Seanad debates
Wednesday, 29 April 2026
Energy Security: Statements
2:00 am
Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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I welcome the opportunity to discuss the issue of energy security, a topic which has been brought into really sharp focus by the current crisis and conflict in the Middle East. Energy is obviously central to all social and economic activity in Ireland and, while Ireland is significantly increasing our production of renewable energy, we continue to rely on oil and gas as part of our energy and transport systems.
The closure of the Strait of Hormuz has greatly disrupted the global oil and gas markets. The International Energy Agency reports that around 20% of the world’s oil and liquified natural gas has been blocked since the end of February. The prolonged and ongoing nature of the war and longer-term damage to infrastructure and established trade routes further compound the scale of the impact and the challenge. The Government has been carefully monitoring the situation in the Middle East and we are taking proactive measures to ensure there is no disruption to our essential fuel imports. It is important to underline that, in the short term, the main impact of the conflict is on fuel prices for Irish consumers. Our security of supply of oil and gas is robust and our energy system is secure.
The only way to enhance Ireland’s energy resilience and insulate us from price and supply shocks is to reduce our reliance on fossil fuels. That is why the Government is determined to build out more clean Irish renewable energy and to deepen interconnection with our European peers. Just last week, I signed a memorandum of understanding with the Spanish minster for energy, Sara Aagesen Muñoz, in respect of an Irish interconnector with Spain. We currently have over 8 GW of renewable electricity generation capacity connected to the network. This a remarkable achievement as it means we have added approximately 5 GW of new renewable electricity generation capacity in just ten years. That includes doubling our wind capacity and establishing solar energy as a major pillar of our energy supply. We are among world leaders for installed onshore wind capacity per capita and we are the European leader in the integration of variable renewable electricity onto the grid.We get a greater share of our electricity from onshore wind farms than from anywhere else in Europe. In a few short years, solar has become a major component of our electricity supply. Solar is now the third highest supplier of indigenously generated electricity to the electricity grid, behind natural gas and wind. Solar is not only reducing electricity bills for households and businesses but also is easing pressure on the grid by lowering peak demand and supporting a more resilient energy system.
I want to do more to make solar affordable and accessible for householders and businesses. We are prioritising the development of more renewable energy, both onshore and offshore, including through reforming the planning system and making it easier to build clean energy projects. This will protect Irish energy consumers from the volatility of the high cost of imported fossil fuels. We are also accelerating the development of Ireland’s electricity grid to build resilience and to connect renewable energy with demand.
We have provided €3.5 billion in equity to Ireland’s onshore and offshore grid. In addition, increasing quantities of batteries, long-duration storage, interconnection capacity and demand-side response have also been procured in recent capacity market auctions, which will lessen Ireland’s dependence on fossil fuel imports in the coming years. Significant supports are available to homes and businesses to boost energy efficiency and to electrify. This will also reduce reliance on imported fossil fuels such as gas and home heating oil.
In the budget just gone, a record allocation of €640 million in Exchequer funding was secured, allowing us to target 73,000 home energy upgrades this year alone. This will build on over 250,000 households that have already benefited from home energy upgrades. A deep energy retrofit can save a household up to €1,100 per year in its bills. Our allocation for 2026 includes €340 million for the warmer homes scheme, which provides fully funded upgrades for those in energy poverty. To date, we have completed about 34,000 homes under the scheme, with grants of 100%.
The current oil situation in Ireland is stable, with no issue with supply expected in the next six weeks. In the case of jet fuel, alternative sourcing arrangements have been put in place. Jet fuel is sourced from the United States. My Department has been proactively managing the security of the supply situation in line with the oil emergency response plan. The plan and the underpinning legislation and structures have been substantially enhanced and updated following the Russian invasion of Ukraine, building on the strong foundations already in place. As a result, Ireland is better prepared to manage the current situation.
The response plan has been initiated and sets out a whole-of-government response covering the full duration of an oil emergency response, from initial hazard analysis through to response and recovery. The Government has legal powers and structures in place to manage the situation and to take further action should we need to do so. The National Oil Reserves Agency, NORA, provides a strategic buffer to protect Ireland in the event of a severe and prolonged escalation of this crisis. We currently hold about 85 days’ worth of supply in our strategic reserve. This reserve encompasses refined petroleum products, including petrol, diesel, jet fuel and kerosene.
On 11 March, Ministers in member countries of the International Energy Agency agreed to initiate an action to release strategic reserves of oil to address the supply issues, and Ireland contributed 1.6 million barrels to alleviate supply pressures.
