Dr. Paul Deane:

I thank the committee. I am speaking from a very wet, windy and blustery County Cork. I will give a short summary of my opening statement. Ireland is one of the most fossil fuel-reliant countries in Europe with fossil fuels meeting just over 86% of our energy supply in 2021, 77% of which was imported. We are currently spending over €1 million every hour on importing fossil fuels like oil and gas into the State. The cost of this massive reliance on imported fossil fuels is now reflected in the prices we pay to heat our homes, fuel our cars and power our appliances. While Ireland’s energy and climate policy is strongly influenced by that of Europe, our delivery of fuels like oil and gas is also impacted very much by what happens in the UK. Ireland’s geographical position on the periphery of Europe with no direct physical infrastructure connecting to other EU member states means that while we look to the EU for policy, we must also look to the UK for partnership in energy-related matters, especially in relation to natural gas.

Natural gas is an important fuel in Ireland. It heats over 700,000 homes and businesses and generates over half of our electricity. Over the next decade, the implementation of the Government’s climate action plan to reduce the pollution from greenhouse gases means we will use less gas on aggregate - about 40% less - in 2030, but there will be individual days when we will use more, especially when heating and power demand are high and generation from renewables like wind and solar is low. To understand gas security, it is important to distinguish between a physical interruption, where an importing pipeline is cut off, and a price risk, where gas is available but becomes expensive. Given our reliance on gas for energy, a physical disruption in supply from the UK into Ireland for any long period of time would be catastrophic, whereas a price disruption, which we are experiencing right now, results in extremely high prices of gas, rather than a physical interruption. While Ireland is not physically connected via pipelines to Russia, we are connected via prices and we see the consequences of Russian actions in our heating and electricity bills, which are passed through on European and global markets. The challenge of building gas infrastructure with the objective of enhancing energy security while at the same time reducing gas consumption with the objective of meeting climate targets is a new paradigm for policymakers in Ireland and across other EU member states.

Our analysis in University College Cork undertaken on behalf of the Electricity Association of Ireland shows that renewables such as wind and solar are by far the best way for Ireland to reduce its emissions and reliance on fossil fuels. They do this because they reduce the use of fossil fuels in power stations, but importantly, they do not replace the need for conventional power stations, which will remain for the next ten to 15 years especially during times of calm weather over north-west Europe. Decisions on building infrastructure to increase national energy security are complex because they involve value judgments of an uncertain future where large investment decisions must be made with imperfect information. What is clear is that all options to increase energy security in Ireland must be considered and evaluated, but it is not clear which are most appropriate and which options can be future-proofed to align with decarbonisation goals. All options for gas diversification and storage take time to deliver - two to three years at least. In the short term energy conservation in Ireland and across Europe is key to enhancing energy security in Ireland. A 10% reduction in national energy consumption delivers the same supply benefit as building 4,500 MW of wind, which would be like doubling today's wind capacity in the Republic of Ireland. While there are certainly external dimensions and risks to energy security such as the war in Ukraine, there are also internal challenges that must be acknowledged, chiefly the lack of agility in planning, permitting, and delivery of energy projects in Ireland.

While Ireland is not physically connected via pipelines to Russia, we are connected via prices and we see the consequences of Russian actions in our heating and electricity bills which are passed through on European and global markets. The challenge of building gas infrastructurewith the objective of ing to enhance energy security while at the same time reducing gas consumption with the objective of meeting climate targets is a new paradigm for policymakers both in Ireland and across other EU member states. Our analysis in UCC undertaken for the Electricity Association of Ireland shows that renewables such as wind and solar are by far the best way for Ireland to reduce our emissions and our reliance on fossil fuels. They do this because they reduce the use of fossil fuels in power stations, but importantly, they do not replace the need for conventional power stations which will remain for the next 10-15 years especially during time of calm weather over north-west Europe. Decisions on building infrastructure to increase national energy security are complex because they involve value judgments of an uncertain future where large investment decisions must be made with imperfect information. What is clear is that all options to increase energy security in Ireland must be considered and eveluated, but it is not clear which are most appropriate and which options can be futureproofed to align with decarbonisation goals. All options for gas diversification and storage take time to deliver - two to three years at least and in the short-term, energy conservation in Ireland across Europe is key to enhancing energy security in Ireland. A 10% reduction in national energy consumption delivers the same supply benefit as building 4,500 MW of wind in Ireland. That is like doubling today's wind capacity in the Republic of Ireland. While there are external dimensions and risks to energy security such as the war in the Ukraine, there are also internal challenges that must be acknowledged, chiefly the lack of agility in our planning, permitting and delivery of energy projects in Ireland.

We have declared a climate emergency in Ireland, there is a war in Europe and we have an associated energy crisis, yet the pace of energy infrastructure delivery and action in Ireland is at odds with these emergencies. I acknowledge the large financial package and measures the Government has put in place to protect families and firms to help them manage this current energy crisis, but we have yet to deliver on a plan to mitigate against it. We must take ownership and responsibility for our energy production in Ireland while being mindful of our European obligations and we must progress our continued co-operation with our good neighbours in the UK. Ireland should play to its strengths as a country with large renewable potential. We must also address weaknesses in planning and acknowledge that it will take decades to deploy these renewable resources. We must prepare for an energy transition which is taking place against a backdrop of a volatile and uncertain future in Europe. We must be mindful not to let long-term optimism on the real potential of offshore wind and fuels like hydrogen blind us to the short-term vulnerabilities of our energy supply. Actions must be taken on national security options such as gas storage and demand conservation in parallel with a massive buildout of renewables and implementation of energy-efficiency measures.

Action must be taken on national security options such as gas storage and demand conservation in parallel with a massive build-out of renewables and implementation of energy-efficiency measures. Ireland's energy security challenge is not the future. It is the present and demands the highest level of political focus possible. These will be our insurance policies as we transition away from fossil fuels towards the goal of a clean, sustainable energy future.