Dáil Éireann debate -
Thursday, 27 Jun 2024

It is the first time since the Minister, Deputy Ryan, announced that he will be stepping down as leader of the Green Party and will not be contesting the next general election that I have had an opportunity in the Chamber to wish him well. We have had lots of engagement both here and in the committee and it has always been constructive and policy-focused. I thank him for that and wish him well.

My first question relates to the energy poverty steering group. How many times has it met? What actions have stemmed from these engagements? I ask the Minister to make a statement on the matter.

First, I thank Deputy O'Rourke, in turn. It has always been a pleasure to work with him in various committees and in the Chamber here. I can respond similarly to the Deputy about the constructive approach he takes. As we still have some months to go in this Government, he and I will probably disagree on various issues, but the engagement with the Deputy has always been very civil and I very much appreciate that.

In response to the question, the energy poverty steering group was established in August 2022 and has met eight times. The steering group has overseen implementation of the energy poverty action plan. An annual report outlining progress under the various actions in the energy poverty action plan was published in May this year and is available on gov.ie.

Headline achievements since December 2022 have included the implementation of the electricity costs emergency benefit schemes II and III, through which some 2.2 million households received €1,050 between November 2022 and April 2024 at an approximate total cost of €2 billion; the completion of 2,445 retrofits through the local authority retrofit programme; and the delivery of approximately 5,900 free upgrades for energy poor homes under the better energy warmer homes scheme, with final expenditure in 2023 amounting to €158 million.

As part of the work of the steering group, the inaugural energy poverty stakeholder forum was held on 7 July 2023. The steering group launched a consultation to inform the development of a revised energy poverty action plan in March 2024. The second energy poverty forum was held this week, on Monday, 24 June, and provided another opportunity for stakeholders to discuss proposed actions for inclusion in the revised plan, which is due for publication in the coming months.

These measures, along with others in the plan, have helped to ensure that despite the unprecedented rise in energy costs experienced arising from Russia's invasion of Ukraine, households in Ireland have been supported by this Government to meet their energy costs, and homes have been warmer and more comfortable as a result.

One of the issues of contention for some time in this area is definitions. A clear definition gives us the opportunity to measure. There are different definitions. Does the Minister have an update on the work towards agreeing a definition on energy poverty? Will the Government adopt the EU definition, for example, or is the Minister considering a focus on outcome and experience of going without sufficient energy, as recommended by a number of stakeholders, including the Society of St. Vincent de Paul?

We are looking at definitions. The ESRI has been commissioned and will complete a body of research, although it will be some time before that is completed. An evidence-based approach will be key to its analysis and coming up with a definition.

For the State, the most effective measure in terms of definitions or impacts has been on the awarding of fuel allowances for some 400,000 homes. As I said, that is designed to try to capture a variety of different circumstances. There are always going to be people on the margin. There will be some people who are ineligible for that, who are in effective fuel poverty. It obviously depends on the nature of the building they are in, as well as their income and various other factors. The allowances and the definition for those who may apply for the warmer homes scheme are examples of how we are applying the definitions at present. There is an issue and it is important that in any interventions we target those most at risk. That relates to the building fabric in particular. We will await the research conclusions from the ESRI to further decide on the definition issue.

One of the things we need to do, which would be enabled by clarity on definitions, is better mapping and managing of data, for example, on income, CSO data, population data and also BER data from the SEAI. That would allow us to have clear targets for energy poverty reduction built into our national retrofitting plan. I have raised this issue with the Minister before and he pointed towards what is almost an overlap with the warmer homes scheme. As a result of the eligibility criteria, there is a significant overlap there, but we need a greater strategic focus in that regard. I would welcome the Minister's thoughts on that.

In the meantime, there is a need for wraparound services, for example, energy advisers, in the intervening period, as has been recommended by a number of stakeholders. They could, for example, help people switch providers and be more energy efficient in their existing, often challenging, domestic circumstances.

First, our retrofit schemes are the most effective mechanism. We have immediate measures such as the fuel allowance, but the best way of tackling fuel poverty is to deal with the problem at source and to improve the building fabric so that people do not have to spend money, especially on wasteful or inefficient fossil fuel heating systems. Our strategy in that regard is very clearly towards a socially progressive approach. The largest share of the funding we get from carbon tax goes to the warmer homes scheme, which is explicitly targeted. It is not just that, there are also the social housing inventions made by the Department of Housing, Local Government and Heritage. The relentless year-on-year targeting of those at risk in that way is the best way of addressing the problem. The fact that each year we know we have an additional €89 million coming, which is outside the budgetary system, has allowed us to give clear signals to the industry that this is going to continue to scale up.