On natural gas, the current assessment is that there is no risk to security of supply in Ireland. The assessment is based on engagement with the International Energy Agency, the European Commission, Britain’s Department for Energy Security and Net Zero, as well as with Gas Networks Ireland. Ireland imports about 80% of its natural gas from Britain via two subsea interconnectors, with the remaining gas being produced indigenously at the Corrib field. Britain has a diverse supply of natural gas and is not dependent on gas from the Middle East. Prior to the conflict, only 1% of UK gas supply was sourced from Qatar. Imports have been increasing from the United States and other regions, so there is currently limited risk to imports from Britain.
It is not currently anticipated that the Iran conflict will have a material impact on Ireland’s security of electricity supply, and my Department has ongoing contact with EirGrid and the Commission for Regulation of Utilities, CRU, on any potential risk to security of supply through a number of channels and working groups. I engage with them personally. While the Government is committed to ambitious decarbonisation targets, the variable nature of some renewable technologies currently requires that dispatchable, typically fossil fuel generation remains crucial for ensuring security of supply.
In the longer term, the delivery of a strategic gas emergency reserve will play a vital role in ensuring Ireland’s energy security. The strategic gas emergency reserve will protect Ireland’s energy systems should any disruption occur to Ireland’s gas infrastructure. It is not intended for commercial use. It will be State-owned, State-managed, State-led and State-operated and will be divested when no longer required to secure Ireland’s energy systems.
Although Ireland’s energy security situation is currently stable, it goes without saying that households and businesses are being exposed to higher fuel prices. We recognise this as a Government and we understand the real financial pressures that many across the country are facing because of the developments in the Middle East. As a small open economy with historical reliance on fossil fuels, Ireland is particularly vulnerable to such global energy price shocks. The major disruption to global energy supply because of the conflict in the Middle East has been reflected in extremely volatile commodity prices over the past number of weeks. For that reason, in recent days we introduced an additional package of measures on fuel costs and supports for the transport, farming and fisheries sectors. The practical measures introduced by the Government on 12 April include reductions in excise on diesel and petrol by a further 10 cent, to 32 cent and 27 cent, respectively; a reduction in excise on marked gas oil, or green diesel, by a further 2.4 cent to 7.4 cent; a deferral of the planned increase in the carbon tax; and a reduction in excise, including the NORA levy reduction, which took effect from midnight on 1 April and will run to the end of July this year.
The Government has announced a new road transport support scheme, as well as supports for coach operators providing Local Link services. The combined cost is €40 million per month for three months, backdated to 1 March. That scheme opens today, and it and the agrifood scheme will be open for applications in the next two weeks. The €100 million fuel subsidy support scheme will assist farmers, agricultural contractors and fishers. It was announced by my colleague Deputy Heydon, the Minister for Agriculture, Food and the Marine.
The new package of supports is in addition to earlier measures announced in March, including the expansion of the diesel rebate scheme, backdated to January, and an extension of the fuel allowance by a further four weeks. Under the fuel allowance scheme, about one quarter of households in the country, or 470,000, receive direct payments.
No doubt, this is a very volatile situation. We have to manage it in a sustainable way on behalf of our people. I have every confidence that we will be able to do that. I appreciate the support of Government Senators and, indeed, Opposition Senators for some of the measures we have taken. However, we need to retain the ability to respond further should this situation deteriorate. We all hope for a de-escalation of the current conflict in the Middle East.
Shane Curley (Fianna Fail)
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Sula dtéim ar aghaidh, ba mhaith liom fáilte a chur roimh na daoine sa Ghailearaí. I welcome the guests of Deputy Joe Neville, namely, Tara Carpenter, Lexie Doherty and Isabella Morone. Gabhaim buíochas leo as ucht teacht isteach inniu.
Lorraine Clifford-Lee (Fianna Fail)
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I thank the Minister for coming in to discuss this important topic. It is of such importance that it should be on the schedule regularly. Energy security is at the forefront of our minds currently but it should remain so. It is what will drive global geopolitical conflict in the future. It is the question of our time and we need to prepare adequately. We have had a couple of shocks with the invasion of Ukraine and the conflict in the Middle East. We know insecurity is coming and we know our vulnerabilities. As the Minister said, as a small open economy historically reliant on fossil fuels, Ireland is particularly vulnerable to global price shocks. We know that, and we have been well insulated by the measures that he and his colleagues in government have taken. However, now that we have some time to assess how we move forward, we should grasp the opportunity with both hands. I am sure the Minister will have the co-operation of all parties across this House and the Lower House to discuss our situation, our vulnerabilities and our opportunities, and to ascertain how we can move forward. We have the economic firepower to ensure our economic resilience, our energy resilience and the future of our country, as well as to maintain economic success.
