Darren O'Rourke (Meath East, Sinn Fein) | Oireachtas source

I welcome the opportunity to discuss this Bill. Sinn Féin will not be opposing it, although, as we have said at committee meetings and when dealing with similar legislation in this House, we are very frustrated with the process. It is no way to do legislation. It should be acknowledged and recognised that we are in this situation due to the spectacular mismanagement of our energy system. It is now an emergency situation where the Government is rushing through legislation and, essentially, making it up as it goes along, instead of recognising the hurdles it has to pass. We had the development Bill a number of months ago when we are advised that it was the key to unlocking these developments. Here we are a number of months later with more legislation to deal with EPA licensing, specifically industrial emissions licences. That architecture is there, in terms of planning and EPA licensing, for a very good reason. It is most regrettable that we find ourselves in a situation of having to tinker with that legislation or to dilute it in any way on the one hand, while on the other hand, running the real risk of the lights going out this winter and in the time ahead. It is an absolutely incredible situation in which we find ourselves. More needs to be done to shine a light on how we got to this point. In his concluding remarks, I ask the Minister to provide us with an update on the Dermot McCarthy report into energy security and the T-4 auction. Where is it at and will the full report be published?

Sinn Féin will not oppose the Bill. This is no way to do legislation. It is a serious step to seek to dilute these measures. It is important to recognise at the same time the significant adequacy gap that has been repeatedly highlighted by the CRU and EirGrid. It emphasises two points: one, the importance of getting this transaction, this planning, right; and, two, the spectacular mismanagement of our energy supply on the one hand and demand on the other. We, on the Oireachtas Joint Committee on Environment and Climate Action, pursue the CRU for regular engagement and updates. It is not always satisfactory engagement but in the most recent response from it, projecting to winter 2023-2024, the CRU stated that the energy system will remain at significant risk throughout 2023 and into 2024, similar to this winter. This winter is not over yet, from the CRU's perspective, and we know we have several tough days of weather ahead of us. It stated that it would be well outside the reliability standards set by the CRU and that in the absence of any further generation capacity being delivered, winter 2023-2024 is currently forecasted by EirGrid to have an adequacy gap of 490 MW in a median demand scenario and that this compares to an adequacy gap of 380 MW over this winter.

It emphasises the increasing tightness of the system and the importance of bringing on tranche 2 temporary emergency generation project. It also serves to highlight a number of factors that have contributed to the increase in tightness, such as our capacity constrains and generation capacity deteriorating and coming off line, in addition to increasing demand. We can point towards large energy users, or an electrification of heat and transport to a lesser degree, but it is clear there are several unique features to the Irish system that responded to Government incentives and policy in recent times.

I refer to a response from the CRU, dated 1 March 2023, on the number of islanded data centres. It is an issue that arose last summer and the Minister said he would intervene in policy terms. However, the CRU has confirmed that the number of island data centres that are connected, and scheduled to be connected, as advised by Gas Networks Ireland, as of February 2023 is that 11 data centre sites are contracted to connect to the gas network directly. While the rest of Europe was weaning itself off gas or reducing its demand, in some cases very significantly, there was an increase in demand in Ireland not by our residential customers but by the system itself. Something needs to be done to respond to that unique feature. There are energy companies in Ireland with secure gas supply and gas power stations building data centres without tenants.

They are building the data centres without demand but as customers for their gas supply. That policy of islanded data centres is completely inconsistent with the energy transition and needs to be addressed.

Sinn Féin has submitted a number of amendments to this legislation. In his opening address, the Minister said he wants to work with the Opposition. We engaged in the Joint Committee on Environment and Climate Action when pre-legislative scrutiny was waived. We are correct in our assessment that this is no way to do policy. We are here again despite having been told a number of months ago there was an urgency and that the legislation under consideration at that time was the key to unlocking everything. That is confirmation that this is no way to do legislation.

Our amendments point towards the wider problem here, which is on the demand side. We wanted reports prepared to examine the level of increased demand from large energy users in the period 2017 to 2022 and a breakdown of the large energy users that participated in demand-side reduction mechanism during that period. We also wanted a critical appraisal of existing demand-side reduction strategies, which is desperately needed. Equally important, if not more important, we wanted a comprehensive plan to ensure the prioritisation of demand-side reduction measures over increased electricity generation into the future.

In the coming weeks and months, the Minister will have the report of Mr. Dermot McCarthy to tell us how we got here. Hopefully, we will get to a position where we get through this winter, which we are not through yet, next winter and the winters ahead. We need to learn the lessons of this experience. I put the blame firmly on the policy of successive Governments and their failure to manage our energy system. We also need that demand-reduction strategy. I can say at this stage, because of the rushed nature of this legislation, that our amendments have been ruled out of order. That does not mean they are not good, relevant amendments that should be acted on. That is why I wanted to raise these issues on Second Stage. We need a comprehensive plan to ensure the prioritisation of demand-side reduction measures over increased electricity generation into the future. That needs to form a cornerstone of energy policy into the future. As I said, we will work with the Minister in the days ahead to get this legislation through but it is most regrettable that we are here in the first place.

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