Dáil debates

Wednesday, 26 October 2022

Development (Emergency Electricity Generation) Bill 2022: Second Stage

 

5:12 pm

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party)
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I move: "That the Bill be now read a Second Time."

I thank the Leas-Cheann Comhairle and Deputies for the opportunity to present this Bill. Having regard to the unprecedented pressures on the energy sector, I am pleased to have the opportunity to commend the Development (Emergency Electricity Generation) Bill 2022 to the House. I shall open the debate today by setting the context for the action to be taken on foot of this Bill, which will provide for emergency measures for temporary electricity generation development to ameliorate problems in this area and to protect the security of electricity supply in this State in light of the exceptional circumstances that have arisen in the market in that regard and because of the situation in Ukraine. Although many Members will be familiar with these issues, it is important to take this opportunity to set out the complex situation we find ourselves in with regard to security of electricity supply and the wider pressures on the energy sector. I will also describe the sections of the Bill in detail, set out the background to its main provisions, and explain why those provisions are needed. My overarching message today is that, while the provisions of the Bill are part of a broader programme of actions, it is critical this legislation is passed in as short a time as possible to provide for a critical step in the process of providing for temporary electricity generation.

I, therefore, seek Members' support to achieve that. I will first discuss the generation capacity shortfall that exists, which the provisions in this Bill seek to alleviate by providing for the disapplication of existing approval processes and a new alternative application, assessment and ministerial approval process for temporary emergency generation projects that will deliver up to 450 MW for winter 2023-24. Second, I will reaffirm the urgency of this Bill in order to enable the delivery of emergency capacity to maintain a secure electricity supply for customers. Finally, I will outline the Bill itself.

On the factors affecting security of electricity supply, Deputies will appreciate that we in Ireland face additional pressures due to our geographical location, low levels of interconnection with other countries, our fossil fuel dependency and the smaller scale of the Irish market compared to many other European countries. However, the most immediate factor affecting security of electricity supply in Ireland over the coming years is the potential generation capacity shortfall that was identified in EirGrid's all-island generation capacity statement, GCS, published in September 2021. This potential capacity shortfall arises in periods of peak demand coinciding with low renewable and interconnector availability, and it arises largely due to non-delivery of previously contracted capacity, increasing electricity demand and the increasing unreliability of existing plants. This is a critical point. The State needs to react to an unprecedented situation it has been presented with and which has been unfolding over the course of the past year. This is an electricity emergency and emergency powers have already been used to address it.

The Commission for Regulation of Utilities, CRU, has statutory responsibility to monitor and take measures necessary to ensure the security of electricity supply. It is assisted in this role by EirGrid, Ireland's electricity transmission system operator, TSO. On 7 June 2022, the CRU directed EirGrid to procure, using the most expeditious means available, approximately 450 MW of additional generation capacity from winter 2023-24 to winter 2025-26 to ensure a secure electricity supply. This temporary generation capacity will be in place until more enduring capacity can be delivered through regular market auctions. This procurement process was provided for in other extraordinary legislation passed through these Houses in the summer, in the form of the EirGrid, Electricity and Turf (Amendment) Act 2022. EirGrid commenced the procurement process on foot of this legislation passing. Until such time as the proposed equipment manufacturer and the selected sites were known, it was not possible to know what time was available to secure the relevant consents in line with existing legislation. Now, as a result of the requirement for early site preparation works and the long lead-in time for the commissioning of the equipment, it is apparent that extraordinary emergency measures are required to ensure works can commence to provide for emergency generation by winter 2023-24.

The legislation before the House today will ensure the next tranche of two emergency generation projects, which will provide 450 MW of additional generation capacity, can be delivered by winter 2023-24. It is the next step in the process. Delivering the proposed legislation will ensure preparatory site works can commence as soon as possible, followed by development works over the course of 2023. While this legislation facilitates security of supply through the provision of temporary generation, which ensures there is sufficient reserve capacity on the system to enable security of supply in the peak periods when there is low wind and low interconnection available, it is important to note that this will not impede any of our plans for renewables, interconnection, batteries, demand-side response or energy efficiency. This emergency generation does not replace our long-term ambitions for renewable energy, which will continue at pace. In order to ensure the security of our electricity supply over the coming years, it is vital that this legislation be passed as expeditiously as possible. This will ensure the next tranche of two emergency generation projects can be brought forward within a timeframe that would enable preparatory site works to commence as soon as possible, followed by substantive development works over the course of 2023, allowing generation to commence in winter 2023-24.

This capacity will remain available until the necessary replacement capacity has been secured. I note that the procurement process is inexorably linked to the provisions of the EirGrid, Electricity and Turf (Amendment) Act 2022, which indicates that these projects must cease operation in 2027, with an option of a further year if required but only if such a resolution is passed by both Houses. The temporary generation will be used only when needed and will be used as a backup in addition to existing generation capacity in the electricity market.

As a result of the extremely tight timelines for delivery, pursuing the standard route through the planning system will not meet the timeframe required for these projects to be completed by winter 2023-24. Furthermore, even complying with the existing emergency provisions in the Planning Acts would not permit site works to commence in the time needed. This legislation is therefore required urgently in order to ensure an application can be made, most likely by EirGrid, for the designated developments. This will likely be in November to allow for a decision to be made in December, in order that site clearance works can commence as soon as may be possible. This is an ambitious timeline but we need to do everything in our power to facilitate the development of this emergency generation. The State will not be the barrier to progress here. We are using extraordinary measures in an unprecedented situation.

I will devote my remaining remarks to the Bill's subject matter. This Bill seeks to disapply the Planning and Development Act 2000. It clearly states that the designated development, that being the provision of up to 450 MW of emergency generation, is considered to be an exceptional case for the purposes of exempting it from the provisions of the environmental impact assessment, EIA, directive. It also provides for a new alternative application, assessment and ministerial approval process for the temporary emergency generation projects to deliver power by 2023-24. I would like to clarify that by passing this legislation, the Oireachtas is not approving any development. Rather, it is providing for a predetermination that an exceptional case exists for the purposes of Article 2(4) of the EIA directive and providing for streamlined and accelerated consenting procedures.

Many of the provisions set out in this legislation are already on the Statute Book. For example, a Minister of the Government may disapply the provisions of the Planning and Development Act by order in accordance with section 181(2)(a) of same. I have done so myself for another emergency generation project at North Wall. The Planning and Development Act also provides that an application can be made to An Bord Pleanála to exempt a development from the requirements of the EIA directive, as set out in section 181(2I) of the Act. These procedures are in and of themselves not streamlined enough for the extraordinary situation that we find ourselves in and alternative processes must be provided for. All potential existing options under conventional and emergency planning processes have been considered. They have been ruled out on the basis that none could enable delivery of the emergency capacity within the timeframe needed. This Bill is therefore required urgently in order to ensure that an application can be made and site clearance works commenced as soon as possible. We need to progress this project quickly and we need to do it now.

Finally, I will provide a section-by-section summary of the Bill. There are 12 sections in the Bill. Section 1 is a standard provision, which provides for definitions. Deputies will note the reference to An Bord Pleanála. I am providing for an independent assessment of the proposals. Section 2 provides that a specific electricity generation project of up to 450 MW of temporary emergency generation and ancillary works, intended to be located on two separate sites at Shannonbridge and Tarbert generation stations, is a designated development for the purposes of the Bill and is required for the purpose of ensuring security of electricity supply. This section also sets out that the designated development may take place on a phased basis and is not likely to have significant transboundary effects. Section 3 provides for the disapplication of the Planning and Development Act 2000. Section 4 provides that EirGrid or any other person may apply to the Minister for the Environment, Climate and Communications for approval to carry out a designated development.

