pen, they could ensure people were paid. This needs to happen. It is the legal obligation. We are going to have a perverse situation where the European Commission will fine Ireland for not implementing a regulation mandating that people who have rooftop solar panels should be paid for excess electricity generation. This is at a time when we have a shortage of electricity.

Speaking of the bigotry blockages that exist, another one concerns the whole area of natural gas. As the Minister is aware, when I was the Minister, I directed that a report be completed on the future of the Kinsale gas field in advance of legislation that would have to be enacted by this Parliament to decommission that gas field. When we got the briefing from the Minister's Department in December 2020, I asked for a copy of this report. I was told it was imminent. The legislation came through this House in the spring of 2021 and we did not have this report. As the Minister is aware, I asked several times for this report. Last spring, a year later, the Minister told me it was imminent. We eventually got the report. It has now gone out for public consultation. Regarding spending on this process, the Department has estimated that it would require major investment. The south-west Kinsale reservoir was operational and storing natural gas until April 2017. We are the only EU member state that has no capacity to store natural gas and we need this type of capacity in the medium term. We must put this required investment into gas storage in the Kinsale gas field off our coast.

Last month, my colleagues and I brought forward a motion on the area of energy security. In that motion, we proposed the drafting and enactment of legislation to address the current supply deficit with an energy emergency measures in the public interest Act, which would have a sunset clause of 36 months. This legislation would do several things. It would ban any threat to turn off the electricity supply to domestic customers and critical social infrastructure, such as hospitals, schools and nursing homes. This must happen. The legislation would also ensure that we would reopen the capacity to generate the 250 MW of electricity available to us in the midlands power plants in Lanesboro and Shannonbridge. These should be used to burn biomass. To facilitate this happening, we need to suspend the licensing regime for the thinning and felling of forestry to facilitate the use of brash to fuel the midland power plants with biomass. This should be done rather than this biomass being exported to fuel power generation in other parts of Europe. We also need to direct that data centres and other high-demand electricity customers use their emergency backup generators when electricity is in short supply. They must all run their generators once every 24 hours. Why not ask them to run them between 5 p.m. and 7 p.m. to take pressure off our electricity grid?

We need to, temporarily at least, repower the Derrybrien wind farm. Any profits from doing that should be ring-fenced for the local community and go towards a local environmental benefit fund. The Government needs to acquire, through Gas Networks Ireland, a floating liquefied natural gas, LNG, terminal to be located either in Cork Harbour or the Shannon Estuary. It would be ensured that the sourcing of fracked gas would be banned for that facility. It should use compressed LNG that can be imported from other parts of the globe where it is in surplus supply. This could be used in the short term as a temporary reservoir to reassure people across this country that the lights will not go off this winter.

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome this debate and the publication of the report. It is an incontrovertible fact that our ambition in respect of climate transformation creates risks that we must plan for. This certainly helps us to do that. It is equally incontrovertible, however, that the more successful our climate strategy is, the less dependent we will become on imported fossil fuels and all the unsavoury sources that some of those fuels must come from.

One of the difficulties in the present debate, fuelled by the failure of the last renewable electricity supply scheme, RESS, auction, is that we have distorted the debate about what is important for Ireland and how we can be successful in this regard. In particular, I deplore the casting of data centres as the villains of the piece. The reality is that data centres have contributed to a 9% increase in demand over five years. This should have been capable of being delivered, but the failure of the RESS auction and to generate energy has distorted this situation. It is commonplace now, though, to hear people in this House pretending that data centres are something to abhor. The reality is they are the backbone of the digital revolution that brings streaming to our mobile phones, makes remote working possible, frees us from unnecessary journeys and makes our systems smart and enhances our capacity to do things in a better way. This digital revolution is also central to Ireland's lead in the digital economy, which we have successfully developed over a significant time. This is not something we should lightly cast aside, nor should we cast aside those at the heart of this as villains in the unfolding challenges we see in the energy market.

Indeed, in the long term, we have a huge capacity for offshore energy generation. We also have a competitive advantage in managing data centres because of our climate. Let us also not forget that data centres are in the electricity trading system under EU rules. They are not part of the carbon dioxide emissions that we need to manage down through direct policies. This aspect is done through the trading system which ensures data centres are located in the places where it is most efficient to do so. To some degree, therefore, we are distorting this debate because we are seeking to forget about this important distinction in EU policy and to pretend that we are ones to make decisions on data centres solely in domestic terms. In reality, under the provisions of our EU carbon dioxide obligations, it is recognised that data centres, like other things, should be located in the most carbon-efficient locations possible. In the long term, ours is just such a country, with our offshore capacity for energy generation. This is not to mention the investment we have made in developing a digital lead.

