Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

The focus of programme C is on energy and the delivery of the key elements of the Government's energy policy to ensure a security of supply, competitive energy supply and environmental sustainability.

The programme provides €7.3 million to cover the operational costs of the Sustainable Energy Authority of Ireland, SEAI, and more than €61 million for the better energy grant programmes. The better energy grant programmes operated by the SEAI include the better energy homes scheme to provide grants towards a range of energy efficiency measures to home owners, the better energy warmer homes scheme to deliver a range of energy efficiency measures free of charge to low income households and the better energy community programme to encourage community-based partnerships to improve the thermal and electrical efficiency of the building stock and energy-poor homes.

The three schemes are anticipated to deliver energy savings of 173 GWh in 2016 and provide approximately 9,000 low-income homes with energy efficiency measures - that is 36 homes per day - while continuing to stimulate activity in the retrofit industry, supporting approximately 2,300 jobs. The energy programme provides for expenditure to fund applied energy research along with demonstration programmes and projects. When the committee gets up and running, its members might get the opportunity, no more than myself, to travel around the country. I am hoping to visit the research facilities in Galway and Cork. It might be useful if the committee were to have a public outreach hearing in both of those venues to see what is going on there.

On Brexit, the critical issue for my Department is in the area of energy. We have an all-island electricity market - the single electricity market - in partnership with Northern Ireland. The agreement between the two Governments - the Irish Government and the UK Government - is working and our intention is to continue to progress it. We have a single regulatory system and a single owner, Eirgrid, across the island. It is our intention to work closely with our colleagues in Northern Ireland. This is why the Energy Bill 2016 is of such critical importance. It is to ensure that we have the most flexible single electricity market on the island of Ireland as is possible.

There are also issues relating to gas supplies. The committee is aware that a substantial amount of our gas comes through the UK. There are emergency provisions within the EU regulations regarding gas supplies and share rationing, which, naturally enough, involve the UK at the moment. These will remain in place unless specifically replaced. We will have to see how it works out over the next two to two and a half years in the negotiations.

The other side of this is the fact that we have a strategic oil reserve. Under the International Energy Agency rules, member countries, including Ireland, are required to have 90 days of oil in storage. The EU also mandates that these stocks are held in the European Union. Approximately 20% of our stocks are in the UK and we will have to reach a satisfactory arrangement in that regard but it is not an issue in the short term. It is important to remember that this is a condition laid down by the International Energy Agency. The UK is also a member of the agency and that will not change on foot of the referendum vote.

While there are energy issues that need to be addressed, from a European point of view it is important to remember that our connectivity to the European gas and electricity grids is through the UK. The latter is a major supplier of energy not just to Ireland but to continental Europe. It is in everyone's interests that the energy union being progressed at present include the UK, not just to benefit all member states, particularly Ireland, but also to meet the need for energy security across the European Union so that it will not be dependent on less stable countries - usually those located to the east of the Union.