We need to reduce our dependency on fossil fuels and that is widely acknowledged. We have done a lot and in this regard, the Minister has outlined specific instances of where we have increased our solar and wind energy output.Education is key. We are becoming more educated in relation to energy conservation and generation and the impacts of various energy sources. There should be a national conversation brought to people so we can see the difference that a deep retrofit of a house can make, the difference that solar panels by themselves can make and how each individual household can play its part in ensuring the country is resilient when it comes to our energy situation.
The interconnector with Spain brokered by the Minister is a positive development and is to be welcomed. It is a job well done. The doubling of wind capacity onshore has been significant. As the Minister pointed out, we are a world leader. However, we are falling down with offshore wind energy and we need to address that. As an island on the Atlantic, we have an abundance of good wind that can be harnessed and used. It could become the equivalent of Ireland striking oil. We have wind and the money to invest in infrastructure. We need to be careful that we do not sell off our natural resources to private entities. We need to look at the Norway model and see the good that it put its oil strike to. That is what we can do. We have the capacity. I know the Minister is very conscious, as a Republican and a nationalist, of keeping our national resources within State ownership for the benefit of the people of this country.
The position as regards jet fuel is good to hear. Many of us have summer holidays planned and are hoping to be able to take them. As an island nation, all jokes aside, we are heavily reliant on our ability to fly in and out of this island. We also rely on it for business and world leaders to come here. Securing our jet fuel position is very welcome. I thank the Minister for the update.
We will have to touch on the blockades on oil refineries in the course of this debate. It was a very unpleasant situation. The Minister was dealing with the situation as it emerged and many Members of the Houses were dealing with people in our constituencies. Across the board, people were horrified by the blockades on our oil refineries. We need to ensure that does not happen again. We need to take steps to protect vital infrastructure such as oil refineries. The Minister might take the opportunity to address how we will move forward and protect oil refineries through dialogue and co-operation and by emphasising their importance.
The 85-day buffer the Minister referred to is positive but is 85 days enough? Is there capacity to increase that? That is information that I would like to have. The elephant in the room when we talk about energy security is the issue of nuclear energy. That conversation is starting quietly. Traditionally and legally we cannot have nuclear energy. However, the Minister needs to have conversations, if he is not already having them, in the Department and the Government, about how we can explore the issue. The issue is so taboo that it has been off the table. I do not know whether any of us have had a chance to form a position on it. We should be afforded that chance. Maybe nuclear energy is something we will never touch. Maybe this generation of politician will not be in favour of it. It is incumbent on the Government, however, to have a public conversation that politicians can take part in. It is important to consider all energy sources because we cannot afford, as a country, to be vulnerable. We are in a relatively vulnerable position. As we know, in France over 60% of energy is produced through nuclear power. France is our near neighbour and has been successfully using it. We have the technical expertise and scientific knowledge in this country to have a reasoned and measured debate. I would like to have that so that we can see what our position is and put all options on the table. Then we can exclude the options, if needs be. We are putting ourselves in a very vulnerable position if we are only looking at solar and wind energy, although I very much welcome those.
I welcome the increase in supports the Minister put in place for households to retrofit their homes and do the upgrades in a piecemeal fashion. That is something many of us have been calling for. I would like to see those supports increased. While they are welcome, they can still be out of reach for many ordinary families. If there was capacity in the budget to increase those supports, it would be welcome. However, this cannot be the only solution. We need at least to have a fully informed public debate on the possibility of adopting nuclear energy.
Aubrey McCarthy (Independent)
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I thank the Minister for being here and for his statement. I would like to share my time with my colleague Senator Sharon Keogan.
Aubrey McCarthy (Independent)
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According to the Minister's statement, we are having this discussion at a time of uncertainty. The Minister mentioned the Strait of Hormuz. Global energy markets are certainly experiencing shockwaves. The ongoing war in Iran has sent shockwaves through international markets, as mentioned, and disrupted oil and gas supplies. It has exposed Ireland once again to the fragility of our energy systems. That is because they are largely based on imported fuels.
Throughout Europe, including in Ireland, we are feeling the consequences of rising prices, economic hardships and growing anxiety about the future. I have a haulage business and every week we are looking at the diesel prices and asking if we are able to absorb the increase or whether we should let our customers know we cannot absorb it and then increase the price of an already fixed price. We have changed even the way we are charging.
This is not just an ordinary energy crisis. It is a security crisis. That is why I am delighted to see in the Minister's statement that we energy is secure in Ireland. However, Ireland remains one of the most import-dependent countries in Europe. Nearly 80% of our energy comes from abroad, the vast majority in the form of fossil fuels. That means decisions that are made thousands of miles away affect us. Even the Strait of Hormuz, when we see it on the news, impacts everybody out there. That is why we had the recent protests.
