Erin McGreehan (Fianna Fail)
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I thank the Minister of State for joining us for this important debate on energy poverty. It is a matter that we all understand and the Minister of State shares my passion for doing all that we can to tackle it. We are in the midst of an energy crisis. Families are suffering from energy poverty, as outlined as recently as last week by the Society of St. Vincent de Paul. We are also in the midst of a climate crisis, but we have ambitious plans underpinned by the climate action plan and our commitments under COP26.

This is a complex issue. From one perspective, it is about the complexity involved in ensuring the stability of the energy grid across the island of Ireland. On the other hand, wasting energy is a moral issue. Hundreds of millions of euro worth of energy are dumped in Ireland instead of being used to tackle energy poverty. As individuals, we all know that we should not waste electricity or other forms of energy because it will cost us in our pockets and is bad for the environment. Furthermore, most of us grew up in homes where the consequences of leaving the immersion on were severe.

When I first heard of the scale of renewable energy that was being dumped in Ireland, I thought it was immoral, given that hundreds of thousands of families were in energy poverty. I recognise that there are technical and electricity grid-based challenges that need to be addressed, but if there is political and regulatory will, it can be achieved.

This is where EnergyCloud comes in. It is a not-for-profit organisation with a mission to create solutions and divert to Irish homes surplus renewable energy that would otherwise be wasted, with a primary focus on those households in fuel poverty. The much-needed electricity costs emergency benefit scheme will credit domestic electricity customers with €200 at a cost of €400 million. This is a one-off exceptional payment that is designed to tackle the cost of energy.

Regarding the renewable energy that is being dumped, I examined the potential retail cost to consumers and what it could cost families in fuel poverty. According to EirGrid, 1,448 GWh of zero-carbon energy from wind generation was dumped in 2020. This was equivalent to 11.4% of the total available wind energy. Based on Electric Ireland's 24-hour standard rate of 21.2 cent per KWh, the 1,448 GWh of dumped energy cost families more than €305 million, excluding VAT. The Minister of State will agree that this is immoral. It is likely that the 2021 and 2022 figures will be even higher. In less than four years, more than €1 billion in energy will have been dumped.

Something can be done about this. Last year, the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, launched the first phase of EnergyCloud, which involved a project with Clúid Housing. The goal of this initial phase is to reduce renewable energy wastage and divert energy towards the social good of heating water in fuel-poor homes. At the launch, the Minister stated that the simplicity of the project's approach was that it could utilise the existing infrastructure in the home, such as hot water tanks, to receive surplus renewable energy at a time when it was not needed on the grid. The use of existing infrastructure in the home reduces the capital expenditure required for this project and allows organisations like Clúid to upgrade their properties quickly in order to avail of surplus renewable energy.

Through our local authorities and AHBs, the State can play a leading role in helping to use surplus renewable energy while tackling energy poverty and ensuring that there is no waste.

Ossian Smyth (Dún Laoghaire, Green Party)
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I thank the Senator for her interesting contribution. I will address her specific questions in my supplementary response but give her my written answer first.

Given the unprecedented rise in electricity and gas prices, reducing the burden of fuel poverty is a matter of serious concern for the Government. A suite of measures is being developed and deployed by the Government to help reduce the impact of fuel poverty in the short and long terms. The Government is concerned that recent electricity and gas price increases caused by international conditions are putting increasing pressure on consumers, particularly those in a more vulnerable economic condition.

It is important to recognise that these price increases are not caused by governmental or regulatory decisions, as price regulation in this sector ended many years ago. Suppliers compete with one another on price and set their own prices accordingly, as one would expect in a competitive commercial market. It is also important to point out that all European markets are experiencing these price increases. While Ireland has its own specific circumstances, the rise in energy costs is not unique to us. The most immediate factor affecting electricity prices in Ireland is the upward trend in international gas prices, which has brought them to an unprecedented high. In Europe, wholesale natural gas prices have been on an upward curve since the second half of 2020 for a variety of international reasons. Current indications are that these higher prices will continue at a significantly greater level than in early 2020 for the foreseeable future. This feeds directly through to retail electricity prices because the wholesale price of electricity correlates strongly with the international price of gas, given that gas is a primary fossil fuel used in the generation of electricity.

As well as the package of measures that the Government recently introduced to combat the increases in the cost of living, I am convinced that the roll-out of renewable energy will, in the long term, reduce Ireland's susceptibility to spikes in international fuel prices. The Government is committed to ensuring that, by 2030, up to 80% of our electricity will come from renewable resources. This renewable energy will help to protect us from fluctuations in gas prices caused by global supply and trade issues. In this way, we will increase our energy security.