I find today's report a challenging read. At one level, its message is simple. It states that the mitigation options in an energy security strategy should be such that there is no chance of increasing gas dependence. From that perspective, this rules out any commercial element because of the risk those companies would want to exploit the gas for commercial purposes. The report also rules out all options but storage, renewables and stand-by capacity. It fails, however, to deal with the risks and costs of disruption. It also does not fully delve in how we should rank the various options it gives the green light to. It sells us short in allowing us to make the sort of decisions we need to make. I turn now to those in the House, and this does not include me, who are suspicious of the decision to end gas exploration.

The argument for that in this report is less than convincing. It simply states that further gas exploration could risk more gas dependence. It could at one level but, at the same time, we have to have regard to the risks it might mitigate and to the fact that it does not have to involve a cost to the State. We need a more mature debate on this.

I welcome that a significant concentration on demand flexibility is being built into this measure. Demand flexibility is one of the features of data centres. It should be, as others have said, part of our long-term approach to energy security.

Brian Leddin (Limerick City, Green Party)
Link to this: Individually | In context | Oireachtas source

I would have been happy to give Deputy Bruton more time to expand on that point, if he needed it. I am glad he referred to data centres and the simplistic narratives we hear about them. I heard many of them while following the debate in my office, although they were not made by anybody in the Chamber now.

On the idea that we have failed to develop offshore wind, while I agree we have had a lost decade or 15 years, I wonder what the contributions of some Government and Opposition parties have been on that issue in the past ten or 15 years. I am tempted to look back and I suspect if I did I would not see any of the type of debate we see now that it is increasingly apparent that we can and should develop an offshore wind industry. This should have been talked about for a long time and I suspect it has not been.

Speaking of simplistic narratives, there is a simplistic narrative with respect to the need for liquefied natural gas, LNG, and fossil fuel storage in this country. The energy security review published in September makes clear that it does not support a commercial LNG storage facility and I subscribe to that view. There is an alternative vision, one which was criticised during the week by the Irish Academy of Engineering. As an engineer, I believe the academy's comments do a disservice to the profession. This is the profession that 100 years ago conceived of the idea of the Ardnacrusha power station, which did so much to take this country from a subservient colony to a country that stood on its own two feet and was brave and ambitious. I dare say the Irish Academy of Engineering, had it existed back then, would not have supported the ambition of Ardnacrusha. It stated the energy security review was technically flawed and unrealistic. I wish it had the vision of Thomas McLaughlin more than 100 years ago and the Cumann na nGaedheal Government back then, which had vision and pursued this project vigorously, committing 20% of the State's resources to building it. Ardnacrusha did so much for us.

The vision we have is an alternative to fossil fuels. It is that we electrify as much of our economy as possible through renewable electricity and use hydrogen and derivatives as a means of storing the excess renewable electricity we might generate. We have vast potential off our east, south and west coasts. This is not a technically flawed and unrealistic vision. There is no technical barrier to it. It is a challenge of economics, planning and, most important, vision. The Government is embracing that vision and we can achieve it. It is about using hydrogen for energy generation when renewable power is not being generated. It is about building up battery storage capacity across the system and maximising the potential of demand response. It is about increased interconnection with our neighbours in the UK, France and Belgium. It is also about pumped storage. I was glad to see the Silvermines project listed as vital in the energy security review. This vision is realistic and technically possible. It is not technically flawed. We have to embrace and pursue it. If we do, we will create a better country, economy and planet.

Much has been made of the challenge with solar. We will see a solar revolution in this country, notwithstanding the slow start. Many countries in Europe, in particular the UK, were first off the blocks with solar ten or 12 years ago. We will catch up and we will see a 450% or 500% increase in solar installations in this country. I appeal to the Minister and his colleagues in Cabinet to address the capital acquisitions tax challenge with solar whereby landowners who use more than 50% of their land to develop a solar farm must pay back the 90% relief they received in capital acquisitions tax. This should have been addressed in the recent budget and it should be addressed as soon as possible. I have not heard a rationale for this rule, which does not make sense. For as long as it in place and for as long as there is uncertainty about his, we will see large swathes of land that have potential for solar development locked out and landowners will not get involved.

