Dáil debates

Wednesday, 26 October 2022

Development (Emergency Electricity Generation) Bill 2022: Second Stage

 

5:32 pm

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour) | Oireachtas source

I welcome the opportunity to speak for the Labour Party on this Bill. I join with Deputy O'Rourke in expressing frustration at the truncated nature of the debate and the fact that it is all being compressed into such a short timeframe.

It was particularly regrettable that the Minister of State did not get to finish his speech on the record but it is also frustrating for Opposition Deputies to be given such a short and tight timeframe in which to submit amendments and deal with legislation on such an important issue as the energy crisis.

The nature of the Bill and its content raise serious questions about failures in Government energy policy and the circumstances that have led us to the point where we need to pass the second item of emergency legislation this year in order to secure energy supplies, not even in the long-term future but the immediate future. It raises questions about how we can achieve the necessary steps to ensure we make the transition to renewable energy sources and a net zero future. It is a source of frustration to all of us that we are in this position again.

We have had emergency legislation already this year in this context. We passed the EirGrid Bill before the summer. We represented a responsible approach in Opposition and Deputy O'Rourke has expressed that well. This issue should and could have been addressed then and the concern is we may be back here again in another few months' time for another emergency Bill if longer-term issues are not addressed. The briefing note provided to us says all potential options under conventional planning processes have been ruled out as they would not enable delivery within the limited timeframe. That begs the question as to why things are being done in such a time-compressed manner. We are told this is coming within the framework of the exceptional cases provisions of Article 2(4) of the EIA directive. We also legislated for exceptional cases in the EirGrid, Electricity and Turf (Amendment) Act 2022, passed in a rush this summer.

As we have seen with the Derrybrien wind farm, failure to comply with EU environmental laws can have serious consequences. It is concerning that the State appears to be reliant on these exceptional mechanisms to ensure security of supply for the winter ahead. The situation is a result of a flawed and failed electricity supply market. When markets fail, we accept it is incumbent on the State to step in but it should happen in a more structured and strategic way, rather than through last-minute legislation. I think everyone would accept that, including the Government.

This Bill will allow for the installation of up to 450 MW and associated works at Shannonbridge and Tarbert generating stations. It also provides for a broadening clause to open up its provision for other suitable or appropriate sites. The new generators will be installed in the sites specified in the Bill but will the Minister of State indicate what criteria would apply for other sites to be deemed appropriate? On what basis would they be deemed appropriate? A number of my colleagues have tabled an amendment to delete the clause "or at alternative appropriate sites" in section 2. We in Labour will support that amendment unless we hear a compelling reason for that clause.

There is another matter of EU law it is important for the Minister of State to clarify. The central thrust of the Bill is to disapply the Planning and Development Acts and substitute a ministerial approval process for the development, on a temporary and emergency basis, of electricity generation to be in place for winter 2023-24, rather than this coming winter. I understand a roughly similar approach was adopted on a non-temporary basis under Part 4 of the Prisons Act 2007 in relation to the construction of new prisons. A key difference in that scheme was the requirement for resolutions to be passed by both Houses of the Oireachtas as a final step in the approval process. That is an important check and balance. I have tabled an amendment to provide for such an resolution to be passed in the Oireachtas for this case as well. I hope the Minister of State takes that on board. For such extraordinary emergency powers to bypass planning requirements, there might well be a specific approval provision on a case-by-case basis by the Oireachtas, where the Minister would have to address key climate metrics in each case. We will come to that amendment shortly, given the shortened timeframe, but I wanted to put the rationale for it out on Second Stage.

A key question I have for the Minister of State relates to the allocation and separation of responsibilities under EU law as between electricity generators and suppliers, on one hand, and the transmission system operator, EirGrid, on the other. It seems clear from the Bill that it is the intention that EirGrid be permitted or expected to apply for ministerial approval to carry out a "development [consisting] of the installation of up to 450 megawatts of temporary emergency electricity generation plant, site development and works ancillary to that installation, and the operation of the plant". However, our understanding has been that under EU law, EirGrid, as the independent transmission system operator, is not permitted to perform any function relating to electricity generation or supply. Will the Minister of State clarify why EirGrid is identified in the Bill as the applicant? Does this arise from the previous emergency legislation? Is our understanding correct or is some exception or derogation being relied upon in the current circumstances?

In a related question, it is our understanding that for similar reasons, EirGrid would generally be prohibited from owning, developing, managing or operating an electricity storage facility, but we are aware an exception is provided for, subject to conditions designed to ensure the transmission system operator does not become a player in the electricity markets. We seek clarity on that.

I think we all agree that the electricity sector has a central role to play in combating climate change. Clearly, achieving our emissions reduction targets will involve putting much more electricity from renewable sources on the grid, especially generation through using offshore wind capacity. I know Wind Energy Ireland briefed Oireachtas Members today on this. Where there is a great deal of potential wind power on an intermittent basis, the development of large-scale capacity to store excess electricity generated in this way and release it to meet demand will become crucial.

The promoters of the Silvermines Hydro 360 MW plant are expected to apply for full planning permission early next year, with delivery no sooner than 2028. There is a long lead-in for these projects and I am not aware of any other proposals promising delivery in a similar timeframe. Given this long lead-in, many commentators are convinced the engineering and logistical capacity to plan and deliver projects on the necessary scale within the necessary timeframes would be greatly enhanced by the active participation of the State sector, with the State and public sector supporting and providing additional capacity. There is a real and valid concern that private operators will not by themselves have capacity to provide the solutions needed soon enough. That is why we believe we need much more direct State intervention. The Government's policy statement of November last year acknowledged that one of the challenges to security of electricity supply is ensuring adequate storage capacity. It has specifically acknowledged the need for significant investment in additional storage capacity. What role do the Minister of State and Government foresee for EirGrid or the ESB in speeding up the deployment of clean energy by promoting a renewables-focused power system with a greatly improved energy storage capacity? Does the Minister of State envisage ensuring that derogations under EU law will be availed of, so as to enable the bank of engineering and logistical expertise in the commercial State sector to be brought into service in the national interest and ensure delivery of this urgent and demanding project? Our concern is it may well be a case of emergency legislation again to allow for fossil fuel-power generating capacity but without any sense of similar urgency for clean energy generated through renewables.

I am conscious we all have a much shorter timeframe than we might have liked. Will the Minister of State clarify in his wrap-up or on Committee Stage how it is intended that section 10 will allow the Minister to comply with the provisions of section 15 of the Climate Action and Low Carbon Development Act when it is so broadly defined? What is the manner that would be consistent with section 15 when the legislation provides in the proposed section 10 an open-ended caveat stating "to the extent that they consider practicable, taking particular account of the said exceptional circumstances and urgent and compelling necessity." How does that align with the provisions of the climate action Act?

We are all anxious to see Dermot McCarthy's review of energy security completed. I am sure the Government is also anxious to see that. Will the Minister of State update the House on the timeframe for that report? How will we go about seeing any recommendations in the report implemented in a more measured and structured way that will not mean we are back before the House in the coming months with yet more emergency legislation to guarantee energy security over this and coming winters?

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