It is working. We have a really successful approach.

On the Deputy's second point on advisers, I agree that is an important element. Through the difficult period of the past two to three years, we have seen the systems in place are working effectively. The companies working with MABS, the likes of the Society of St. Vincent de Paul and our internal debt management teams have helped us through this process. They all have backup resources to help the most acutely affected. There are still many households in difficulty. We are not out of the woods yet. A particularly significant number of households are still in debt arrears on gas bills. We have direct customer support systems and they have helped people through this difficult period.

Over a relatively short period of time, this Government has completely reimagined and implemented a new policy, legislative and regulatory system to deliver on our commitment to offshore renewable energy. Our plan-led approach to delivering our offshore wind targets includes a number of overlapping phases. Over 3 GW of capacity has been procured in our first offshore wind auction from phase 1 offshore wind projects, which will deliver over 12 TWh of renewable electricity per year. Three of the phase 1 projects have submitted planning applications in recent weeks with the other three expected to submit their formal planning applications shortly. The terms and conditions for our second offshore wind.auction are being finalised and the auction process is expected to begin before the end of this year.

Last month as part of phase 2, my Department launched the State’s first draft spatial plan for renewable energy generation, knows as the draft south coast designated maritime area plan, DMAP. The development of further DMAPs in other parts of Ireland's extensive maritime area will follow as part of the Government’s plan-led approach to offshore wind development.

Development of the offshore wind marine planning guidelines is being co-ordinated through a cross-disciplinary working group. The guidelines are being worked on as a matter of urgency and are expected to be finalised by quarter 4 of 2024. In May, my Department published the future framework for offshore renewable energy, setting out the key actions necessary for Ireland to deliver a potential 20 GW of offshore wind by 2040 and 37 GW by 2050.

What is the timeline for the south coast DMAP to be approved? I hope it is imminent. There is a concern we are not moving quickly enough. I acknowledge it is a considerable body of work to prepare DMAPs and that the south coast one is the first one. However, there is a concern we are not moving quickly enough on the west coast and elsewhere. Is consideration being given to that? Is the Minister aware of that concern? Much of it relates to Ireland's role in sending a signal to the world that we are serious about offshore wind and want to be a leading player in it. That relates also to floating offshore wind. It is about the signals to those who operate in that space.

I have been at a series of international meetings recently on the issue: in Bilbao, the European offshore wind energy conference; in Bruges, where we had a meeting of the north-west energy ministers on the subject; and in Dublin last week with our Scottish colleagues. In all three locations, I sensed broad consensus from industry, regulators and international experts that Ireland is now well placed. Our phase 1 projects have gone through the auction system and two other projects are progressing which were not successful in the auction system. They are in a very good place and are already gone into planning. All six will be in planning this summer. Subject to that coming through, they will be able to be built. We are on track.

On the south coast, the DMAP process took time but has been hugely beneficial. We had some 70 public meetings. About 25 staff in the Department engaged in the past year and a half or so on getting that right and I think it is right. The auction will start this year and I am confident in that phased approach.

We will go into western waters. One of the first projects is Sceirde Rocks in the west. We will do further DMAPs to set us up for the development of floating offshore wind. We will do that in the way that works most effectively for the Irish public as well as the industry. It will be on an experimental basis which allows us to test and develop the technology. In all strands and each of the waters - east, south and west - we are well placed and I am confident we will deliver.

An issue that comes up consistently is ports infrastructure. Deputy Kenny and others have raised this consistently. It is almost a matter of chicken and egg. The ports need a commitment from developers before they can secure funding; the developers cannot commit when they do not know the infrastructure will be in place. The clock is ticking on these projects, particularly the phase 1 projects and it is phase 1 developers I am talking about. There is an indication ports are in for European funding but they have been unsuccessful in securing such funding in the past. Can the Minister give any assurance they will be successful? Does he have any sense one way or another? If they are not successful, is there a contingency plan? Will the State intervene, as has been the case in other jurisdictions?

We will. We want to see our ports developing as one of the benefits from offshore wind. I expect the likes of Shannon Foynes Port to be centrally involved in the development of that first project on the west coast.

