Mr. Kevin Brady:

I will address the heat study first. It is true that Ireland has a low level of renewable heat. We are at about the European average for renewable electricity and for renewable energy in transport. We are at about one third of the European average for renewable heat. The European percentage is in the high teens and we are at 6% or 7%. The main purpose of the heat study was to look at how we get out of this. It does not just look at 2030 but also at 2050. It looks at how Ireland's heat sector should be to have net-zero emissions by 2050. 2030 is a milestone but the question is about how we get to net zero. It was only published today, so I accept the Senator will not have the details. There are a few key answers. Mr. Regan mentioned them earlier. Electrification of heat, both direct electrification and via heat pumps, is a substantial factor in heat in buildings. Another matter is district heating in denser areas. The report highlights the need to address higher temperature heat and for another zero-carbon energy carrier besides electricity, which is where green hydrogen comes in, particularly in higher-temperature industries. That ties back into the package that we are talking about.

The heat study adds to Ireland's journey or pathway. It shows that we have a specific issue and what different things we need to do. The study fits neatly into recent Government policies, such as the retrofit scheme, with the idea of electrifying the heat in our residential building stock. It identifies gaps, such as the heat in our commercial building stock, and how we use higher temperature heat for industry. Mr. Regan mentioned the idea of a renewable heat obligation. One can look at how we are doing so well compared with the European average for electricity or renewable energy for transport. Schemes in both of those sectors socialise the cost across all consumers. The public service obligation, PSO, in our electricity bills pays for wind energy and will soon also cover solar energy. The biofuels obligation scheme in the transport sector requires a certain proportion of the energy used in the transport sector to be renewable. Fuel pump handles are marked with either B7 or E5, which means up to 5% of petrol or 7% of diesel is renewable. The Minister for Transport has published a policy statement and increased the biofuels obligation rate for this year again. That is increasing, but the cost is socialised.

There was a consultation before Christmas on a renewable heat obligation. It is a similar scheme to the biofuels obligation. That consultation was extended, because there were concerns about the cost, which we would share. When we talk about socialising costs, that means that energy prices might increase for consumers. We are acutely aware of that when examining how we decarbonise heat and pay for it. That is a challenge we are looking at. The Senator made a point on the heat study. We view the study as a blueprint of what 2050 should look like. The policies and measures that we put in place now should be in keeping with that.