The first renewable electricity support scheme, RESS, auction for onshore wind and solar projects was held in 2020, with 63 projects progressing currently. The next auction process has begun, with the auction scheduled to take place in May. It will deliver a major increase in renewable electricity generation by the end of 2024. A third RESS onshore auction is under development. The Department of the Environment, Climate and Communications is finalising the terms and conditions of the first of three planned offshore renewable energy auctions this decade to deliver 5 GW of offshore wind energy by 2030.

The Government is tackling the impact on households of increasing energy costs through the tax and social welfare system.This was set out in the budget in 2022. The fuel allowance is one of a range of income supports paid by the Department of Social Protection, which also includes general social welfare schemes and the living alone payment increases to support those living alone and at a higher risk of poverty, along with the household benefits package. Targeted supports are also provided under the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs, for example, in the case of people with ill health.

Over the long term, the Government's energy efficiency and renewable energy measures are key. Government policy is driving investment in energy efficiency, investment in renewables, enhancing electricity interconnection and deepening the internal energy market. I will take energy efficiency as an example. Energy efficiency measures are not just essential to reduce emissions from our housing sector; they are also central to addressing the root causes of energy poverty and to improving health and social inclusion outcomes while at the same time contributing to decarbonisation.

Separately, grants for cavity wall and attic insulation will more than triple as part of the Government's response to the current exceptionally high energy prices. For example, in the case of a semi-detached home, the attic insulation grant is going to increase from €400 to €1,300. The cavity wall insulation grant will increase from €400 to €1,200. These are highly cost-effective upgrades. They are measures that can be deployed rapidly and at scale this year and it is expected that these works will pay back in between one and two years in most houses. The new grant rates will cover approximately 80% of the typical cost of these measures and will be available to all homeowners.

Using surplus renewable energy on the grid is another measure that could also potentially help alleviate fuel poverty and help our carbon emissions. One innovative technological solution that is currently being trialled is a solution between EnergyCloud and Clúid Housing, our largest approved housing body. The current project will initially see 50 families benefit. However, it is clear from Clúid and EnergyCloud that they have an ambitious target to support families in each of more than 8,300 Clúid properties throughout Ireland. This technology uses existing infrastructure in the home, such as a hot-water fuel tank, to receive surplus renewable energy at times when it is not needed on the energy grid. I welcome the trial and hope to see it become widespread in the coming years as just one in our suite of measures to help alleviate fuel poverty.

Erin McGreehan (Fianna Fail)
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The Minister of State quite rightly outlined that an incredible amount of work has been done by the Government so far, and we welcome that. However, as I mentioned, €305 million worth of retail value is being dumped annually. The redeployment of renewable energy to heat hot water in homes could also displace significant volumes of CO2 and avoid millions of euro in carbon penalties to Ireland. Crucially, that can be done now as that technology is in place. We just need the Commission for Regulation of Utilities to work with the State to make it happen. As the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, has stated, we already have those domestic hot-water tanks in our homes. EirGrid announced that the all-Ireland wind power record was set earlier this month and as someone who was out running cross-country at the weekend, I can attest that it was quite breezy and those wind speeds were considerable.

We are not being told the value of what is being dumped. While all the people are having to make stark choices about their own homes, the State is sleeping on this dumping. There is an opportunity to engage with EnergyCloud to explore the solutions available, to use this energy in social housing homes and to reduce the impact of fuel poverty. The Government needs to sit down with all the participants in this process and decide if we should continue to dump 100% renewable energy that could be used to address fuel poverty. Where there is a will, there is always a way.

Ossian Smyth (Dún Laoghaire, Green Party)
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The grid is changing. The electricity system is changing because of this big transition to renewable energy. One of the things that is changing is that we sometimes suddenly find ourselves in great surplus and in great deficit at other times because of the weather. Although the weather is predictable, the pattern in which our electricity is generated is different from the way it was in the past, when a power station could be turned on and off more easily. Sometimes we are in a position of surplus but electricity cannot easily be stored. We know about Turlough Hill, where water can be pumped up a hill and brought down, but we are limited in how much we can use that kind of thing.

We do have electricity interconnections with other countries. That is another way to balance the situation and get money back. We are close to getting the North-South interconnector ready. We are working with the French to put in the Celtic interconnector, which should also help. The idea of using surplus energy to heat water tanks in people's homes is a form of battery. It is a form of storing energy. That water obviously can be used. It can be used to heat the home, have a shower or whatever else. I am interested to hear about EnergyCloud. I will be contacting the Minister, Deputy Darragh O'Brien, and I will ask him about the progress on that scheme. I would love to see it rolled out. Organisations such as Clúid directly target people in energy poverty, which is exactly what we are trying to do. Much work is done before the budget to make sure that the changes that happen in the budget do not disadvantage people who are in energy poverty, leave them colder in their homes or unable to pay their bills. We work carefully with the Economic and Social Research Institute to make sure that the budget is progressive and a lot of work is done in that regard. I was interested to hear about the issues the Senator has raised and I thank her for bringing them to my attention.