I expect the Port of Cork to develop and deliver the project it has planning permission for, which is the development of a 200 m berth of 11 m or so depth, an extension of the port in Ringaskiddy to be used as a deployment port for renewables and as a future expansion of the port as we move out from city centre port facilities in Cork. It was with regret the Doyle shipping yard on the other side of Cork Harbour has not decided to proceed. That was a commercial decision. It is a private port and company but I hope they can come back in at a future date because we will see significant development opportunities in our ports area.

Rosslare port is a key next port and Irish Rail is advancing a business case for that. It has been delayed somewhat by the designation of some of the port area within a special protection area by the National Parks and Wildlife Service but we will manage that. We see that as an important port development.

There are other port locations of relevance. Yesterday in one of the committees, Bremore Ireland Port was referred to. Belfast Harbour will be a critical port for us. We need to take an all-Ireland approach on this because Belfast Harbour is already seen as a successful port. Between those four or five port opportunities, I am confident we will have the port capability to deploy the resources we need.

The Environmental Protection Agency, EPA, has analysed the Government's climate action plan and found that if every measure were fully implemented, we would only reduce our emissions by 29%, rather than our legally binding target of 51%. This is the second year in a row the EPA has come to this conclusion, so nothing the Government has announced in the past 12 months has led to a verifiable increase in emissions reductions. How does the Minister plan to change this record in his last few months in office?

The roadmap for achieving a 51% reduction in greenhouse gas emissions by 2030 is outlined and developed in successive annual climate action plans which set out detailed strategies for delivery across multiple sectors. Our ambitious 2030 target is underpinned by legally binding carbon budgets and sectoral emissions ceilings established under the Climate Action and Low Carbon Development (Amendment) Act 2021.

The Climate Action Plan 2024 outlines a range of measures across key sectors to drive emissions reductions. In the electricity sector, we aim to increase renewable energy generation to 80% of electricity demand by 2030, including targeting 9 GW of onshore wind, at least 5 GW of offshore wind and 8 GW of solar capacity. In the transport sector, we are aiming for a 20% reduction in total vehicle kilometres travelled and for 845,000 electric vehicles to be on the road by 2030. In agriculture, key measures include reducing chemical nitrogen use, improving animal breeding for lower methane emissions and diversifying land use.

However, current projections indicate a significant challenge requiring an acceleration in implementation. The Environmental Protection Agency's with existing measures, WEM, scenario projects that 2030 emissions will only be 11% lower than 2018 levels. Under the with additional measures, WAM, scenario, which incorporates most policies and measures in the Climate Action Plan 2023, emissions are projected to be, as the Deputy said, 29% lower in 2030 than in 2018. The EPA’s projection also indicates that if all the unmodelled policies and measures in the climate action plan and yet unallocated emissions savings were accounted for, the projected emissions reduction in 2030 would be 42%. To accelerate progress to our target, the climate action plan 2024 sets out a range of important actions, including the acceleration of the deployment of renewable energy, enhancing agricultural measures based on the latest Teagasc marginal abatement cost curve, and implementing more aggressive transport modal shift strategies. The plan also introduces a strengthened governance framework including improved monitoring and reporting systems to track progress more effectively and enable timely interventions where needed.

Additional information not given on the floor of the House

A key component of the strategy to meet the 2030 target is addressing the 26 MtCO2eq of unallocated emissions savings in the second carbon budget period from 2026 to 2030. The Climate Action Plan 2024 outlines an approach to allocate these savings, focusing on five key pathways: economy-wide energy efficiency and demand management; accelerating the future energy system; implementing sustainable food and agriculture practices; deploying carbon capture and storage technologies; and supporting carbon removals.

The land use, land use change and forestry, LULUCF, sector plays a crucial role in Ireland's climate strategy, but it presents unique challenges. Due to significant fluctuations in the baseline emissions and ongoing inventory refinements, the Climate Action Plan 2024 proposes a new approach for this sector. This includes setting ambitious activity targets, such as increasing afforestation rates to 8,000 ha per year by 2030 and aligning with EU LULUCF regulations. This approach aims to provide a more stable framework for emissions reduction in this complex sector.

To bridge the remaining gap to the 51% target, the climate action plan seeks to harness the potential of innovation and emerging technologies. This includes exploring green hydrogen, advancing bioenergy solutions and investigating carbon removal technologies. The plan also stresses the importance of behavioural change and public engagement, recognising that achieving the target will require efforts from all sectors of society.

The Climate Action Plan 2024 acknowledges that meeting the 51% reduction target by 2030 is a significant challenge which will require unprecedented levels of action and investment. It calls for a whole- of-government approach, enhanced co-ordination between national, regional, and local levels and increased public private partnerships. The plan recognises the need for flexibility and adaptability, recognising that strategies may need to be adjusted as new technologies emerge and as the impacts of current measures become clearer.