Section 5 sets out that the designated development shall be exempt from the provisions of the EIA directive on the basis that the designated development is an exceptional case allowable under the directive and that the application of the directive would adversely affect the purposes of the designated development. It also provides that the Minister shall arrange for an alternative assessment to be carried out and that this assessment is carried out by An Bord Pleanála. I note that this goes further than the requirements of the directive in that it mandates that an alternative form of assessment be carried out. It also sets out that this assessment of the designated development carried out by An Bord Pleanála is co-ordinated with any appropriate assessment pursuant to the requirements of the habitats directive. Section 6 provides that an assessment of the designated development shall be carried by An Bord Pleanála for the purposes of the habitats directive in accordance with the relevant regulations, subject to modifications that the Minister may prescribe. Public consultation is mandatory where an appropriate assessment is required. It is my intention to make the information in respect of any such assessment available to the public for inspection and views.

Section 7 provides that, having considered an application and associated assessments, including any mitigation measures, the Minister may approve, approve in part, or refuse to approve the designated development. It also provides for instances where a derogation is granted for the purposes of-----

5:22 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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I ask the Minister of State to please finish because we are squeezed for time.

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party)
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I request that the rest of my speech be read into the record.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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It is ironic. Such is the curtailed nature of this whole debate, the Minister of State cannot deliver the most basic of remarks reflecting the contents of the Bill within the guillotined time he has.

Perhaps the Minister of State, Deputy Ossian Smyth, knows how we feel on this side of the House on so many occasions when it comes to legislation and emergency legislation from the Minister.

This is yet more emergency legislation that is being rushed through by the Government due to the unmitigated failure to manage our electricity demand and supply. It is quite remarkable that we are now being asked to completely set aside important planning and environmental conditions for the installation of 450 MW of power generators. In effect, it is more than a topical issue; I would say that it is a national scandal.

At the outset, I must state my discomfort about bypassing the planning and environmental impact assessment process, as that brings with it obvious risks. In truth, it is an invidious position for the Opposition. This Government has walked the State to the cliff edge when it comes to energy security, electricity supply, and the risk of blackouts. As a result, we urgently need backup generators put in place to try to help keep the lights on in the coming winters. This is acknowledged and we will be responsible in our opposition.

As I have said before with regard to previous legislation and it also applies to this proposed legislation, this is no way to do scrutiny and is no way to do legislation. The Bill received no pre-legislative scrutiny and is being rushed through all Stages in one day. It is curtailed in a way that is far more extreme than we are used to, such is the nature of it. It is a dreadful approach. It is the wrong approach. I would imagine that it is, at least in part, related to the absolute chaos and frantic goings on within the Department and within the Ministry.

The Bill seeks to set aside normal planning and environmental requirements to allow emergency electricity generators to be installed quickly at two existing power plants, Shannonbridge and Tarbert, or at some as yet unidentified place, for operation in the coming winters. Despite the fact that Ukraine is referenced in the Title, we do not need these generators because we have just run out of gas due to that dreadful war. We do not need them because the shipments of oil have stopped. We need these extra generators because of the spectacular mismanagement of our electricity supply and demand over the past number of years. Successive Governments, the CRU, and EirGrid all share some responsibility for this failure. We simply do not have enough generation capacity to meet the growing electricity demand. This is despite repeated warnings over a number of years about the growing shortfall. Again, this is unrelated to the conflict in Ukraine. The Government should take responsibility for its failures in this area and not try and hide behind other external factors.

Last June, when we were dealing with another emergency item of legislation, the EirGrid, Electricity and Turf (Amendment) Act, the Minister, Deputy Eamon Ryan, told us he had appointed the former Secretary General at the Department of the Taoiseach, Dermot McCarthy, to undertake a review of how we ended up in this crisis. That is appropriate. Will the Minister provide an update on the status of this review? When will the review be completed and will he publish it in full? Will there be accountability up to and including ministerial level and the agencies?

We do not need to wait for the McCarthy review to tell us some of the contributory factors. EirGrid has said that since 2016, its generation capacity statements have warned of an increasing tightness between demand and supply. In addition, EirGrid issued 18 amber alerts since 2017, with 17 of these since this Government took office in 2020. These were all flashing red lights that went unheeded.

All the while, it was full steam ahead for the rampant increase on the demand side and especially in the expansion of data centres. The policy was to make Ireland the data centre capital of the world. We all recognise the role data centres play in a digitised society but it was reckless in the extreme to pursue this approach so vigorously when our offshore wind generation was non-existent, when power plants were ageing and being wound down and when there were clear warnings about the increasing tightness between demand and supply. In truth, the State and the Government could have brought forward this legislation 12 months ago, but it did not. It was conscious Government choices that contributed to the current situation.

Another contributory factor to this current situation was the Government’s failure to develop our offshore wind over the past decade. Along with others, I was in Scotland recently, visiting the Moray East offshore wind farm and I witnessed at first hand how far ahead of us they are, specifically due to choices they made in recent years. The Fine Gael Administrations that we have had here over the past decade wasted a huge opportunity to exploit our massive offshore wind potential over this time. It was a lack of vision, whether it was for offshore, onshore or solar. It was a lack of vision and a lack of foresight. To put it simply, they failed the people of Ireland. As a result, we are still hugely reliant on imported energy and are now required, in a climate emergency, to continue to build more fossil fuel infrastructure to help meet our basic electricity demands. If we had developed just a fraction of our offshore wind potential by now or if we had expanded our onshore or solar generation, we would not need to procure this new capacity at this scale and in this way with expensive diesel generators. Instead, we could have relied on existing infrastructure or less demand.

Will the Minister of State, Deputy Ossian Smyth, outline for how long these generators will be in place? We are aware that these generators will be in place until 2027 but perhaps a Minister of State will outline the process for decommissioning them or for moving them on. This issue was raised at a previous stage but during their operation, who exactly will own the generators when they are operating and afterwards? How will that structure work? This question had been raised, in fairness, from the Government and from the Opposition at various Stages of the passage of the recent EirGrid, Electricity and Turf (Amendment) Bill. This issue still needs to be addressed. Will the Minister of State outline how these facilities and generators will be procured, what will be the ownership structure for them, how will they be sold on and what will be the terms of that? There is a real concern that we will roll forward a number of years to 2027 and having spent €350 million, which is a huge amount of taxpayers' money, they would be sold off for a song or that some private entity will reap the huge rewards of that. What protections are there for the taxpayers' €350 million?

During the debate on the EirGrid, Electricity and Turf (Amendment) Bill, a question arose about the charge that would be added to ordinary household electricity bills to help to cover the €350 million cost. The Minister did not have a specific figure at that time. Will the Minister of State confirm how much this procurement process will add to ordinary people's bills to cover the cost of the 450 MW? A figure of €40 was speculated on but is that figure confirmed? It is clear now that it is not €200 million and that it will be €350 million.

In the last minute I have to speak I will touch on some of the amendments that Sinn Féin has submitted. We will have even less time to discuss those later on. The first is a concern that is shared by many others and it came up at the very short briefing we had with the Department on this. It concerns the text "or at alternative appropriate sites". I believe that this is far too vague. I question whether it is consistent with the provisions of the directive. It certainly leaves it very loose.

We also have an important amendment, and I hope the Minister of State will support it, to require a report to be laid before both Houses of the Oireachtas following a post-enactment review. This is unprecedented legislation. It gives huge powers and sidesteps significant protections for communities. It should not be done lightly. There should be a review and it should be laid before the Houses.