Also, the Iran war has made the reality impossible to ignore. We saw that when the streets were blocked recently. Since the outbreak of the conflict earlier this year, global energy markets have experienced some of the most severe disruptions in modern history. Prices have surged. Some people have made a lot of money out of that. Roughly one fifth of the world's energy supplies pass through the Strait of Hormuz. That has become a geographical choke point.
Here in Ireland the effects have become immediate and fuel costs have risen sharply. That is why the ordinary, hard-working person was protesting recently. That is the price we are paying for our dependency on fossil fuels. When our energy system relies on imports we are definitely not in control. That is not the Government's fault but the Government can change it. Even in the Minister's statement, we see there is an opportunity here. Throughout Europe we are seeing a rapid shift in behaviour. I spoke to a gentleman in Naas yesterday who has a car garage. He said sales of electric and hybrid vehicles have shot up. Households are installing solar panels at a record rate. Demand for renewable technology - solar and wind, as has been mentioned - is accelerating. The Minister's statement outlines how we have made significant steps. I may have missed whether any steps have been made regarding storage. Recently, we were talking about €1.4 million of energy being wasted every day, which is about €400 million a year. If we could store that and work on that, Ireland would have a good starting point.
We have made real progress with renewable energy, as the Minister outlined. It supplies a significant amount of electricity. We have set ambitious targets, specifically achieving 80% renewable energy by 2030 and net zero emissions by 2050. Electricity is only part of the picture. Transport, my own industry, still depends overwhelmingly on fossil fuel.Oil alone accounts for nearly half of our total energy demand, and we import all of it. I know there are issues regarding Tarbet power station, the new facility on the Shannon, etc. We have promised it for years.
There is a huge challenge in our economy regarding energy security. We are just not producing clean electricity. We need to transform our entire energy system. That means accelerating the transition to renewable energy. There is untapped potential in this regard. The Minister’s statement outlined that in the context of wind energy and emerging technologies like green hydrogen. These are not just climate solutions; they are security solutions. We must electrify our economy, even when it comes to the haulage industry. It must shift away from oil and gas and move towards electricity powered by renewables. That means investing in electric vehicles and modern infrastructure, but supports must be put in place for ordinary businesses.
We need to strengthen our energy resilience. The recent crisis has shown the importance of storage. Rather than binning some €400 million of energy per year, we should store it in batteries, etc. There is a need for such storage. The grid will benefit from it.
We must recognise that energy policy is part of national security policy. The lesson of the Iran war is absolutely clear. Our fossil fuel dependence has exposed us greatly. Ireland has a choice. Do we remain exposed and reliant on imports of fossil fuels or do we act decisively?
Sharon Keogan (Independent)
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Last year, in this Chamber, I asked whether we could build Ardnacrusha power station today. It was a rhetorical question meant to highlight how restrictive our planning system has become and how little will this Government often shows. Today, however, it is a serious question because large-scale energy infrastructure is no longer a thoughtful idea but an urgent necessity. The problem is that this Government has adopted an approach that is nearly punitive towards ordinary citizens. Instead of fixing infrastructure first, it tries to force behaviour through price increases. Make energy cheaper through public projects and State-led investment and people will follow. Instead, however, we punish motorists who are only motorists because the State fails to give them viable public transport or properly planned towns. Raising prices is not leadership; it is abdication.
If we are serious about energy security, we must be serious about nuclear power. It provides reliable, round-the-clock electricity, independent of weather or season. Wind power can be cheap at the margin but when grid upgrades, back-up generation, storage and system stability are included, its real-systems cost converges with nuclear energy. Over a lifespan of 60 years or more, nuclear offers price stability and the security that an island nation badly needs.
We must also address the decision to end hydrocarbon exploration. Ireland still imports close to 80% of its energy. Ruling out domestic production outright makes us more, rather than less, exposed. Limited, well-regulated drilling could reduce imports and provide transitional revenues for infrastructure. That only works if the State captures proper value. Norway taxed profits, took public stakes and invested for the long term. Ireland did none of that, but we can change it.
Energy security will not be built through penalties and slogans. It will be built through courage, infrastructure and the will to build again.
Ollie Crowe (Fianna Fail)
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Sula leanaim ar aghaidh, I welcome our special guests in the Distinguished Visitors Gallery today. We have Senator Ollie Crowe’s mother, Breda Crowe, as well as his sister-in-law, Caroline Crowe. I hope they are both very proud of Senator Crowe. He has been a great mentor to me since I became a Senator. He is a gentleman. Breda and Caroline are very welcome.
Mark Duffy (Fine Gael)
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I thank the Minister of State as well as the Minister who was present earlier, for being here for this incredibly important debate and for listening intently on the contributions that have been made. We are in a perilous situation where nothing is the same as it was previously. We have seen that with the weaponisation of fuel and energy following Putin’s aggression in Ukraine. We have seen it more recently in the Middle East with the Strait of Hormuz. We see how quickly anarchy can be at risk of breaking out, whether in Ireland or anywhere around the world, when the supply and cost of energy are threatened and undermined.
