Seanad debates

Wednesday, 29 June 2022

Nithe i dtosach suíonna - Commencement Matters

Energy Policy

10:00 am

Photo of Lynn BoylanLynn Boylan (Sinn Fein) | Oireachtas source

I want to raise what appears to be a complete lack of urgency regarding the new demand-side reduction strategy. Even before the war in Ukraine and the pressure this is placing on energy provision, there was a need to address demand-side pressure on our power supply. The previous Government's policy to make Ireland the data centre capital of the world is coming home to roost. Only yesterday, the Dáil debated the rushed legislation to allow for €400 million of temporary gas-powered generation. The Joint Committee on Environment and Climate Action, of which I am a member, did not have an opportunity to do pre-legislative scrutiny on this legislation. Instead we are being asked to fast track approval for the Commission for the Regulation of Utilities, CRU, to facilitate this gas-powered generation in order to keep the lights on over the winter. It seems that there is no such urgency to produce a demand-side response strategy, however. Months ago, the Joint Committee on Environment and Climate Action heard from the Demand Response Association of Ireland how the Department is yet to have a single meeting with stakeholders to even discuss the new strategy. This is unbelievable. The climate action plan has an ambition of 20% to 30% demand flexibility by 2030. Demand-side reduction turns energy users into virtual power plants by allowing users to adjust energy consumption during times of high stress on the grid. Through reducing electricity consumption, it has the same effect as increasing generation but without the need for additional expensive carbon-intensive infrastructure.

Previously seen as an emergency response to prevent blackouts, demand-side reduction in a modern electricity system will actually assist our transition to 80% renewables by 2030. Not only that, it can also help the public to become active participants in the decarbonisation process and to benefit from it. Across the water, the British grid is going to pay households to use less electricity at peak times. Households with smart meters will be able to choose to cut energy use when supplies are high and to financially benefit from doing so by receiving a credit on their bills. As a grid spokesperson said, "demand shifting has the potential to save consumers money, reduce carbon emissions and offer greater flexibility on the system". Opening that demand shifting to households means that it will not just be the big companies that benefit from this. It will also facilitates more flexibility on the grid, which means cheaper power for everybody.

When will the CRU bring forward the new demand-side reduction strategy and will that strategy include households? Big business is what has led to the pressures on the grid, therefore, it should not be the case that only big business benefits from demand-side strategies.

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