5:32 pm

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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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?

5:52 pm

Photo of Brian LeddinBrian Leddin (Limerick City, Green Party)
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The Joint Committee on Environment and Climate Action decided to waive pre-legislative scrutiny for this Bill. It was appropriate to do so. It was certainly not a unanimous decision but given that it is emergency legislation, when we were asked, I think that was the right thing to do. However, I must agree with Deputy Bacik that the committee should not have been in the position where it was asked at the eleventh hour to make this decision. We need to be more strategic about taking these decisions. That said, I recognise that these things often arise very urgently and sometimes there is no choice but to make that request.

Generation capacity is critically important. We do not want to be building fossil fuel infrastructure. It will make achieving our climate targets harder. We are trying to reduce our emissions in energy generation by 75% based on 2018 levels by 2030. However, I recognise that this is capacity generation, that is, generation for situations when we do not have the renewables. It will actually help us build out the renewable generation portfolio that is in the pipeline, whether wind or solar. I note that 65% of our electricity comes from wind. That will not always be the case. In future, we may have a situation where 80% or 90% comes from wind but the following day there may not be the renewables there and we will have to rely on fossil fuel generation.

I welcome that there is a sunset clause and that the legislation winds up in 2026. By then, we will have had a few years of developing renewables and we should have got to the point where we are largely a renewable-electricity driven economy. The huge opportunity that this State has, as others have mentioned, is in offshore wind. Members across the House have alluded to the lost decade. I would argue that it is a lost 15 years. The Arklow Bank project dates back to 2004. We were one of the first in the world to develop offshore wind, and then we stopped abruptly and decided that it was too difficult and that gas and oil were too cheap. As a State, we took our foot off the pedal. Now we are in a situation where we are trying to develop offshore again and unfortunately it is much later than we would have liked. I believe we will become world leaders in time, albeit that we are coming from behind. We are going to catch up with Scotland. It is well ahead of us, ten years ahead. Deputy O'Rourke, myself and others on the committee visited the very impressive Moray East farm off the coast of Aberdeen.

I am out of time so I will wrap up there. I do think that we will be world leaders. I welcome the Bill but I do not think that we should have been in this situation.

Photo of Patricia RyanPatricia Ryan (Kildare South, Sinn Fein)
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This is emergency legislation to fast-track the delivery of 450 MW of emergency back-up electricity generation. The Bill seeks to bypass some of the usual elements of the planning system, in particular parts of the environmental impact assessment. While Sinn Féin recognises the need to act to prevent blackouts and brownouts we have been vocal in criticising the rushed nature of this legislation. It should have gone through pre-legislative scrutiny. It is not acceptable to ignore environmental concerns when it suits the Government. We will submit amendments to ensure the process is reviewed after its conclusion and to recognise the impact of data centres on the energy crisis. There are huge environmental concerns around data centres, not only in the context of their energy hunger but also their water hunger, which is so great that water from the Shannon is being diverted to the Dublin area at great cost to the taxpayer. Data centres must pay their way and pay for the damage they do to the environment.

We are here today because of the Government's lack of planning. There is need for emergency back-up generation to avoid blackouts. We need an end to talk of penalising workers and families for energy usage at peak times. They are suffering enough. They need help and not hassle. We need to address that as soon as possible.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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I thank the Deputy. She made good time.

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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I welcome the opportunity to discuss this matter. Like my colleagues, however, I have concerns about the amount of time allocated for the debate and the process that has been followed. Unfortunately, it seems to be the go-to solution for this Government that whenever anything difficult or controversial or there are things it wants to do quickly that it undermines good governance by seeking to bypass pre-legislative scrutiny. The information given to the joint committees are given literally before meetings are held; there is not sufficient discussion and the guillotine is used in the debate. While I understand that that is required in some instances, it seems to be used consistently by the Government, particularly around issues of energy. This is the second time that we have debated an emergency electricity Bill this year. The first time was the EirGrid, Electricity and Turf (Amendment) Bill in June. Why was it that this Bill and its amendments were not included then? Because this Bill is to implement many of the emergency measures that were introduced in June-July. Whether it was the Department, the Government, the CRU or EirGrid was the key driver behind the initial Bill, how was there not the foresight in June to incorporate these provisions? That really concerns me if we are expecting the same entities to plan our electricity and energy grid into the future for the next ten, 20 or 30 years if they cannot even think three or four months ahead.

The Minister of State’s speech was peppered with words like “emergency”, “extraordinary”, “unprecedented”. That is done to create the illusion that there was no option here. That is not only for us in this Chamber but also because the Government will have to go to Europe and convince it that there is an exceptional reason why this Government wants to exempt itself from undertaking environmental assessments that are due on a development such as this.

The Bill will exempt the need to undertake those environmental assessments. I have some specifical concerns about the Bill. First, I do not believe that it should reference Ukraine. The Minister for Environment, Climate and Communications has been very clear throughout the last year that there are two very separate issues at play when it comes to Ireland’s energy: security, which is a planning issue, and pricing which has been impacted by Ukraine. Those two issues have been very separately discussed by the Minister and he has been at pains to separate them. Yet, when it comes to this emergency Bill, we see that Ukraine is included in the Long Title. I wonder if that is an attempt to convince Europe that this measure and this exemption are necessary.

It is the case that member states can exempt specific projects from Article 2(4), which means that we will not need an environmental impact assessment under the Planning Acts. I want to raise a couple of things on that. Exceptional case is interpreted very narrowly by Europe. It can include issues of energy security but it must be where it is impracticable or impossible to achieve the purposes of the project that the state is trying to exempt. Again, I question whether this Bill has been left until the eleventh hour because the Government wants to use this clause. The Government could have brought it forward earlier in the year. It could have got through the proper environmental assessment at that point. I do wonder whether this was a purposeful omission.

I wonder whether the Government is trying to get around environmental scrutiny.

I have a concern in respect of which I have tabled an amendment. The provision is very open-ended. The Minister of State said the measure is for 450 MW of generation. He referred to two sites but then said "and other sites". That essentially a gives carte blancheto the Government to generate wherever it wants without applying the environmental provisions of the planning Act. This gives a huge amount of power. I question whether it is really within the realm of Article 2(4), which entails exempting specific projects on a case-by-case basis and which is not even project wide in scope. The Minister of State will therefore have a great deal of difficulty explaining to Europe the need to have such an open-ended provision. That is why I have tabled my amendment. I hope the Minister of State will take it on board. Saying we have an emergency and that if the two sites for potential generation do not work out, the measure can be applied to any other site is not acceptable. I do not believe Europe would view that as acceptable and I do not believe it would fall within the provisions of Article 2(4).

There are some issues with this. I agree with my colleague that the Government has put people in opposition in a very difficult position in this regard. None of us wants to see blackouts or brownouts. However, because of the Government’s failure to plan, take control and drive an energy system that is secure, we are expected to support provisions that we could never agree to in normal circumstances. The Minister of State said in his speech that the factors affecting the security of electricity supply in Ireland are our geographical location, low levels of interconnection, fossil fuel dependency and the small scale of the market. He also stated the shortfall was identified in September 2021 in EirGrid's All-Island Generation Capacity Statement. These are not the reasons we have a security-of-supply issue in Ireland. The reason we have risk when it comes to security of supply is that the Government has not implemented what needs to be implemented or delivered a secure grid. My point concerns not only the current Government but also previous ones because EirGrid has been ringing the alarm bell on this since 2017. It is not a new phenomenon; it has been highlighted year in, year out since 2017. Not only has implementation not happened and not only has the grid has not been made secure but there have been no curbs on demand. The Government has allowed exponential growth in electricity demand, primarily through the development of large data centres. At no stage did the Government think that since our grid is weak, we cannot meet the demand and need to start curbing it. That is why we are in the situation we are in. We are not here because of Ukraine or because Ireland is a small country with a small electricity market; we are here because the CRU, EirGrid and the Government have not between them managed to develop and maintain a proper, functioning electricity grid worthy of a developed country. Owing to that, communities and businesses are facing potential blackouts and the Government's rushing through of emergency legislation is doing us enormous damage internationally. The Government needs to be cognisant of that and ensure every effort is made to ensure our grid and supply will be reliable and that our lights will be kept on this winter and in future winters.