We do not want to politicise this issue. Climate is too important for that. It is the Environmental Protection Agency and its analysis which has shown us we are missing the targets. I presume none of us take issue with its figures. As much as we talk a good game about the need for climate action and the importance of reducing emissions, with which we in the Social Democrats are, of course, in full agreement, rhetoric alone will not reduce our emissions. We need detailed plans across a variety of sectors and laser-focused implementation. We also need to ensure impacted industries like agriculture are fully supported as they make the necessary transitions. With all due respect, the Minister's will to reduce emissions will not achieve it alone. We need plans, resources and implementations. The Government has mere months left in office; of that there is no question. The question is what detailed plans are going to be implemented in that time to bridge the huge gap which exists in its climate action plan.

The heavy lifting has to be done in the renewable sector. I refer to the debate I had earlier with Deputy O'Rourke regarding the delivery of the likes of offshore wind and the solar revolution that is taking place. If we can meet our targets in this area, with some 22 GW of power from renewables by the end of this decade, that would bridge half of the gap. That is the most significant first fundamental measure. The delivery of those offshore renewable projects in particular will give us a scale of power that will allow us to switch off the gas generation and meet our targets.

Transport and agriculture are two of the areas in which we face the greatest challenges. Demand management measures, which we are starting to see being introduced across the country, will be one of the significant developments. The Deputy will be aware that, this summer, through traffic is being taken out of Dublin city centre. We need to replicate that in other locations, particularly in those areas where we are really enhancing the public transport offering with bus services and so on. Accelerating delivery of demand management measures that can improve public transport is the second area in which there is the greatest potential. Agriculture will also have to go further and do more. I believe it can. People have been surprised by some of the speed at which agriculture is starting to reduce emissions, with a drop of some 30% in fertiliser use over the past two years. That was never modelled or expected by the EPA but it has actually happened. We need to go further than that.

In the industrial area, one of the areas in which big reductions can be achieved is through the likes of carbon capture and storage. For incinerators, cement plans and other large industrial users, it will not be an easy thing to do but it is absolutely achievable by the end of this decade. Some of these additional measures are the way we can close the gap.

While I do not doubt for a second the Minister's vigour and belief in how we close the gaps, we are specifically looking for the kind of plans contained within this Government which are in keeping with the figures projected by the EPA. The reality is the climate action plan has a big hole. By the sounds of it, there are no concrete plans - none the EPA can measure - to address it. The experts are in the EPA. We talk often about the need to listen to the experts. The cavalier attitude the Government has adopted to our emissions targets is regrettable. We talk about the change in the traffic transport plan in Dublin. There are questions about that but I am supportive. I do not see the necessary increase in bus routes to match the ambition in this regard.

Anyone listening to the glass-half-full assessment this morning would think we are on course to exceed our climate targets. The truth is we are on course to massively miss them. It is a failure of Government. Not only that but it also sets the next Government up for almost certain failure because the targets, which will have to be met in just five years, will be far too large and therefore unachievable. I thank the Minister for his contribution.

The EPA is in a difficult position. For some of the policy measures we are planning, as I said, it needed to see back-up, financial commitment or other Government measures so that they would be seen as deliverable. Anaerobic digestion is one example of an area that was not easy to model or expect to deliver, but we will deliver it. It is one of the ways people can actually diversify incomes in agriculture. The amount of imported fossil fuel gas and emissions that come from it can be reduced. While we are in a very tight timeframe there, I had a meeting last week with the sector people who are interested in investing in this. Previously, the EPA could not model or project what we could deliver in bio-methane because we did not have the strategy out. We now have that strategy. I am very confident a scale of investment will be seen in this area. This is one example of a project which previously was not easy to model or estimate. We can now show real progress because we have a strategy and there will be funding arrangements from the climate, nature and infrastructure fund, which gives funding certainty for the next five years. That is what is needed. It is being delivered as one example of a project that was not previously modelled but can be delivered on.

While there is some confusion on the terminology here, the Minister will understand the question. I am asking the Minister to provide an update on the community-led projects that were successful in auction 1 and auction 2; the number of these projects that remain in the process; if he is aware of concerns that considerable barriers remain for community groups in the recently launched phase 2; and if he will make a statement on the matter. I know there is a new SRESS process as well.

