Dáil debates

Tuesday, 7 March 2023

Environmental Protection Agency (Emergency Electricity Generation) (Amendment) Bill 2023: Second Stage

 

5:45 pm

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael) | Oireachtas source

I welcome the opportunity to make a contribution on this Bill. As a member of the Committee on Environment and Climate Action, I must mention that waiving of pre-legislative scrutiny has become quite common, especially in this area. Of course, I fully understand and appreciate the rationale the Minister has set out and I appreciate the briefing we received from the Minister's officials in the making of that decision. Nonetheless, it is necessary to note it. It would be my preference that we would not have to deal with emergency legislation, but I understand the circumstances in which the Minister and the Department find themselves.

This Bill gives an opportunity both to address the deficiencies in the framework that allows for grid development and to ensure we are capable of keeping the lights on. Without proper planning and sustainable development of the grid, these deficiencies will hinder our ability to cater for the level of renewable energy inputs that will shortly join our grid throughout the country and offshore.

Clean energy will define the coming decades in this country. It will be consequential to our efforts to deliver jobs and innovation, and it will play a pivotal role in the decarbonisation of our society. A coherent and ambitious process that has already begun must be enhanced in the years ahead to allow our country not only to provide clean affordable energy at home but also potentially to become an energy exporter, bringing inward wealth to our country that to date has been a distant concept.

The debate taking place within many homes is about the huge energy bills they are receiving. While these energy prices have been driven by many external factors, it does not mean we cannot take action at home to ease the financial burden on families and individuals. Throughout this time, energy companies have made huge profits well beyond what they would normally expect. I welcome the work that is under way to introduce a windfall tax on such companies, and I hope the result is of more assistance to people and businesses in paying their energy bills.

It would be remiss of my not to use the opportunity to mention wholesale gas prices, which rose sharply over the past year. A significant amount of this increase was passed on to customers in both the residential and business sectors. We are now seeing those wholesale prices starting to fall but we are not seeing the same rate of reduction drop for the bills that are arriving in customers' homes and businesses. I am, therefore, encouraged by recent comments by the Taoiseach and others about ensuring this reduction is passed on to customers by energy providers, notwithstanding the very limited reduction delivered by two suppliers in the past week.

Over recent months, the Government introduced important protections and supports, including the series of energy credits provided to each household, a wide range of increases in supports provided for under budget 2023, and other measures. The rise in energy prices is part of a much wider increase in the cost of living. We must send a message to people and businesses that we will step in and use some of the hyper-profits amassed, in particular by State-owned energy companies, to help people manage the rising cost of living.

I am encouraged that wind energy has had its best January on record in January 2023. This result must be built upon in the time ahead. Developing the wind energy sector in Ireland offers a significant opportunity but must be supported to by Government if we are to realise its potential. I noted Deputy Bacik's comments on the slowness of offshore wind energy development. While I agree it is slower than we would like to see achieved, the wind farm off the coast of Scotland recently visited by the committee, of which there are three members present, two of whom took part in that visit, took 14 years to deliver. The same company, which is now in the midst of a joint venture with Bord na Móna, is talking about being able to deliver such a project in less than seven years. We have learnt great lessons from other jurisdictions. Our ability to deliver upon our own ambition will be tested in the coming years, but there are measures we are taking, both as a Government and as a committee, to make the process happen all the faster.

Significant work has been done on developing a national hydrogen strategy but we have yet to see the publication of this. Hydrogen is crucial to solving several of the storage barriers the renewable energy sector faces. It is imperative the Government publishes this strategy, which many other jurisdictions have already in place. When published, it will provide much more clarity to businesses and the wider Government as to how to harness this power and plan for the future.

We must employ all options in the effort to deliver clean energy that meets demand in both public and private realms. A review of direct lines or so-called "private wires" is committed to under the programme for Government, and I would like to see progress being made on that as well. These routes of supply are currently unavailable on a wider basis due to the Electricity Regulation Act 1999. We need to deliver a clear plan on this aspect of energy supply which can play a positive role in meeting demand and unlocking the potential of some local areas.

Like many in this House, I look forward to the launch of the small-scale energy generation scheme, which I understand will be delivered later this year, providing an important bridge between microgeneration and large-scale projects taking place within the State.

The electrification of our public transport system requires a reliable and sustainable energy supply and is becoming ever more important as we aim to increase the number of passengers on the public network.

I understand this was subject to discussion today.

The generation of renewable electricity can provide a sustainable future for our country. However, we have little time to lose. I hope that, in time, we can as a society look back on recent years' developments and recognise we were laying the groundwork for a brighter, cleaner and healthier future.

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