6:02 pm

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
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I welcome this legislation. It is imperative that we secure energy supplies in Ireland this winter and beyond. We all want to see Ireland transition to renewables. It cannot happen quickly enough but it takes time to build the infrastructure we so desperately want to see, be it on land or offshore in the form of the wind-generating facilities.

I want to speak for a moment about Moneypoint power-generating station in County Clare, a coal-burning facility. In an ideal world, it would have transitioned. It is in the process of doing so, however, because we are preparing for it to become a hydrogen-processing point using wind energy generated off the wild Atlantic coast. While we have plants like Moneypoint, it is essential that we fire them up to generate electricity so we will not have blackouts and the energy crisis we all fear this winter and beyond.

I met stakeholders from the offshore wind sector last week. They tell me that, at present, approximately €78 billion worth of offshore projects are planned for Ireland. We need to make it possible for these to become real-time projects. The stakeholders fear that other European countries have more streamlined regulation that will allow projects to be delivered quicker. Admittedly, we have the Maritime Area Planning Act, which was passed in both Houses and signed by the President just before Christmas last year, but that in itself is just one aspect of what is required. Much more needs to happen. I want us to have energy security. In this regard, the Bill under discussion is essential. I hope it will pass rapidly through the Houses.

My final point is one that I have mentioned twice today. We had a really good budget a few weeks ago that has brought some stability to households and businesses. However, one of my big fears at the moment concerns the fact that six areas in Ireland are having their commercial rates bases revalued. These include County Clare, Dún Laoghaire-Rathdown, Mayo and Donegal. They are facing a 33% increase in their commercial rates. That this is coming in a winter on top of extortionate heating and electricity costs is too much. Those affected are now facing an existential crisis. We had very good measures in the budget to protect and support them but if commercial rates are to go up, we are taking away from them yet again. There are legal provisions for deferring a rate revaluation. We saw it happen in 2020 in the depths of the Covid pandemic. The last rates valuation happened in Clare in 1862, or 160 years ago. If we were able to kick the matter 160 years down the road then, we could surely decide that October 2022 is not the time to burden struggling businesses and kick it further down the road.

This is good legislation. I hope it will pass quickly. Moneypoint is central to all this. There will come a time when we have more offshore capacity but we are not there just yet.

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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The weekend before last, there were blackouts right across Cork city. We still do not know the reason. It was a real wake-up call for people in Cork to realise the Government has failed to secure energy despite warnings. People are concerned. Rushing this Bill through the Dáil is fooling no one. Once again, the Government, having ignored the warnings, is now trying to react at the last minute. This should have been planned over the summer. My colleague, Deputy O'Rourke, has been raising concerns about the rushed nature of the Bill. He is right. We need a Government that plans and does not leave everything to the last minute.

The Taoiseach said a number of weeks ago that prepay customers would not be cut off. Now, weeks later, over 400,000 people are waiting for clarity from the Government as to how they will be protected. It is not right for the Taoiseach and other members of the Government to make statements and then not deliver. The onus is therefore on the Government. A statement needs to be made to all the prepay customers. Thankfully, the weather has been good so far but people are worried about the winter. They fear their heating bills, and that needs to be sorted out now.

6:12 pm

Photo of Bríd SmithBríd Smith (Dublin South Central, People Before Profit Alliance)
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Much has been said about this issue, not because we have had plenty of time to discuss the Bill, but because we have been kicking back and saying we are not willing to forgo pre-legislative scrutiny and that we do not have enough time to discuss the detail of the Bill. This is setting a very bad precedent, in particular for the Green Party. At the first sign of the crisis, the Government essentially abandoned the mini safeguards relating to planning and development, and even climate action measures that are already on the Statute Book. This Bill sets aside the environmental impact assessment and several directives in order to fast-track these developments to facilitate gas-fired generators to be ready for next winter because we are told we will face great threats to our power supply if we do not move fast. Every reason under the sun is given for that potential outcome - from Ukraine, to "We failed to generate enough offshore wind", to "There are a lot more people coming on the grid", and so on, but the very obvious one is being ignored. We will park the obvious question, because it is a longer debate, as to how this wonderful market system for the supply of electricity was to usher in a new and great era of competitive energy and leave us all slán abhaile with energy at low prices. The neoliberal model that was introduced in the early 2000s utterly failed. Not only are people faced with massive bills, but they are also now being told - we just heard the evidence of the Deputy from Cork, that we may be facing blackouts unless we ignore all the environmental and climate legislation that has been put in place heretofore.

It is a tall order for the Minister of State, Deputy Ossian Smyth, to ask Deputies to pass this Bill. People Before Profit will not support it. We will vote against it. One of the reasons we are doing that is because what I really hate more than anything else is the idea that the Minister of State thinks that we are stupid, that we are eejits, that we would swallow the diatribe about Ukraine and the shortage of supply for the reality, which is that data centres are gobbling up something like 15% to 17% of the power from our national grid. It is an outrageous scandal that we are a total outlier not just in Europe but on the planet in terms of how we deal with the national grid and the facilitation of data centres. We are putting that aside because we are told that this is most important to our economy. Without the multinationals, we would all drop down dead. If they did not have their data centres, the multinationals would flee the country. This big hammer is held over political opposition and over the people of Ireland as if there is no alternative in this world but to facilitate Google, Microsoft and LinkedIn - all of the giant multinationals whose head offices are based here because they get access to a low tax regime. Now we are facilitating them to the hilt, with whatever amount of data centres they want.

I was not in the Chamber when the Minister of State made his contribution, but I was listening. He stated that we discovered somehow in 2021 that we were going to run into trouble in the winter of 2023 and so now in 2022 we have to pass this emergency legislation. I will tell the Minister of State what I think happened. I think in 2021 we discovered that there was going to be a problem and the Minister, Deputy Eamon Ryan, and the Minister of State sat down and did what they always do. The Minister always says that what needs to be done is this, this and this. They went to the top civil servants and they went blah, blah, blah like Greta Thunberg expressed many times about COP. I have seen it in action in the climate committee. The amount of blah, blah, blah when it comes to dealing with reality is astonishing. They blah, blah, blahed the Ministers to death and they got to 2022 and they realised that, Jesus Christ, we now have eight mega data centres to be connected to the grid, which already have planning permission, that were not part of the moratorium that we insisted on and that they are going to gobble up 1.5 GW of energy, never mind the 450 MW the Government is buying in. This has all been documented in replies to parliamentary questions we asked and in evidence which we have got back. Despite what we are being told at those committees, that Ireland is not an outlier and growth of 9% in demand for energy is not unusual, even the CRU came back to us and told it is unusual. It said that no other country in Europe has had growth of 9% in energy demand in the past five years. That is what we have had, and it is due to the growth in the number of data centres. All of the other big economies in Europe – all 26 of them or whatever the number is; I always get mixed up with the number – have had zero growth in energy demand, in particular when we include the two years of the Covid crisis. We are an outlier for reasons, and now we are passing legislation that flies in the face of environmental and climate concerns in order to facilitate giant multinationals at an obscene level. It is not just about energy; it is also about water.