We have many opportunities in Ireland to turn a corner to decarbonise and improve energy security and independence. Wind and solar are two elements on which we can do more. I welcome the supports for individual homeowners, such as the deep retrofit grants and the targeting of the most vulnerable and most affected by high energy prices. Those in receipt of the fuel allowance may benefit from a 100% retrofit grant. That is a good approach. Further interventions, such as supports on solar energy and battery storage on an individual residential basis, can play a significant role in supporting people and mitigating the worst challenges of the variation in energy prices.
We need clarity when it comes to wind and solar energy. Clarity is also needed for onshore and offshore wind farm proposals. They can and will play an important role but clear, defined strategies for all of our counties are needed. Previously, I was the chair of Mayo County Council’s enterprise, marine and planning strategic policy committee. This is something that is regularly asked for at both a county and national level. I am also a member of the Oireachtas Joint Committee on Climate, Environment and Energy. This is needed to realise the potential of onshore wind.
The same goes for solar. While solar is a positive measure on an individual basis, solar farms need to have defined limits. The Minister of State will have experienced this in his county. We all experience it in our areas. Clarity is needed as to what can be built and where and when it can happen. We cannot have a free-for-all process.
In respect of gas exploration, we import 80% of our gas. While we have long-term energy reserves of over 80 days for fuel, we do not have the same level of security for gas. Although the Minister outlined in his contribution that there is no risk to supply, we have an opportunity to increase our independence on gas use. A total of 20% of our gas comes from the Corrib field off the coast of Belmullet, County Mayo, but Inishkea gas field has enormous potential to supply more gas to the network in Ireland. I would welcome the Minister of State’s thoughts on the Inishkea gas fields.
While we need to decarbonise, we must be pragmatic. We cannot be held ransom by rogue states and operators or have the whole cohesion of the country threatened based on external factors. If we can improve our energy security and independence, we need to do it. I welcome the Minister of State’s contribution in that regard.
The energy cloud concept has been good in reducing bills and topping people up with hot water through their tanks when there is an oversupply of electricity on the grid. Rather than a dispatch down where turbines are turned off, energy is released back onto the grid free of charge, which helps vulnerable users to reduce bills. I welcome the leadership of Mayo County Council in piloting the concept. Hopefully, it will be rolled out further. The concept, which Senator McCarthy raised, of not wasting wind energy needs to be mobilised more. In a broader sense, an idea that I have thought about and perhaps raised previously in this Chamber – I welcome the contribution of both the Minister of State and the Minister in this regard – is to have battery storage in towns to benefit individual residents in the event of power outages.We saw the vulnerability last January with Storm Éowyn. To support voluntary charity organisations with reduced costs for their energy on a strategic level, there should be State-built battery storage for a town, for example, which could benefit from the oversupply at certain times. We have some of the largest wind farms in the country in my locality, such as the Oweninny wind farm in Bellacorick just outside Crossmolina. When there is an oversupply, it should not be wasted. Can battery storage be mobilised in localities for communities to benefit from the oversupply that is being lost and wasted, whether that be sporting organisations with high bills, arts centres, charities and community groups? There is a great opportunity to realise that. I would welcome the Minister of State's contribution on that.
Private wires legislation is a good opportunity to encourage 80% renewable supply for larger industrial developments such as data centres. Having the ability to directly access renewable energy without interacting directly with the grid is a good opportunity. On an individual level, we need to continue to support homeowners who want to do a full retrofit of their house, or individual measures, and mobilise and use the opportunity battery and solar offer. We need to be really progressive and swiftly move forward on key strategic opportunities. Where there is discussion on nuclear, we need to have a full and open debate on all opportunities as well the Inishkea gas field. Clarity is needed on strategic projects such as wind and solar farms. I welcome the Minister of State's contributions and thoughts. I thank him for being here for the discussion.
Joanne Collins (Sinn Fein)
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I welcome the Minister of State. Energy security goes to the heart of our economic stability, climate obligations and the basic fairness owed to our citizens. The recent warnings from EirGrid should set alarm bells ringing across this House. Its assessment was stark. Over the next decade, Ireland faces serious challenges in meeting overall electricity demand. A key driver of that risk is the unchecked expansion of data centres. This is not a new concern. Sinn Féin has consistently warned that the Government's approach in this area is unsustainable. Now, the State's own operator is confirming it. The figures speak for themselves. Since 2015, electricity demand from data centres has increased by over 500%. According to the CSO, these facilities accounted for 22% of all metered electricity consumption in 2024 up from 5% less than a decade ago. The projections suggest that could rise to at least one third of total electricity demand by the end of this decade.