Carol Nolan (Laois-Offaly, Independent)
Link to this: Individually | In context | Oireachtas source

This debate should be accurately referred to as "Statements on Energy Security". We have a serious crisis, which is concerning to families and businesses throughout the State that are already grappling with the costs of their electricity. Many small businesses have closed their doors. They have given up because they have been unable to meet the costs of electricity and utility bills. Only last week, I heard of one business in Portarlington, County Laois, a fish-and-chip shop that has been operating in the town for many years, which reluctantly closed its doors because of this situation. It is very serious and will have a detrimental effect on the local and national economies. It will destroy businesses and cripple ordinary families throughout the State. Something needs to be done.

Has the Minister intervened with any of the electricity companies and, if so, will he brief us on that? It is my understanding that this is part of his remit. In other countries, ministers have been proactive in intervening directly with electricity companies. It is galling for businesses and families in this State to hear the ESB made profits of €390 million in the first six months of this year, while families grapple to put food on the table and must decide between fuel or food. That is wrong on every level. Action, not fine words, is needed from the Minister. I call on him to do just that.

The situation we face is very concerning. I am one of only a few Deputies in this House who have attempted regularly to bring the Government and the general political conversation on energy back to reality and away from the hyper-utopian vision that has characterised the debate in recent years. What are we to make of all of this talk about how wonderful the budget was because it marginally increased the fuel allowance? That should have been done years ago. I know many people, particularly pensioners, who were struggling and did not meet the threshold. The Government does not deserve a pat on the back for this measure. It should have been done years ago but the Government dragged its heels. Its decision to finally marginally increase the fuel allowance is certainly not something that deserves fanfare or applause.

As the Minister well knows, we are in this situation because the Government has opted to maintain its pursuit of a reckless and nonsensical net zero carbon strategy. This strategy is not only reckless, but obscenely expensive. We can talk now about rising costs as a result of international factors and how this is all the fault of Mr. Putin, which I accept to a certain degree. However, it was not Mr. Putin who closed our power plants.

It was extreme green ideology. Two power plants are closed and I am asking for them to be reopened. One is in Shannonbridge and the other is in Lanesborough. These plants could be fuelled on biomass. Farmers could be incentivised to grow biomass. This would be practical, but I suppose it is too realistic for the Minister. He tends to go with the reckless options all of the time that pose difficulties and challenges for families and businesses throughout the State. They are impeding progress and setting us back instead of moving us forward as a country. The Minister is creating obstacles and setting us back.

Let us be clear. When it comes to comes to costs being imposed on Irish families in the realm of energy and its related carbon reduction policies, nothing can compete with the estimated cost of the low carbon development Bill passed by the majority of the House. I along with only nine other Deputies opposed the Bill. At that time I highlighted that the IMF had estimated the cost of implementing the policies in the legislation to be a staggering €180 billion at a minimum. How does the Minister explain this to the families and businesses that are struggling today? How does he justify it? I would love to know how he justifies the €180 billion cost of his legislation and his crazy ideas. Where were all Deputies who now complain about energy security? When the Bill came before us they were nowhere to be seen. We warned about the dangers of ruling out viable alternatives such as LNG, oil or gas exploration.

The majority of Members of the House have chosen to support and pursue an exclusionary energy policy the has made our fragile energy security even weaker than it already was. There is an urgent need for reality to break through in the debates we are having with pragmatism, common sense and reality. We cannot persist in denying the exploration of indigenous resources. We cannot leave two power plants in Lanesborough and Shannonbridge closed when we face such energy insecurity. Ireland needs to be self-sufficient when it comes to energy. Now more than ever the Minister needs to take this on board.

It is absolutely ironic that while we have little or no storage capacity in the State, we have endless stores of detached and deluded political rhetoric. This is one thing there seems to be no shortage of. We need to change course immediately. We need energy security. We need to make sure that Ireland is energy sufficient when it comes to this issue and that we are not left in a state of crisis because we are already entering such a state.

Carol Nolan (Laois-Offaly, Independent)
Link to this: Individually | In context | Oireachtas source

We do not need extreme policies to take action. We could all take action.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Only one voice.

Carol Nolan (Laois-Offaly, Independent)
Link to this: Individually | In context | Oireachtas source

He is taking what I said out of context.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We can only have one voice.

Carol Nolan (Laois-Offaly, Independent)
Link to this: Individually | In context | Oireachtas source

He is taking what I said-----

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am sorry. The rules state-----

Carol Nolan (Laois-Offaly, Independent)
Link to this: Individually | In context | Oireachtas source

This is the hysteria that his party whips up all the time.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Look.

Carol Nolan (Laois-Offaly, Independent)
Link to this: Individually | In context | Oireachtas source

It is nonsense.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

No, the Minister to reply uninterrupted.