A thriving community renewable energy sector is a key pillar of the Government's climate action and renewable energy strategy. The first two RESS auctions provided pathways and supports for communities to participate in renewable energy projects. Seven community projects were successful in the RESS 1 auction, of which three are now energised. These community projects have been enabled by the RESS scheme and have now entered into private arrangements for selling their renewable energy. Ten community projects were successful in the RESS 2 auction, of which eight signed implementation agreements to deliver under the RESS 2 terms and conditions.

While the RESS enabled these community projects, there is evidence of significant challenges community projects face with the auction-based nature of RESS, along with other barriers to project delivery. To alleviate these issues, I announced last month a set of tariffs for the new small-scale renewable electricity support scheme, SRESS, and have provided for support for future community projects to now be through the non-competitive SRESS process. Community projects that are 100% community-owned will be permitted to apply to SRESS, including projects that were in previous RESS auctions and that have not energised. SRESS terms and conditions are currently being developed by my officials. The scheme will open for applications this year.

In addition, a suite of measures is being developed to overcome other barriers to renewable energy projects, including new and innovative approaches to grid connections being considered by the CRU and ESB Networks.

How many megawatts of community-owned renewable energy are currently energised and how many more megawatts will be needed in order meet the 2030 target? It seems clear that there is development in this space from a policy perspective, moving from the RESS and recognising some of the barriers. It remains to be seen whether the new SRESS process will address that. From a community perspective, when we look at the number of sustainable energy communities we have, it is clear that in most other European countries, the focus of sustainable energy communities is not on fabric-first retrofits; it is on generating renewable energy. It seems we are out of line with our European counterparts in that regard and that there are significant potential opportunities available.

It should always be efficiency first. That is the first fuel, first saving, first and most important priority. I agree with the Deputy's basic point. We have not delivered at the scale and speed that I would like in the context of community-owned generation of renewable power. One of the advantages of renewable power is that it should allow for a more distributed, broadly owned energy sector. I do not have the exact figures for the projects that have been energised but I will get them and share them with the Deputy. I am sure that we share the common target of 500 MW of community-owned renewable power by the end of the decade.

I had a very good meeting with a variety of community-energy operators to try to get to the bottom of why we have had such difficulty. There are a number of reasons. One of the main ones is regarding the grid and the ability for community projects to sometimes get the financing and to get the grid connections funded and supported. This has been a particular difficulty. I believe the new SRESS scheme will be successful. There has been a great deal of very positive reaction to it. The scheme really does prioritise and benefit, to the best of our ability, community ownership. Grid access is the key. This summer, the CRU and the ESB will, I hope, be introducing new mechanisms by which we can prioritise community projects and make sure they get access to grid connections. Along with the SRESS, this should unlock the ability of community groups to scale up generation and efficiency.

I encourage the Minister to look at some innovative models across Europe that have sought to take a different approach to the delivery of the same outcome. The outcome should be the literal ownership and a sense of ownership of the energy transition in order to allow people to share in the opportunity and the benefits offered by the transition to renewable energy. There are so many positives associated with that, not least that it empowers communities. For example, Ripple Energy in Britain takes ownership of a percentage of renewable energy projects, gives local communities the first opportunity to invest and then puts it out to a wider audience. It is a tried-and-tested model. Similarly, in Denmark there are higher commitments in terms of community ownership. It is up at 20% through the Danish renewable energy legislation. Legislative, regulatory and practical measures are needed. I know that public and private developers are open to this. We need to look at innovative mechanisms. I encourage the Minister to look at Ripple Energy as a mechanism to let people play their part. We met with representatives from that company recently.

I agree with the Deputy. I will look at the model. I am very open to looking at different models. We should continue to evolve this because there is real benefit in terms of wider community ownership and engagement. The International Energy Agency, IEA, country review, which was noted by the Government this week, recognised that there are a many community benefits and gain from our existing offshore and onshore schemes. It is not as if we do not have community gain. There is a revolution taking place at the household level. We are seeing 100 houses per day being fitted with solar panels. This has taken off unbelievably successfully in the last year. That is a wider distributed ownership. I agree with the Deputy, let us see how the SRESS and the new grid arrangements we are going to try to promote work. However, I do not think we should be restricted. One example presented at the European Energy Council recently was Ecopower, a Belgian company. The really attractive thing about this company is that it acts as a supply company as well as a generator. It is also involved in efficiency. This integrated approach of energy supplies, generation and innovation is a good model. There are good models on the continent and in the UK and we should continue to look at them as we expand community energy ownership.