Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank the Cathaoirleach and the committee for this opportunity to present details of this Supplementary Estimate for Vote 29 - Department of the Environment, Climate and Communications. The main purpose of this Supplementary Estimate is to provide the necessary funding of €926.606 million for the electricity costs emergency benefit scheme and €12 million for the business solar scheme in the energy transformation programme area.

The Supplementary Estimate will also provide for the reallocation of a total of €67.4 million to provide additional capital funding in 2023 to the national broadband plan, NBP, as the programme will exceed its planned delivery for the year. The additional activity is allowing the programme to continue to claw back in 2023 delays in roll-out in previous years. This request was considered by the Joint Committee on Transport and Communications yesterday.

On the electricity credit, the Government took steps in 2022 and 2023 to help alleviate the burden on households of the rapidly increasing energy costs when we provided support of €800, including VAT, to be applied to domestic customers’ energy bills under both the first and second electricity costs emergency benefits schemes. However, electricity and gas prices have continued to remain high due to international conditions, in particular the current challenges and volatility arising from the crisis in Ukraine and the Middle East. Indications are that this trend will continue for the foreseeable future.

The Government has decided to further support domestic customers through the winter of 2023-2024 with a third electricity benefit scheme and this consists of a €450 electricity credit to be applied in three instalments between December 2023 and April 2024. This undertaking comes with a cost of €926.606 million. The 2023-2024 scheme takes account of households that may not have an individual meter point reference number, MPRN, and where an existing dwelling has been divided for the purposes of accommodating additional people and submeters are in place linked to the main MPRN.

Moving to the business solar scheme, subhead B5 - other energy efficiency programmes, provides for the grant funding and operational costs for the public and commercial sector energy efficiency programmes administered through the Sustainable Energy Authority of Ireland, SEAI. A sum of €12 million in additional funding is required to support business solar endeavours through the non-domestic microgeneration grant. This grant provides support to businesses and other non-domestic applicants to engage in microgeneration for self-consumption. The initial scheme, in operation since September 2022, had a maximum grant value of €2,400 and both the SEAI and industry representatives indicated it was not having the desired effect in supporting businesses to invest in solar photovoltaics, PV, due to its terms and conditions of operation. The scheme was amended on a pilot basis from July 2023 to support a wider range of businesses and non-domestic applicants to invest in solar PV installations by supporting installation sizes of up to 1000 kWp, which is the equivalent of 1 MW, with a maximum grant value of €162,600. The scheme is being funded by way of a transfer of €12 million from the Vote of the Department of Enterprise, Trade and Employment in 2023. The transfer will go into my Department's Vote. This transfer of funds will be by means of this Supplementary Estimate and the Department of Enterprise, Trade and Employment surrendering the same amount of funding from its Vote at year end.

The expanded scheme supports Ireland’s ambitious 2030 renewable electricity targets as well as providing additional security of electricity supply and contributing to decarbonising non-domestic electricity use. Investing in solar PV offers businesses an enduring solution to manage the impact of high and volatile electricity prices while also reducing their own emissions and supporting the local electricity grid. With the additional challenges identified in the 2023 climate action plan in relation to demand flexibility, supporting businesses to invest in solar PV will also facilitate businesses to be able to participate in demand flexibility schemes in the future.

The reallocation of €67.4 million to the NBP is possible due to savings identified within the following subheads. Under programme A, climate action and environmental leadership, there was €600,000 in A4, environmental and climate research, and €3.1 million in A8, just transition. In programme B, energy transformation, there was €27.7 million in B4, residential-community retrofit programme; €700,000 in B6, other energy programmes; €10.6 million in B7, energy research programmes; and €2.3 million in B15, residential retrofit loan guarantee scheme. In programme C, circular economy development, there was €2.5 million in C4, Geological Survey of Ireland, GSI, services, and €10.8 million in C6, waste management programme. In programme D, connectivity and communications delivery, there was €2.7 million in D4, other communications infrastructure; €3.5 million in D6, National Cyber Security Centre; and €2.9 million under D7, emergency alert system.

I am happy to take questions from the committee on any aspect of this Supplementary Estimate as it relates to the electricity credit and the business solar schemes.