It is unusual. In fact, it is most extraordinary to see that this is being done under the guidance of the Green Party, who got into power saying they were going to be the saviours of the environment and they would drive a green agenda. The Green Party got its carbon legislation passed, but now it is unwinding it bit by bit in order to facilitate the economic powers that drive decisions in this country. We are tearing up the Planning and Development Act because we want to introduce a clause that will lift the constraints that may be imposed on data centres.

We will table amendments to the Bill. I have no doubt they will probably be rejected by Minister. If they are not rejected, there are other elements in this House that will vote against them. I am telling the Minister of State that this is a charade. It is a charade mainly because the Government is treating us like we are thicks, as if we do not see the reality of what is coming down the tracks. It is nothing to do with the war in Ukraine. We do not get our gas supply from Russia. We get our gas from Norway, from the North Sea across the interconnector from Moffat, and from Corrib. We are not under threat of gas shortage because of the reasons the Minister of State gave in his speech or that are continually spewed out to us, with passion, from Ministers and, in particular, from the Minister for the Environment, Climate and Communications.

This is not good enough. Despite all of the arguments we have made and all of the attempts by ourselves and others to pass Bills and motions to ban the proliferation of data centres in this country, we are continuing with the same old policy. Members can mark the words of those who predicted it, the scientists and even the data centre industry itself. The year 2030 is a big cut-off date for what is going to happen in terms of climate mitigation. We will have 1 million electric cars by 2030, and a reduction in emissions by 35% to 40%. We will cut the herd by 2030. Everything is mañana. It is for the next Government or the next part of the climate plan. It is kicked down the road and kicked for touch, but by 2030 if we keep going down this road data centres will be consuming not 15%, not 17% of our national grid, but 30%. The Government will have to fool the people and say: "Oh Janey Mac, we need more back-up generation." We are going to have to change the laws again and again. We are going to have to ignore environmental impact statements and our climate targets. We are going to have to go back on everything we said and continue our reliance on fossil fuels, not because we are not good enough at renewables, people are not playing their part or because a carbon tax has been imposed on them but because the Government is craven and bowing down, it cannot do enough for the multinational corporations that is it rolling out the red carpet for, who really do not give a damn and who are not playing their part because they are not paying the proper taxes in this country. The Government will do anything; it will bend over backwards to facilitate them in this pitiful little republic. No other country in the world does it, but we manage to do it. Albeit that we intend to attempt to amend the Bill, we are totally opposed to its passing.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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The situation that we face this winter has the potential to be severe. Regrettably, there is a need for urgent action, including additional generation of power. For that reason, we do not oppose the legislation, but we have some concerns about the manner in which it is being processed. I accept that it is frustrating when we see the situation, we are in. It is due to Government policy in recent years.

We are here because of a failure of the Government to plan to ensure we would have adequate capacity. I attended a briefing this morning given by Wind Energy Ireland relating to the potential of wind energy independence for Ireland and zero carbon electricity generation by 2035. It was very positive stuff but it seems, although I hope it is not, far removed from this winter and the current situation we are in. Think of the position we could be in now had more been done over the past ten years in terms of the national grid and how we generate energy.

If we are to grasp the benefits of what is coming down the tracks, we need to ensure the grid is there to match it. Both EirGrid and the CRU and any organisation that is connected to this need to lift their game to ensure, first, in the here and now this winter, that we will have adequate capacity, that the lights will stay on and that the most vulnerable will not end up facing hardship by way of dark, cold and all the rest of it. Moreover, we need to ensure we will seize that opportunity for energy independence, reduced emissions and significant employment.

6:22 pm

Photo of Cathal BerryCathal Berry (Kildare South, Independent)
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I am sharing time with Deputy Shanahan. I thank the Minister of State for his opening statement. I welcome the opportunity to contribute to the debate on the Bill. I share the concerns that have been articulated and echo them. This is not the way to do business and I think both the Minister of State and the Minister will appreciate that. There is little time for debate or scrutiny when a Bill is due to be guillotined. We are being asked to set aside important planning legislation and environmental assessments. It reeks of a certain degree of chaos on the Government benches. This is not the way to do business in government. The State should be run in a smooth and composed fashion but I do not see this judging by the activities this evening.

That said, I recognise the context of the war in Ukraine, and while it is not directly linked to what is going on in this country, there is an issue relating to energy security and gas supplies. We have gas-fired energy plants here and it is important we have an alternative source available for backup if required. There is also a mismatch between supply and demand in regard to energy. I appreciate that context and recognise the fact these two generators, with an additional 400 MW, are for backup only and will be used only from a backup perspective, or so we are told.

In my brief remaining time, I will ask a few questions and the Minister or the Minister of State might be kind enough to address them in their closing remarks, for which I will yield some of my time. There was mention of diesel fuel being used. Is that the fuel that will be used to fire these two generators?

A cost of €350 million was floated. Is that an accurate ballpark figure? Who is going to pay the €350 million if it is indeed the cost? Is it going to come directly from the State or will a levy be put on electricity bills throughout the country? Tarbert and Shannonbridge were mentioned specifically. It is ironic we only recently shut Shannonbridge and now it looks as though, like Lazarus, it will be brought back to life. Looking at it from a positive perspective, does either the Minister or the Minister of State have any idea as to whether additional employment will be brought to Shannonbridge, and Tarbert in particular, because of this?

Most important, what is the Minister's assessment of whether this will actually work and plug the gap, or whether we will be back here this time next year trying to ram through more emergency legislation?

I recognise the imperfections of the Bill and of this process. However, being a responsible member of the Opposition, I want to keep the lights on and, on that basis, I will not oppose the Bill. Nevertheless, I will look in great detail at the amendments with a view to strengthening the legislation and take it from there.

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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Exceptional times require exceptional measures, and there is no doubt we are living through exceptional times. As for exceptional measures, it looks as though the Dáil has to afford exceptional powers to the Minister, given the Bill seeks to disapply the Planning and Development Act. This is necessary safeguarding legislation to protect against unwarranted development and citizens' rights being trampled on by planning developments. It is being proposed to reflect the significant concerns relating to energy supply and, in the main, seeks to facilitate the development of electricity-generating capacity through new generator deployment at Tarbert and Shannonbridge power stations.

We in the Regional Group recently tabled a motion requesting the repurposing of Shannonbridge as a generating station but using a different fuel supply. We brought forward a thesis whereby it could be fuelled by biomass, which would be redirected from the forestry export market, where it is sold at present for little money. This could have been used as an inward feedstock to develop indigenous electricity generation, but it is obvious the Government has other thoughts on the subject. It would have benefited both the security of supply and two indigenous, domestic sectoral industries, and I would hazard a guess it would also generate additional employment. It appears the Government has other ideas, and what has been proposed by the Bill, it appears, is now the outcome, namely, the purchase of additional large generator capacity to be deployed.

The Bill the Government is proposing also speaks to the capacity of legislation to consider other site generation outside of these two capacity sites where the planning Act and the safeguards could, again, be disapplied. I am concerned, like other colleagues who have spoken, about that type of power and I believe that if such actions are being considered, they should be brought back before the Dáil for approval.

