Dáil debates

Tuesday, 7 March 2023

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

 

6:05 pm

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

This Bill is essential. I do not share the belief of some that we should try to delay its passage. The officials from the Department and from the CRU were convincing when they briefed us. The terms of an environmental impact assessment that would otherwise have taken 12 months to create are being modified.

This will be shortened so that an EPA licence can be granted. There will still be scrutiny, consultation and opportunities to make submissions. The case is very strongly made that we need this. We need the 262 MW in Shannonbridge, the 150 MW in Tarbert, the 191 MW in North Wall and the 50 MW in Huntstown. These are very important. The CRU pointed out that without them we would see a 30% increase next year in the inadequacy level of our grid provision. This would constitute an additional risk. One thing that families do not need at this stage is further risk and the risk of the lights going out. It is right that we go ahead with this. We should ask why the need for this modification in the licensing procedure had not been anticipated. We had emergency legislation previously. A critical path would have identified that the licence was needed. I do not know why it is not included in the previous legislation.

We also need to fair to the CRU and EirGrid. They are charged with ensuring the adequacy of the system. They have avoided alerts over the winter period. This is against a background of a loss of load expectation in 2023 of 118 whereas the target for safety is just eight. We are exposed and we need to accelerate this as well as take other measures.

It will be interesting to see the McCarthy report. Unlike some on the Opposition benches I have not already decided what the outcome of the report will be. I will wait to see what it is. At meetings of the Oireachtas committee I saw quite trenchant arguments between agencies with responsibility for adequacy who were criticising one another. There will be issues that we need to resolve. It is simplistic to point the finger at the Government with regard to some of these areas. We need to get to the bottom of this and take the measures that need to be taken to make sure it does not happen again.

We need to streamline the path to renewables. I hope the Government is absolutely determined to deal with planning or other obstacles. We rightly have the ambition to be a renewable energy hub not only for ourselves but for Europe. This also means providing for data centres. I do not hold with some who pretend that data centres are at the root of all our problems. We have created a competitive advantage in the communications sector quite deliberately. Data centres are part of this. Of course they have to be managed prudently and I know the Minister is doing this.

We also need to look at other things we are doing or not doing as the case may be. We have installed smart metres and they are not being used. We need to have more smart controls in the home. We are not pressing them enough. They should be in the 80% support category, which is the same as cavity wall insulation and attic insulation. We need more commercial battery storage. We need community energy advisers to complement the warmer homes scheme. It was interesting to see the Society of St. Vincent de Paul coming out in favour of community energy advisers. The warmer homes scheme is becoming a bit too rigid. There will be only 6,000 in the scheme next year and they will all be pretty deep retrofits. In an energy crisis such as this we should have community energy advisers to pick up lower-grade improvements and do them quickly and smartly under the warmer homes scheme. In France there is the sobriété énergétiquecampaign. I am sure the Minister knows about it from his colleagues. People are being asked to reduce their energy use by 10%. It has been very successful. We need to look at how we cut back on energy, not in terms of people being in cold homes but by putting in place smart controls and having good demand management strategies for industrial and domestic use.

We must be very conscious of the price that people must pay. I acknowledge the Government's move in introducing an €800 electricity credit, a €1,324 fuel allowance and a €420 household package. These are very helpful to people who are eligible for them. Energy providers, and in particular renewable energy generators, should recognise they have been creaming considerable windfall gains. Even the European windfall cap that will be introduced on renewable energy generators will leave them with very generous profit margins. They should look at this as an opportunity to win public support for the wind capacity and renewable capacity that we need as a community by showing some willingness to cut back and take lower profits at this time. They are earning super profits. They should give families a break. It would be good in the long-term interests of the development of the sector for it to show this generosity of spirit. We should also have the removal of barriers to more renewables. There has to be something on both sides. In the first half of last year they enjoyed wholesale energy electricity prices of €100 per MWh and it was €200 per MWh in the second half of last year. Very generous profits have been earned. Many of them contracted at approximately €75. They are earning significant amounts and they should show some understanding of the pressure that families are under at this time.

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