To put that into context, data centres now consume more electricity than all of our rural households combined. At the same time, families struggling with the cost of living are paying twice as much for electricity as some of these large-scale users. That is not just unsustainable; it is fundamentally unfair on households. Workers, families and small businesses are effectively being asked to subsidise what is placing our electricity under so much strain. While demand soars, the Government has failed to keep pace with investment and generation capacity. This is a point Sinn Féin has raised time and again. Once again, it has been ignored.
Where do we go from here? The first come, first-served basis must be ended when it comes to grid connections. It makes no sense for critical infrastructure like housing and public transport to be left waiting while energy-intensive data centres get a wave through. The framework that puts the public interest first needs to be prioritised, ensuring energy, affordability, housing delivery and essential services take precedence over corporate demand. The supply side must also be addressed. This is where Ireland has enormous untapped potential. Offshore wind is not just an opportunity; it is a necessity. Our Atlantic coastline offers some of the best wind resource in Europe. If properly harnessed, offshore wind can transform Ireland from a country worried about energy shortages to a net exporter of clean energy, but it requires urgency, co-ordination and investment.
In that context, the role of Shannon Foynes Port Company, with which I know the Minister of State is familiar, is critical. The Shannon Estuary has been identified as a key hub for offshore renewable energy, particularly for floating wind. With the right support, Shannon Foynes can become a strategic centre for the assembly, servicing and development of offshore wind infrastructure. It is not just about energy security. This is also about regional development, job creation and ensuring the benefits of the green transition are felt across the country, which includes the mid-west. This will not happen by accident. It requires a Government willing to plan, invest and prioritise long-term national interest over short-term gain. I know the designated marine area plans, DMAPs, are progressing at the moment. It would be nice to see them progress faster and if they had started on the west coast where Shannon Foynes Port has a plan in place, it would come in before the next stream of funding ends. Instead, we have seen a reactive approach that rolls out the red carpet to data centres while failing to build the infrastructure needed to support sustainable growth. The consequences are clear - pressure on the grid, rising costs for households and increasing risk to our energy security.
Ireland stands at a crossroads. We can continue down the current path, which is inequitable, unsustainable and increasingly risky, or we can choose a different approach that puts our citizens first, invests in renewable capacity and secures an energy future. Sinn Féin is clear - the public interest must come first. That means reining in the reckless expansion of data centres, prioritising grid access for essential needs and accelerating the development of offshore wind with strategic assessment and assets like Shannon Foynes Port at the heart of it. If we get this right, we can deliver affordable energy, meet our climate targets and build a resilient economy for the future. However, if we get it wrong, ordinary people will have to pay for it again.
Shane Curley (Fianna Fail)
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Sula dtéim ar aghaidh, ba mhaith liom fáilte a chur roimh na daoine sa Ghailearaí. I think I missed the memo on bring your mam to work day today. We have Deputy Pádraig Rice with his mam, Teresa, and his aunt, Marie McCarthy, in the Gallery. They are all very welcome. Thanks for coming in today. He is the second Member to have his mother in the Gallery in the last few minutes.
Glaoim ar an Seanadóir Cosgrove. An bhfuil sí ag iarraidh am a roinnt?
Nessa Cosgrove (Labour)
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Labhróidh mise ar dtús. Tá trí nóiméad agam. Cuirim fáilte roimh an Aire. It is no exaggeration to say that the global economy we have built around extractor consumerism is totally dependent on the availability of cheap and reliable fossil fuels, and that the reliance on oil and gas has led the world into countless conflicts in modern times. We do not need to tell anyone that. It is not called black gold for nothing. Control of their own fossil fuel resources has genuinely brought independence and sovereignty to many nations, including Arab nations. It has brought levels of prosperity and progress but has also brought misery, pollution and death. What it has not brought is security. Even nations that control their own fossil fuel resources have neither energy security nor physical security.
