Oireachtas Joint and Select Committees

Wednesday, 6 December 2023

Select Committee on Communications, Climate Action and Environment

Gas (Amendment) Bill 2023: Committee Stage

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

I will address Deputy Farrell's question. He asked whether we had a legal power to prevent connections to large energy users, or to data centres, directly from the gas network. I do not believe we do. However, my Department issued a policy statement disallowing direct connections by data centres to the gas network or, in other words, so-called islanded data centres. These are data centres that set up with a direct gas connection, which they then use to generate electricity. It is worth looking at whether we need a legal underpinning for this, but we will not legislate for it today.

I also want to discuss the question about the climate Act and whether its provisions will apply to GNI following this reorganisation of the structures.

Gas Networks Ireland, GNI, is a semi-State public body. Its shares are 100% controlled by Ministers, and it is therefore subject to the same criteria as other State bodies regarding its climate obligations. In particular, Gas Networks Ireland is a relevant body under the Climate Action and Low Carbon Development Act 2015, as amended by the Climate Action and Low Carbon Development (Amendment) Act 2021. The term "relevant body" includes a public body that is defined by reference to the Freedom of Information Act 2014, which GNI is subject to and will continue to be subject to with the passage of this Bill. As it is a relevant body, GNI is obligated to perform its functions in a manner consistent with the most recently approved climate action plan, the most recently approved national long-term climate action strategy, the most recently approved national adaptation framework and approved sectoral adaptation plans, the furtherance of the national climate objective, and the objective of mitigating greenhouse gas emissions and adapting to the effect of climate change in the State.

Our policy is that by 2030, 80% of our electricity will be generated from renewable sources. Clearly, that means a large reduction in the volume of gas being used. At the same time, we are building new gas power stations. In other words, we are going to have more capacity to burn gas at peak times to make up for times where we do not have sufficient renewables to power the grid.

Gas Networks Ireland does not get a free pass on its decarbonisation. It has to have a decarbonisation strategy, even though its function up to now has been burning fossil fuels. A lot of that will be based on how Gas Networks Ireland manages biomethane and hydrogen. As those decisions are being ironed out in the EU in the coming weeks, I would suggest that we discuss this on Report Stage. As a result, I am not proposing to take these amendments.

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