Seanad debates

Tuesday, 20 February 2024

Gas (Amendment) Bill 2023: Committee Stage

 

1:00 pm

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

I will request that information. I will see whether I can find out from the CRU or my Department how many data centres are seeking direct connection to the gas grid. It is a fair question.

The approval I have from the Government for this legislation is simply for the integration of the current activities of Ervia into GNI. It does not provide for the board to engage in any new function or activity. As Senators are aware, Gas Networks Ireland is a semi-State public body. Its shares are 100% controlled by Government Ministers and, as a result, it is subject to the same criteria as other State bodies regarding its climate obligations. In particular, Gas Networks Ireland is listed as a relevant body under the Climate Action and Low Carbon Development Act 2015, as amended in 2021. The term "relevant body" includes a public body which is defined by reference to the Freedom of Information Act 2014, to which GNI is subject, and will continue to be subject with the passage of the Bill. As it is a relevant body, GNI performs its functions in a manner consistent with the most recent approved climate action plan. It has to be consistent with the most recently approved national long-term climate action strategy, national adaptation framework and approved sectoral adaptation plans, as well as with the furtherance of the national climate objective and the objective of mitigating greenhouse gas emissions and adapting to the effects of climate change in the State.

I will now turn to the questions on connection policy. The implementation of the European directive on common rules for the internal markets in renewable and natural gases and in hydrogen is the more appropriate legislative vehicle for consideration of decarbonisation of the gas grid and GNI's role and functions as provided for in the Gas Act 1976. In particular, the final version of the European gas directive provides for member states to implement measures to phase out natural gas in order to reach the climate neutrality objectives set out by the EU or for other technical reasons. This final version of the European gas directive provides for the development of a clear regulatory framework allowing for the refusal of access and the possible disconnection of network users in order to attain this policy objective. Network users can be refused access or may be disconnected if this concerns infrastructure that will be decommissioned in line with the network development plan at transmission level or decommissioning is envisaged in line with the provisions of the directive. It also notes that, at the same time, adequate measures should be undertaken to protect network users in such circumstances. It is also important that the refusal of access and disconnection decisions are subject to objective, transparent and non-discriminatory criteria developed by regulatory authorities.

Gas Networks Ireland is required under the current 2009 gas directive, as amended, to publish a ten-year network development plan every two years and it must be submitted to the CRU for approval. This is available to the public and is published on the GNI website. The new gas directive updates the requirements involved to include biomethane and hydrogen developments and to ensure they are developed in conjunction with decarbonisation of the gas grid. It is now a requirement for member states to ensure that distribution system operators such as GNI develop network decommissioning plans when a reduction in gas demand requiring decommissioning of natural gas distribution networks or parts of said network is expected. These plans will be developed in close co-operation with hydrogen distribution network operators, distribution system operators for electricity and district heating and cooling operators, ensuring effective energy system integration and reflecting the reduced use of natural gas for the heating and cooling of buildings where more energy- and cost-efficient alternatives are available. Negotiations of this directive concluded at the end of 2023.

Another significant element the Senator is aware of is the publication of the Energy Security in Ireland to 2030 report. This outlines a new strategy to ensure energy security in Ireland for this decade while ensuring a sustainable transition to carbon neutral energy systems by 2050. Within this package is a specific action approved by Government to review gas connection policy and introduce gas demand flexibility measures. Under the Climate Action Plan 2023, the CRU has been assigned as the lead organisation to complete and publish an electricity demand side strategy and implementation plan. As part of this, the CRU is undertaking a review of the processing of new large energy demand connections to the electricity and gas systems. The aim of this review is to provide a pathway for new large energy user connections to the electricity and gas systems, which minimises the impact on national carbon emissions while taking into account the capacity of the system with regard to the supply of energy and grid infrastructure.

Given that the proposed amendment is outside the scope of the Bill, as agreed by the Government, I propose to reject the amendment while acknowledging GNI's current obligations under current and pending legislation.

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