During our discussions on the national development plan and since, we have heard a lot of talk from Government about the need to invest in a floating storage and regasification unit, FSRU. This will be the first time substantial amounts of liquefied natural gas will be introduced into the Irish energy mix. It beggars belief that at exactly the time we are supposed to be transitioning from fossil fuels to sustainable energy, this Government has made a deliberate decision to jettison its climate commitments and encourage the importation of huge amounts of this damaging, dirty, filthy, methane-rich gas into our energy mix. Methane is 80 times more warming than CO2. An FSRU will not be an emergency reserve. In order to remain safe, the gas needs to be vented, emptied and refilled at least six times every year.I completely dispute any argument that LNG is a necessary step towards energy security. Even Paul Griffiths, the CEO of Predator Oil & Gas, has agreed that he would not live beside an LNG terminal for fear that it might blow up. The attacks on Qatar's LNG infrastructure have shown that these are not ill-founded fears, and that a floating tank of gas is a much easier target for enemies than undersea pipelines. The export of LNG from Qatar has now collapsed. The price of LNG has soared by a third since the war began, and supply is likely to be impacted for years. Those voices within the Government who see LNG as a step towards energy security will encourage us to frack for our own gas. I am particularly affected in my area where I live in Sligo and Leitrim. We will be encouraged to frack for our own gas in Sligo, Leitrim and across the Border counties, regardless of the consequences we know exist in the form of environmental and health impacts on animals and humans. It beggars belief that there are three Government Ministers in my own constituency and they are still touting this. In fairness, the former Deputy Tony McLoughlin of Fine Gael was the first person to bring in a ban on the extraction of LNG in Ireland, but this Government has reneged completely on it.
Continued reliance on fossil fuels will not bring energy security. We know it will only bring dependency on unstable regions and markets, and the continued ruination of our climate and environment. We need to drastically increase the speed at which we decarbonised. That has come up here over and over. We know we have abundant natural resources such as onshore and offshore wind and an increasingly viable solar sector. We also have huge tidal energy potential. I hope the Minister of State will listen to this. We know we need energy security. I think at this stage the penny has finally dropped with us all that we cannot rely on fossil fuels. This means smart investment in the regeneration of renewable energy and the smart electrification of our grid. We know at this stage that spending money on fossil fuel infrastructure is not an investment in energy security. It is a frittering away of our independence, our economy and our climate. If this Government does nothing else, I hope it will stop the building of this LNG infrastructure.
Patricia Stephenson (Social Democrats)
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Ireland has an urgent need to develop clean, resilient domestic energy infrastructure to protect communities and businesses from the ongoing global shocks we have seen recently. The shocks from recent times will continue on. This is not a once-off situation. Energy security is not just an economic concern. It is not a way to prevent future disruptions. Governments have a social obligation to ensure that everyone has access to clean, affordable and reliable energy. Relying on the importation of fossil fuels is no longer sustainable as we lurch from one energy crisis to the next.
The Government has contributed to this in some ways by allowing carte blanche to developers for the development of data centres. I think 22% of our energy needs are now being used by data centres, compared with our closest neighbours on the Continent, which I think may be the Netherlands, where they are using only 2%. This is pushing up prices for domestic consumers and undermining our energy security sovereignty. It is irresponsible and reckless and it is not sustainable to keep growing. I know the moratorium was recently lifted as well. This is a disaster of a policy decision. It beggars belief that we are here having a discussion about energy security while that is happening in tandem.
Earlier this year, EirGrid stated that up to 75% of our electricity generation could come from renewable energy sources but we are reaching just over half of our demand in this way. Of course, the biggest drain on this is from data centres. We are basically giving them dibs on our electricity rather than prioritising businesses and families who are in energy crisis. We have opportunities to develop energy security. Those opportunities have been wide open for years for the Government to take, but it has failed to seize them. We have untapped potential in solar but I feel the Government is blind to those opportunities and we are ignoring them. When we are exposed to so many of these external shocks, it is shocking that we are not leaning into the opportunities for solar in a more meaningful way.
The Social Democrats have put forward a five-point plan on this, Solar for All, which would provide for a doubling of grants for solar panel installation and cover up to 1 million homes in Ireland. One million homes in Ireland are suitable for solar panels but do not have them, so we need a nationwide installation programme that can be rolled out quickly. We would also reinstate the €1,000 grant that can be used for battery storage. Battery storage has improved. The quality of battery storage technology in the last five years is amazing compared with what it used to be. This is a crucial way forward. The Government cut that in 2022 for some reason; I am not sure why. We also have the warmer homes scheme. We need to be targeting vulnerable households for solar under this scheme and cut electricity costs for them. That would be something like €450 a year if we gave the houses that fall under that scheme free solar panels. We also need to roll it out for businesses.
The other glaring gap is the roll-out of plug-in solar. Two years ago, the Department said it would look into regulation around plug-in solar, yet we wait. In 2019, the Government said there was indeed a crisis when it came to climate, and it has taken two years to look at regulation around plug-in solar, a technology that is being used widely in other European countries. This could be plugged in to people's gardens and balconies tomorrow if we regulated for it, immediately reducing people's energy bills. It is a no-brainer. We have to speed up the response around plug-in solar.
Social Justice Ireland released a statement yesterday saying that as the number of renters increases in Ireland, non-homeowners are left out of the cost-saving retrofitting schemes. It points out that many landlords are simply not motivated to retrofit properties they are renting out because they are not going to benefit directly from the energy cost savings. That is really frustrating for a lot of renters to hear. We need robust policies to ensure either that landlords are motivated to retrofit properties they are renting out or that renters can access effective renewable energy such as plug-in solar to allow them to benefit like the rest of the population.
