Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

You are okay. It is proposed to take amendments Nos. 2 and 3 together.

During Committee Stage, both Deputies Ryan and Smith expressed their views and their promotion of demand-side participation, flexibility and community participation in energy markets in order to provide mechanisms for consumers to participate actively in the market through production, sale and possible storage of electricity and to allow for aggregation services in the market. I stated on Committee Stage that I believe the concerns of both Deputies are already substantially provided for in the existing legislation, specifically under section 9(4)(b) of the Electricity Regulation Act 1999. Furthermore, the policies advocated by the Deputies were also supported in the energy White Paper published in 2015. The White Paper acknowledges the crucial role of citizens in the transformation towards a decarbonised electricity sector. It acknowledges that community-led energy efficiency and renewable energy projects will play an important and vital role in the energy transition.

In order to accommodate the Deputies, I propose to accept the text of the revised amendment proposed by Deputy Ryan, which amends section 9 of the Electricity Regulation Act 1999. The amendment is consistent with the policy to increase electricity market flexibility, encourage demand response, facilitate renewables and foster the integration of the Irish electricity markets with other EU markets. The majority of the issues raised by the Deputies are being considered and implemented as part of the wholesale electricity market redesign that will be delivered by the regulators next year. We will also consider the issues of electricity market flexibility, active citizen participation in the markets, demand management and innovative services in the market in the context of the European Commission's legislative proposal due for discussion and negotiation by the member states later this year.

The issues of community engagement, electricity generation consumption and demand reduction are important policy matters and are highlighted in the programme for a partnership Government and in the energy White Paper. The issue of grid access for communities is also a crucial matter for development of this sector and this is why it is prioritised in the White Paper. I am happy to accommodate Deputy Ryan's amendment that highlights the importance of this policy consideration, noting the Commission for Energy Regulation's, CER, ongoing consultation on grid connection policy, which considers the issue of community grid access. It also takes account of my Department's forthcoming consultation on the support of the renewable sector, including community-owned projects.

I commend Deputy Smith's efforts to develop an amendment on this issue but I ask the Deputy to withdraw it and to consider supporting the revised amendment put forward by Deputy Ryan, including the paragraph related to the policy vis-à-viscommunity projects and grid connection that we are accepting. It is Government policy to support and facilitate community participation in the electricity market. However, this must be done with due reflection and consideration of the implications for all electricity consumers, including those who do not have the means or the opportunity to benefit from participation in community undertakings. Those with the means and the opportunity to benefit from involvement in community participation in the electricity market should not be allowed or be prioritised to do so at the expense of those who cannot so participate. It is for this reason that I believe we should not accept Deputy Smith's amendment, well-intentioned as it is, without in-depth and detailed consultation and citizen engagement. This is why the CER has carried out a considered and detailed public consultation involving citizen engagement, honest connection and grid access policy.

Just to explain what we are talking about here, there is the potential for an unintended consequence in relation to Deputy Smith's amendment No .3. I agree with the principle of it. I said that on Committee Stage. We have tried to reflect those concerns in the amendment that has been tabled by Deputy Ryan. However, we have seen in other EU countries that the people who have connected to the grids are the people who have the resources and the capacity to do so. Yet, people in fuel poverty have actually ended up funding that connection to the grid in reality. There are additional costs associated with connecting small renewable projects to the grid. I agree that they should be connected but we should not be asking people who are in fuel poverty or those that do not have the resources to connect their own renewable projects to the grid to fund the total cost of this, or a substantial amount of it. I know that would not be Deputy Smith's intention or objective, but it is a potential unintended consequence of the amendment as it is currently worded.

The consultation that CER is involved in takes account of the Government policy to facilitate community energy schemes as stated in A Programme for a Partnership Government and the White Paper for energy. CER is looking at all of the complex issues around this at the moment with the objective of reflecting in the best possible way the issues that Deputy Smith has rightly been raising, that have been stated in A Programme for a Partnership Government and in the energy White Paper. I also believe that it would be premature to legislate on this issue in advance of the forthcoming Government consultation on renewable energy schemes, which includes consideration of community schemes. We will be putting forward detailed proposals for public consultation. We believe that the public should have a direct input into the final structure of this before we legislate for it. Only after such public consultation and citizen engagement would it be appropriate to develop primary legislation, if it is necessary at all, to promote community energy schemes. Our energy White Paper commits us to undertake such consultation before we develop policy, including in areas of community ownership and renewable supports.

The issue of community ownership is not black and white. Currently, we are very much engaged with this with the wind energy regulations. I have received as many suggestions on what community ownership and participation should be as I have on the setback distances of wind turbines. It is not as black and white as people might be lead to believe. It is important that there is flexibility. What is in the interest of one community and what that community wants to get involved in is not necessarily the formula that will work in another community.

As Deputy Eugene Murphy knows, I see that in our own county concerning different renewable projects with can have different impacts in communities.

In addition, under our existing long-standing electricity regulation legislation, the Commission for Energy Regulation and the electricity system operators have strict legal obligations on non-discrimination between users seeking to connect to the electricity grid. This amendment is in conflict with that obligation.

It would not be appropriate to insert such an amendment, as drafted, adding to the service functions as a licence condition under section 14 of the Electricity Act.

I further caution that Deputy Bríd Smith's amendment, as drafted, if accepted by the House would have to undergo suitable due diligence with regard to its alignment with and impact on the broader legal and regulatory framework as it currently exists before it could be considered whether it could be commenced.

I hope Deputy Smith can consider what I have said. We are both on the same page concerning this and we both want the one objective. I ask Deputy Smith to work with me in the consultations that will take place. If it requires primary legislation then we can progress that issue either from this side of the House or the other side, but it may not require such legislation. Let us see what comes out of the public consultation first because, as I said, this is not as black and white as it might seem.

Deputy Eamon Ryan raised the issue concerning the Electricity Regulation Act 1999 and the amendments thereto. He is right in that it needs to be addressed. It is impossible to read that legislation currently. I have a formal response on it which should be in the Deputy's in-box at this stage. We are quite willing to work with Members to see that consolidated legislation moved. How we progress that is something I can talk about to the Deputy or other Members privately. There is merit in what he is saying, however.

Deputy Ryan has tempted me about this free pass we have got to 2030, but it is anything but a free pass. Deputy Ryan knows probably better than anyone else in this House that the commitments we signed up to for 2020 could not be achieved. They were set at a benchmark that we did not have. We did not put forward the date that could substantiate having a proper and realistic target in place. Sadly, because we signed up to a pig in a poke at the time, we are now potentially facing fines. Missing our target by 1% will cost us €150 million per annum. That money would be far better spent in supporting Deputy Smith's initiatives to encourage community participation, as well as dealing with energy efficiency issues for communities across the country and particularly for older people.

Earlier, Deputy Eugene Murphy and myself were talking about the quality of houses in many rural areas, which need significant investment to bring them up to today's required insulation standards. That can provide benefits for people including comfort, as well as dramatically reducing energy bills. Every barrel of oil that is not purchased has a direct impact on our environment. I would rather see that money being spent on dealing with Deputy Murphy's constituents and the issues raised by Deputy Smith, than paying it in fines because of the way we signed up to this.

Over the next 400 months, I am committed to bringing the Government, and future governments, along that road in order to have a decarbonised society by 2050. I see the 2030 targets, which are only 160 months down the road, as a stepping stone along that route. I have the same objective on this as Deputy Ryan. It is important, however, to set achievable, realistic and affordable targets. We should not set targets that have been unattainable and unachievable from the day we signed up to them.

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