Seanad debates

Thursday, 27 October 2022

Development (Emergency Electricity Generation) Bill 2022: Second Stage

 

10:00 am

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank the Senators 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 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 and protect the security of electricity supply in the State because of the exceptional circumstances that have arisen in the market for that supply. Although many Members will be familiar with these issues, it is important to take this opportunity to set out the complex situation in which we find ourselves with regard to the security of electricity supply and wider pressures on the energy sector. I will also describe the sections of the Bill in detail and why it is needed. It is critical that 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 Senators' support to achieve that.

On the factors affecting security of electricity supply, Senators will appreciate that we, in Ireland, face additional pressures due to our geographical location, low levels of interconnection with other countries, fossil fuel dependency and the smaller scale of the Irish market compared with many other European countries. However, the most immediate factor that will affect the 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 the 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 that it has been presented with and 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.

On 7 June 2022, the Commission for Regulation of Utilities, 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 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. 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 that works can commence to provide for emergency generation by winter 2023-24.

The legislation before the House 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. 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. This capacity will remain available until the necessary replacement capacity has been secured. Further to the EirGrid, Electricity and Turf (Amendment) Act 2022, the project will 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 back-up in addition to existing generation capacity in the electricity market.

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. The Bill is, therefore, required urgently in order to ensure that an application can be made and site clearance works commenced as soon as possible, probably this year. 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. The Bill seeks to disapply the Planning and Development Act 2000 and defines that the designated development is exempt 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 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(21) 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.

For clarity, I will provide a section-by-section summary of the Bill. There are 12 sections. Section 1 is a standard provision which provides for definitions.Senators 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. 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.

Section 6 provides that an assessment of the designated development shall be carried out by An Bord Pleanála for the purposes of the habitats directive in accordance with the relevant regulations.

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. The section also provides for processes relating to Article 16 of the habitats directive and the obligation to notify the European Commission that the designated development is exempt from the EIA directive. This last part ensures full compliance with the directive.

Section 8 sets out that the designated development shall be carried out in compliance with an approval given by the Minister under section 7. This ensures only works that are subject to an approval are carried out.

Section 9 sets out the Minister's power to make regulations to prescribe matters of procedure and administration and ensures every regulation made by the Minister under the Act will be laid before each House of the Oireachtas.

Section 10 sets out the means by which, in performing their functions under the Bill, the Minister and the board shall, insofar as is practicable, take into account the exceptional circumstance and compelling urgent necessity of the designated development, in a manner consistent with the requirements of section 15(1) of the Climate Action and Low Carbon Development Act 2015.

Section 11 provides that any expense incurred by the Minister in the administration of the provisions of the Bill, to such extent as may be sanctioned by the Minister for Public Expenditure and Reform, be paid out of moneys provided by the Oireachtas.

Section 12 contains standard provisions concerning the Short Title and commencement of the Act.

I have outlined the main provisions of this emergency measures Bill and provided additional detail on the sections. I hope that this will be of assistance to Senators. I look forward to an informed and meaningful debate and to working constructively with Senators on all sides of the House.

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