Much has been made of the electricity supply concerns we face because of the Ukraine war and the effects that is having on supply pricing due to Russia's actions in turning off the supply of gas to the European market. It is true Europe has become far too dependent over many decades on Russian gas and this was flagged, but onward we went on our merry way.

We can acknowledge now that we are facing significant supply constraints and spiralling price inflation, but we might also look to our own actions relating to generating electricity capacity and distributive solutions over the years. Despite much talk of offshore wind potential and wind energy generation, we are still awaiting the formation of the maritime area regulatory authority, MARA, to assist in offshore wind licensing approvals. This regulatory regime is needed to provide assurances to financial investment, primarily in future offshore wind development, and we are way behind where we said we would be with the development of this institution.

In addition, opportunities to develop solar farm energy have been left in limbo up to now. There are no specific regulations concerning them and no safeguards for those wishing to invest in the area, and there is a lot of difficulty arising from planning constraints. We spoke about many farm sheds that have been identified for years and that, with the support of grant aid, could now generate solar electricity. Instead, the Government has sat on its hands, having been repeatedly asked to provide funding to this area, while the funding and farm grants for this ran out almost two years ago without being properly replaced. It was only in recent weeks the Minister for Housing, Local Government and Heritage made solar arrays on roofs free of planning constraints, but accessing funding remains a key difficulty.

We have heard much public discussion regarding the possibilities of anaerobic digestion and the production of biogas. These eminently proven technologies have been implemented as part of energy mixes throughout the Continent for a number of years, yet we - the Government - remain agnostic to supporting these technologies. We also continue to turn our back on any consideration of liquefied natural gas, of using the potential of the Kinsale gas line to import it from associated shipping or of examining the technology of sequestering gas within the existing closed wells. Again, these technologies are being deployed elsewhere but, for some reason, our climate agenda cannot extend itself to them. It seems we will not burn fossil fuels under any domestic technology development or enhancement, but we have no difficulty in buying generator capacity that will have to run on fossil fuels to provide the 450 MW of added energy security the Bill will entail.

I expect this Bill to pass largely because the country has no choice. We cannot risk electricity brownouts or blackouts and all the difficulties that will bring to our population, industry and economy. I have significant concerns regarding the trajectory of energy policy in this country, which encourages additional data centre development while at the same time taking knee-jerk reactions to offset the lack of action that Government could have and still can take to expedite additional indigenous electricity generation. Like other colleagues, I will not oppose this legislation. However, I believe we need to be doing, and can do, much more in terms of indigenous electrical generation. I hope to see the Minister maybe becoming more activated to that extent.

6:32 pm

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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I am glad the Minister, Deputy Ryan, is here. I will read from a small bit from the speech delivered by the Minister of State, Deputy Smyth. First, he told the Dáil he would discuss the generation capacity shortfall that exists. Welcome to the real world. Second, he said, "I will reaffirm the urgency of this Bill in order to enable delivery of emergency capacity to maintain a secure electricity supply for customers". My goodness, what a mouthful. Wakey, wakey. Is this Alice in Wonderland? Did the Minister finally wake up? My goodness.

We were told by EirGrid two years ago that there were going to be power cuts. Then, the Minister went on with his folly of closing down Lanesborough and many other peat stations. That caused havoc in the midlands. The Minister talks about just transition. It was the most unjust transition I ever heard of in my life. We are now spending money as if it were snuff at a wake. We are spending hundreds of millions to buy aircraft engines to run emergency generators. Did you ever in all your days hear the like of it? I know people who bought generators a long time ago because they knew where the Minister was going by bringing them down a cul-de-sac. Householders and businesspeople went to a lot of expense. In fact, a person could not get a generator now if he or she wanted it. The Minister is going to do this now but what is he going to run them on? Will he run them on air or petrol? What about altar boys' wine? The Minister is going to run them on fossil fuels. Imagine that: the fossil fuels he has such hatred towards. The sooner the Minister is removed from this position, the better. The people will have their say. The Taoiseach and Tánaiste will not say anything because they have cobbled up the Government. The people will ultimately have their say, however, and I hope it will not be too long.

I will ask the Minister again. I have already asked him twice. We metMag Mell Energy today in the audiovisual room, which gave a briefing for anybody who wanted to come. Did any of the Minister's party come? Not at all. They knew their questions would be answered by experts who knew the facts. They did not have to refer to a notebook or mobile telephone to look at this and tell the Minister the folly.

The Kinsale gas pipeline is lying empty in perfect condition off the Acting Chairman's county. The proposal under the closing down of the pipeline involves a situation where concrete must be poured into the pipe to render it useless. I want the Minister to answer this question. Is he going to go ahead with that act of vandalism, State terrorism and national sabotage? Is he going to allow that to happen? I want him to answer that tonight above anything else. Will he please answer that? Will he get ready-mix concrete and pour it into that pipeline? He could not possibly do this because if he did, the men in white coats would be here.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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The Minister does not want turf or gas. God only knows what he wants. The Government Deputies themselves certainly do not know. Every day since the Government closed down Bord na Móna, the cost of electricity has gone up. The Government has sabotaged the country. It has left the people not sure whether they will have electricity despite the savage bills they are paying. Old women are afraid to boil the kettle at present because they are afraid they will cause a strain on the electricity grid.

Like Deputy Mattie McGrath said, the Government is thinking about pouring concrete into the pipeline at Kinsale. We will need gas for many years. The wind does not blow all the time. No matter how many more turbines are put up, the wind does not blow all the time. We will need gas into the medium to long-term future because the Government will not even keep the turf generation stations it closed down. The Minister talks about just transition. There was no just transition. The Minister closed those stations down the minute he got power.

It was a sad day for the people of the country when the Minister became part of the Government. I have no bother in the world in telling him this because he has blackguarded the people with the way he is carrying on, charging them any amount for electricity and talking about coming back with a windfall tax. Where is the regulator? Why does it not control what companies are charging? Now, we hear the Minister is going to bring jet engines, something he knows an awful lot about, of course. They are not going to be running on fossil fuels at all but aviation fuel. What are the emissions going to be out of that?

Does the Minister realise that, back in the 1930s or 1920s, the one ambition of Éamon de Valera and the first Taoiseach was to be self-sufficient. Where are we now? We have our fingers stuck inside every other fellow's mouth all over the world. Even as late as last year, we were buying coal from Putin to keep Moneypoint power station going and the Government thought people would not find out. That is what they are doing, however. The Government has no respect or regard for the people it is representing.

Photo of Richard O'DonoghueRichard O'Donoghue (Limerick County, Independent)
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I was horrified to read that if Ireland had any difficulty with the pipeline off Moffat in Scotland, our gas would be gone within 20 minutes. Did the Minister hear that? If there was any problem with that pipeline, our gas would be gone within 20 minutes. If our gas was reduced by as little as 20%, and if the wind did not blow on the same day, we would have to switch our electricity to diesel, which would mean we would only have enough fuel in the country to run the generators and no fuel to run our transport network. Did the Minister hear that? There would be no fuel to run the transport network if there is an issue with the pipeline.

Some 60% of our rural homes are run on a fossil fuel known as kerosene or, as people call it, home heating oil. They have no alternatives at present. Twelve months ago, kerosene was 70 cent per litre. Now, it is €1.40 or €1.50. A woman told me today her family is not turning on the heating at the moment. Her family is coming home for Christmas and they are saving the oil so they will have the house warm for their family and their grandchildren. It is not even November yet and this is what they are doing.

