Ms Kadri Simson:

I truly appreciate that I have received this invitation to speak to the committee today because in my previous life, before I was nominated as EU Commissioner for Energy, I was in national politics and for almost a decade a national parliamentarian. I understand the need to give the committee first-hand information on what we are doing at Brussels level. As every member state is unique and the energy mix in each and every member state is different, this is also necessary for me and my colleagues to hear from the committee members what are their national challenges and expectations. I will make some introductory remarks and I hope the committee members will have comments and questions.

When I think of Irish energy pioneers, John Tyndall comes to mind. He was the first scientist said to have discovered the greenhouse effect, and one of the most important factors driving our energy policy action in the EU today is greenhouse gas emissions. He was one but, of course, not the only one. I want to talk about this matter among others today.

Right now, there is a dilemma at the heart of EU energy policy. First, there is a changing climate. They say that last year might have been one of the hottest on record but, instead, one should consider that it might be also one of the coolest for the next 100 years. Second, there are changes in wholesale energy prices. The committee members are well aware of this because Ireland's electricity prices are higher than the EU average. Third, there is the war in Ukraine. This is a reality that is causing us to reconsider Europe's energy security.

Let me focus on this last issue for a moment. The war in Ukraine has changed things when it comes to energy. We are focused to confront the fact that we are too dependent on imports from Russia. Energy is being used as a tool for blackmail and this is something that we cannot tolerate. The committee will be aware that so far, since the war broke out, we have proposed already six sets of sanctions against Russia. The first set of sanctions targeted technology that they need for their refineries and drilling. The fifth set of sanctions covered coal imports and the last one is about oil.

We have to also think in the longer term about our relationship. We cannot justify our dependence on Russian fossil fuels. We have agreed to remove all of them from our system as soon as possible. We were prepared for that because we are on the road to a climate-neutral Europe with the European Green Deal. Last year, we proposed our Fit for 55 package. A year later, the reality has changed and we need to go one step further and faster. This is why we brought forward the REPowerEU package last month. This is our plan to get rid of Russian fossil fuels as soon as possible. That means we will move further and faster in every aspect of the Fit for 55 package, we will diversify our gas supplies, we will ramp up renewables and we are going even further with energy savings. Without the latter, it is impossible to get rid of Russian imports in the short term.

All this will not be easy because doubling down even further will take a commitment and effort across society, including addressing the main obstacles holding us back.

The details have to be in place. The first thing proposed is that we have to increase the renewable share in our energy mix. By 2030, it has to reach 45%. It is difficult because there are challenges in building new renewable parks. The biggest bottleneck is permitting so we have to shorten this. Right now, we are looking at timeline of up to a decade for offshore projects. It is time we do not have now. We are also proposing a massive solar PV deployment via the European solar rooftop initiative. To underpin this, we wish to amend the energy performance of buildings directive to make solar panels on the rooftops for newly built buildings mandatory. We have to, of course, ensure there is a skilled workforce available and also manufacturing here in Europe. We plan to set up an EU large-scale skills partnership as well as a European PV solar industry alliance, so that we do not create new dependence on imported solar panels from China.

We cannot replace Russian imports with our own alternatives supplies. We have to replace Russian imports with renewables and savings. We also need to diversify our supply routes and that means securing around 50 billion cubic metres of liquefied natural gas, LNG, and an additional 10 billion cubic metres of pipeline gas from non-Russian sources. This is ongoing work. We have been contacting all the major reliable partners across the globe but mainly in our closest neighbourhood. We are planning to aggregate EU demand so that we can negotiate the price with these suppliers. The next step will be a joint purchasing mechanism that member states can participate in. They will then receive cheaper shipments if we are successful. We are planning to build long-term partnerships at first for LNG, but in the long run for renewable hydrogen.

We are also making suggestions to member states as to what they can do before this winter approaches. Members have probably seen our toolbox. This also includes short-term measures from taxing windfall profits to using regulated prices for most vulnerable consumers. These are the main points in this package.

I would like to add that the strength Ireland has is that it has huge opportunity to offer on renewables. The national energy climate plan is ambitious if we compare it with other member states. The proposal set out in Ireland's climate action plan shows confidence in the potential on this island. I am going to visit the green energy projects in the midlands tomorrow. There are few places in the world that are better suited to offshore renewables than Ireland. Sitting on the edge of the windy Atlantic gives Ireland great potential to produce more renewable electricity. From our side, I believe our guidance on permitting gives Ireland an opportunity to boost the domestic industry massively. This has potential for job creation in communities all along the Wild Atlantic Way as well as around the country.

I also want to mention retrofitting because there are some sectors where savings are relatively easy to achieve. Energy efficiency is one of those and retrofitting Ireland's building stock will immediately cut its omissions and ease the pressure on the environment and reduce the need for energy. It also makes a just transition possible as increasing our efficiency allows us to offer the final consumers more affordable energy bills. It helps us to tackle energy poverty at its cause. Again, ambitions are high here. The plan aims to retrofit more than 1 million homes by the end of the decade and to install more than half a million heat pumps. We will help from our side with legislative proposals. I think that European energy performance of building directive is most useful here.

The three main issues that dominate our landscape right now are sustainability, affordability and security. Ireland is among the ambitious member states. There are very difficult negotiations ahead at Council level because, as I mentioned, we are proposing that member states agree to cover 45% of our energy consumption with renewables by 2030. If we keep in mind that the existing target is only 32%, then this is a major achievement that will not be achieved without member states agreeing on it.

From our side, there are some additional new funds that Ireland can use. Private investors are willing to invest. Consumers see that when they have a chance to use renewables in these regions, prices are more affordable. The biggest bottleneck is permitting and we do not have a decade to waste.