What has the Minister done during his term? He closed down Bord na Móna and our peat plants. Now, we are going to pour concrete into the pipeline off Kinsale to make sure we have no alternatives in this country. The Minister said, "I will tell you what I am going to do. I am going to buy jet engines to run the electricity power in this country." If those jet engines run on gas, we would have enough to keep this country going for 12 months from the gas that is coming out of the Minister's mouth. He is an absolute disgrace and so out of touch.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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The proposals here today are quite shocking, to be quite honest with the Minister. As far as I can see, some of these generators are going to be run on fossil fuels, apparently railroading all planning guidelines, waiving pre-legislative scrutiny and guillotining the debate. These are the most important values in any democracy. We must give the people the right to speak.

The opportunities this country has are phenomenal. We are surrounded by sea and wind. We have fabulous opportunities with the floating LNG terminal off County Cork. That strong possibility was put before the Minister. Obviously, loads of proposals are put before him. Representatives from a company called Mag Mell Energy gave a briefing in the audiovisual room today and more or less talked about the same thing, that is, a floating LNG terminal. Certain Members had the honesty to come in, which I appreciate, but not one of them would not agree with the experts. The experts were able to take their questions apart quite clearly even though most of them were asking questions they got from telephones or whatever. Still, however, I appreciated that they did come in because we need to have a very strong debate going forward.

We are totally dependent on the UK for gas in this country and even fracked gas, if we are being honest about it.

Of course, that will not be said. We could have our own clean liquified natural gas, LNG, here. The Minister has refused continually to make moves on that. Instead he has some kind of wild idea of bringing in generators run on fossil fuels.

We have had little opportunity down through the years to invest in the future. I was in Northern Ireland recently and saw so many farms with solar panels on their roofs. It is quite a success in the UK. Why have we not gone down that road ourselves? Unfortunately, we left ourselves running behind. There is talk now that the Government is going to pour ready-mix into the pipes in Kinsale. That is an astonishing situation we find ourselves in. If that is the case it will be an absolute disaster for this country, continuing on from many more disasters.

The Government has not looked at the data centres. There is a possibility there. As Deputy O'Donoghue said, with Moffat in Scotland, all it takes is one thing to go wrong there and it will cease this country's operation. We can look at Barryroe, and we have to look at these things going forward because we are importing everything. We are quite happy, and there are a lot of Deputies shouting and roaring in this Chamber while knowing this is going on, but they are not willing to open their mouth about it. When we decide to see if we can source our own little bit of fuel to make sure we are energy independent, there was not a word about it. What we will now have is a load of generators set up all over the place and run on diesel engines. The man who mentioned the white coats was talking right here in the Dáil a while ago.

6:42 pm

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent)
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The challenge for Ireland's energy security is in the present, not the future. That is where we find ourselves this evening. I agree with what was said at the beginning of this debate. We need short-term, immediate measures to help guarantee energy security. The Minister is proposing one of those measures here this evening. That is to exempt the provision of emergency generation of 450 MW of electricity from the provisions of the Planning and Development Act 2000 for designated developments and to exempt it from the environmental impact assessment, EIA, directive which covers assessments of the effects of these developments on the environment and on the development of habitats. In place of these provisions we are being asked to substitute ministerial approval.

The habitats and EIA directives were the source of much of my work in the European Parliament and I never expected to be voting for legislation that would disapply the requirements of these directives. In politics, I suppose, nothing should surprise us. In that context, has the Minister already communicated his intentions to the Commission and has there been any response? I am pleased the Minister is dealing with this matter with the necessary haste. Of course it can legitimately be said that such emergency legislation would not be needed if Government policy over the past decade had ensured sufficient energy supply be generated for our own needs, particularly in the context of the number of data centres that were given planning without ensuring they could supply their own energy needs. That is a most legitimate criticism. Equally, nobody could have predicted Putin's invasion of Ukraine and the cutting off of Russian gas supply to Europe. Russia supplies 40% of the gas to Europe. What we are seeing is Ireland's inadequate future planning for energy security and supply since 2000 being compounded by a poor EU decision some time back to rely on Russian gas. Another factor is the illegal invasion of Ukraine and the destruction of its energy infrastructure.

In any emergency legislation it is important that certain checks and balances are introduced. While I have tabled no amendments myself, I believe the Labour Party amendment would go a long way towards achieving them and I ask the Minister to consider accepting it. The Bill designates two locations, Shannonbridge and Tarbert. Given that the Minister has the power to designate other locations, has he any earmarked or does he consider that this will not be necessary?

I support this legislation because it is essential. None of us here wants to do anything that might contribute to blackouts. However, I also want to say that because we are in the middle of this energy supply emergency, now is the time not just to put this emergency legislation in place but also to take emergency steps to help provide a more secure supply of energy in the short, medium and long term. We have heard of the potential for offshore floating LNG terminals but the problem is there are only 37 of these floating terminals in the world. How feasible and doable is it that we could manage one of those in the short term? One Deputy after another has listed all the different actions we can take, but in the few seconds I have left I want to impress on the Minister the potential for anaerobic digestion and the production of biogas to help supply some of our energy needs. I am asking the Minister why we are not pursuing the generation of electricity using anaerobic digesters. It is small scale but would be ideally suited to generation at a co-operative level. It is a win-win for the farmer and the environment. I support the legislation but it is not sufficient to deal with our energy security needs. I want to see the same commitment, speed and level of determination to ensure alternative supplies of energy.

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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I welcome the opportunity to speak on this. I remember the song "Leaving on a Jet Plane" but now we are going to be using jet engines to try to keep the lights on. We might not agree with everything the Minister is doing but I do not think there is a person in the country who wants to see the lights going out. Any port in a storm, that is what we are left with at the moment. It is ironic though, as was highlighted earlier, that under this emergency legislation the Minister can disapply the habitats directive and EIA regulations with his buddies in Europe. They can do one thing one day but it was different two years ago when Bord na Móna had a court ruling under the same habitats directive. We have raised it with the Minister many times that there is a massive amount of tree bark being exported that could be used for producing electricity in Shannonbridge and Lanesborough, but nothing is possible. Then, when the Government wants to do something itself, everything is possible. That is one thing that I just do not admire about this legislation.

We have to come to reality. We have followed nearly everything Europe has told us down through the years and we have become like the birds in the nest - we do not have anything. We are reliant on the gas and on nearly every single commodity coming in. We are told it might be dirty or it might be this or that. Ironically enough, I am after reading on my phone in the past half hour that Germany is taking down a full farm of wind turbines and opening a coalmine under it. That is fairly unusual for a country that is in the same Europe as we are. We have to face up to realities in times of need and times of war. We will need gas for a long time into the future. We might not like an LNG terminal or putting the gas back down in Kinsale again, but we have to make sure we do that. There are a few things we need for our country. We must keep people warm, keep the lights on and keep food. Those are the most basic necessities for anybody in any country.

There is opportunity being lost as well.

Farmers will move on the solar panels, which will be a huge help. There needs to be a system whereby they will get paid for putting back into the grid. They are well used to getting charged the opposite way.

I understand there is €3 million or €4 million a year in the budget for the next three or four years for anaerobic digestion. The Minister will correct me if I am wrong on this. That would not build even one anaerobic digester because they cost €8 million to €12 million to build. Again, we are relying on the private sector to act. We will have to go through the whole planning process if they are to be located anywhere near a town, as I have seen happen time and again.

I heard the Minister saying the other day that he is going to put pipes through Dublin and heating infrastructure here and there. He would have to be a magician to get pipes into some parts of Dublin, given the number that are there already. I do not know when that will happen. To be frank about it, I think it is a dream.

I cannot understand what is happening with the Derrybrien wind farm. Senator McDowell, who is a former Attorney General, has spoken about this. There are solutions that can be found to ensure it is put back up and running. I have no problem with the Minister putting the jet engine in Shannonbridge but he should have looked at biomass being used in those places. It would be a solution. What we have to do now is bring bits together and have different ways of generating electricity to make sure we do not leave people with the lights out.

I am fully behind the likes of offshore wind down the road but I think the Minister is going ahead of himself. However, I may be wrong. If offshore wind is the solution down the road, that is great. People are talking about hydrogen and one would swear it was around the corner. It is €22 a litre for the hydrogen that is being put into the buses in Dublin at the moment. You would want to be a millionaire to drive a vehicle that runs on hydrogen. That is the price of it. We are going to put in 17 l of it and it is pressure you put it in on because we do have the gear to fill the bus fully. That is the reality. It has to be done at night and it takes a long time. When we consider all the things people are talking about, we need first to analyse what can be done and then how feasible it is. The price of these buses, at €800,000, is twice as dear as an ordinary diesel or electric bus, which costs €400,000. We need a bigger budget if we are going down that road. I am not against it but I am saying you have to dance according to your music or the money you have in your pocket.

6:52 pm

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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Or else you could be out of tune. I invite the Minister to respond to the debate.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I thank Deputies for their contributions. I was not here for the start of the debate, unfortunately, because I had another meeting. I thank the Minister of State, Deputy Ossian Smyth, for opening the debate and I am happy to be here to respond and answer some of the queries that were raised. We will return later this evening for Committee and Remaining Stages.

Deputy Berry and others made the point that we should not be putting through legislation in such a manner whereby we are dealing with all Stages on the same day. We do not want to do so and are doing it for only one reason, which is to keep the lights on next winter. It is next winter we are talking about here. If we do not deliver this legislation and sign the contracts for the delivery of the generators, which I expect EirGrid to do within the week, we will not have the time to put those generators in place. They are needed because our auction system going back to 2019 did not deliver the quantity of power we know we will need. It is a very clear, direct and immediate need. We were not able to get those generators in the auction process for a variety of reasons.

The former Secretary General to the Government, Mr. Dermot McCarthy, is reviewing some of the circumstances around that but, primarily, generators that had been contracted were not able to be delivered. People know that happens in the world today. A significant part of the generation was not able to be developed and delivered within the necessary planning timelines that exist. That is primarily the reason we are engaged in this emergency purchase of generation of 450 MW, having already agreed previously to do 250 MW on a similar procurement basis and in a longer timeframe. That will give us an additional 750 MW. Next winter, on an emergency basis only and if all other power supplies have been fully exhausted, it will give us additional resources to ensure we keep the lights on.

If we were not to pass this legislation, it is clear that applying the existing provisions in the planning system means we would not be able to start construction or deliver the turbines until after next winter. Based on the analysis by EirGrid, next winter is when we will have a particularly tight pinch point. We have one this winter as well. There is no guarantee this winter in the event that certain conventional power plants become unavailable, there is a protracted cold spell or our import capacity from the UK interconnector is not available. In a variety of circumstances, we could be in a tight situation. We are introducing this Bill for the very good reason, and no other reason, that we want to keep power available to our people.

Deputy Harkin, having been involved, as she says, in discussions on the habitats and other directives at the European Parliament, asked a valid question. This is not about disapplying provisions but rather applying some of the provisions that allow for this process to be taken in exceptional circumstances. It is not ignoring European law; it is the exact opposite. It is applying one of the provisions within the directive to allow, as I said, for this planning approach to be taken in exceptional circumstances.

Photo of Michael FitzmauriceMichael Fitzmaurice (Roscommon-Galway, Independent)
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When people living beside Lough Funshinagh were being drowned out of their houses, the Minister could not apply that provision.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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We have to show and prove it is being done in exceptional circumstances.

In further response to Deputy Harkin, right through this process, we have been in communication with the European Commission. We meet in the Energy Council every second week at the moment because of the energy crisis. I first mentioned to the Commissioner earlier this year that we were aware we would have to take these sorts of measures to deliver the power the auction system did not deliver. At every stage in the process, we kept the Commission informed. The officials will meet tomorrow to discuss this. As the Bill sets out in section 7(3), if the legislation is approved by the House and if we apply for the various measures, that is, if we are making a decision under subsections 7(1)(a) or 7(1)(c), then "the Minister shall give notice to the European Commission stating that the designated development is exempt from the provisions of the Environmental Impact Assessment Directive". This is being done under European law.

We need to be clear on the legal context for this. Our system is maintaining the market regulatory systems on which the EU insists. To my mind, it is correct in so insisting. There is a lot of discussion at the moment within the Council and elsewhere as to whether we should give up on all our market regulatory systems and move towards something different. I do not believe we should. The process we are following is set out in that European legal context. It is the Commission for Regulation of Utilities, CRU, that has issued the direction to say we need this power. In response to that, with the assistance of State financing and revenue that will come from the tariff of some €40 per household, EirGrid will contract for the generators with the power generation companies. EirGrid itself is a transmission grid company, not a generator. It cannot go into the generation business. It has discussed and negotiated with all power supply companies here and all potential generators. We are open to all sites, to answer a question put by one of the speakers, and we have come up with two sites, Shannonbridge and Tarbert, which, for technical and other specific reasons, EirGrid sees as the optimal locations for this generation to be developed. At all stages, we have done this in compliance with European law and in full view of the Commission and the other regulatory authorities, as required.

To answer one of Deputy Berry's question, it is distillate, as I understand, that is used on these two sites. The machines can also run on gas. In the future, and I believe they will have a future value after the period of this exceptional measure, the approach of the CRU, EirGrid and the Government is that the generators will be sold back into the market.

I believe "made whole" is the legal term. That will include the potential refunding to the Irish public of some of the money spent on the original purchase. I believe there will be a significant contribution there. All the expert analysis of how we move to a high renewable zero-carbon energy system shows that backup is needed. As Deputy Mattie McGrath said very astutely, sometimes the wind does not blow. In those instances we need backup power supply. As I understand it, the generators also have the capability to be switched to hydrogen fuel supplies, so they are future-proofed. They will not be stranded afterwards, in my mind.

Deputy Berry asked if what we are doing here is enough. The answer is "No". In this emergency process we are trying to close the gap that emerged because of a failed auction back in 2019, which only became apparent after a year and a half or so. In my mind, we will need at least another 1.5 GW of backup gas-fired generation, as well as the additional solar battery storage, offshore and onshore wind, interconnection and other balancing supply, including pump storage and a whole range of other investments. We need a whole variety of investments to be delivered. We will also need additional gas generators. They will come through the T-4 and T-3 auction systems, which are currently progressing. We will have to continually review what those needs are. Indeed, that is what the EirGrid capacity statement does. We will have to respond because we are in a tight situation. We have a lot of older plants that we need to shut down. We have to shut down older fossil fuel plants, such as Tarbert and Moneypoint, which are at the end of their lives. Therefore, we need a significant amount of new generation capacity. That will come through the standardised auction system, and not this emergency procurement process.

I am sure I have not answered many of the questions, but we will be able to come back and discuss the legislation in what I accept is a truncated timeframe. We need this legislation in place. As I said, the contracts will be signed within days. That gives the board and the Minister the capability of actually delivering these measures next autumn. We need them next autumn. It is absolutely appropriate for the Government to act, which is what we did when we realised that there was a shortfall. We have done that in procuring the 250 MW, engaging in this emergency purchase and making sure we can deliver it in time, which this legislation allows us to do.

Question put and declared carried.