The potential for renewable energy to reduce our reliance on imported fossil fuels in Ireland is huge. This kind of domestically generated energy would bring down the cost of bills for households and businesses. It would protect us and give us a barrier from so many of the external shocks we have seen and will continue to see as the world becomes more volatile. It is often said the best time to plant a tree was a hundred years ago but that the next best time to plant one is today. There has been a missed opportunity when it comes to solar and renewable energy in Ireland. We can all point fingers and appoint blame. Today is the day to fix that and really commit to rolling it out. It is the future. We need clean energy in Ireland. We need security. We also need to put measures and protections in place for data centres.
Alice-Mary Higgins (Independent)
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I sit on the climate and energy committee and we discuss energy security all the time, or rather we discuss energy policy all the time. It is interesting that energy security gets invoked at certain points, and then at other points in the conversation it is missing as a topic. We heard a lot about energy security when the Government was pushing to introduce the LNG reserves and the floating storage regasification unit, FSRU. That was being cited again and again. The committee looked at it and it was clear that there although there was one very specific risk, one very particular scenario, to which this arguably could be one of the responses, this new infrastructure does nothing for most of the other very likely and predictable energy security risks and scenarios we are looking to in the future. Of course, the first energy security review the State did came down against LNG infrastructure. It said we should not do it because it was not the right approach. They did another energy security review, therefore, and certain factors went into the new review. I should note that the committee has called for a further energy security review. They took NORA, the national oil reserve, out of the equation, even though that is fuel substitution. In the cost-benefit analysis, they did not give consideration to using wind and battery together. A number of very strange decisions in the new energy security review and cost-benefit analysis seemed to be designed, frankly, or certainly came to the effect that the State was justifying this new LNG terminal.
What do we know about the gas that goes in, the methane? It is 80% more impactful, as we have heard. Not only that, but this kind of gas, methane, hits faster. It is effectively an accelerant for climate change. If we look to the next ten to 20 years, the period in which we need to act, this is something that will have its most devastating impact in that period. Indeed, LNG will largely be bought from the United States, which has left the Paris Agreement. It is an extraordinary, wild idea that we are going to lean in and intensify one of the known security risks, including energy security risks, which is climate change, and contribute to that market and be part of it, in response to this one hypothetical case where cable might be cut prior to the arrival of the many new interconnectors.I welcome the reference to the new interconnectors to Spain and France and the many planned new interconnectors. For a hypothetical scenario, which will cover a few years, we are contributing. There is no such thing as just storing LNG; we use it. Six times a year one uses it. Once one has that facility, they are burning LNG off every year and six times a year they refill it. Even if it did exist, it would not actually be a reserve of energy that we could tap into because every two months it relies on new shipments. We see what happens to shipments of LNG in a time of crisis and energy crisis. It frankly does not deliver in terms of security. It is not a reserve that we have there. It intensifies what we know is the real risk.
When we talk about climate and its impacts, we can talk about the past decade as the warmest on record. It is just like the warmest year and the warmest year in a row. There has been intense loss of species. A total of 45.8 million displaced due to weather related disasters in 2024 alone and 75% of the world's poorest, who are reliant on agriculture, are being impacted by climate change. A total of 189 million people potentially pushed into hunger. That is the threat. If the hottest years do not move us, perhaps the reversal of the gulf stream, which is now being talked about as a very terrible threat and possibility, should focus our minds. These are real statistically probable threats that we are facing. Why would we contribute to intensifying those risks for everybody? It is frankly unjustifiable.
We heard a lot about energy security being quoted then. When private wires were discussed, we heard from everybody that 31% of our energy is now going to large energy users and 22% is just going to data centres. The 22% on data centres is what is driving the private wires legislation. One of the real problems with the legislation, which was identified when we examined it at the committee, if it does not include the usual obligations we would have in terms of if there was an energy crisis with transmission measures and demand side measures, then we see the increased demand from data centres and other energy users absorbing the renewables that have been coming on stream. Instead of that new renewable on stream contributing to decarbonising our economy, system and everything else, it is being absorbed by new uses. If we have private wires - those renewables that are going to particular clients - it looks like that they will not be given an obligation.
I asked the Department because there are step-in rights for the State in certain safety and other circumstances. I asked the officials if it they considered that energy security should be a situation where the State can say, "That wind farm powering Amazon or whoever else's giant data centre at this point if we do have interconnectors cut, we need to be able to access that for the grid." They said they had not considered energy security. There is a big lecture on energy security for LNG but not a consideration of how private wires are going to intersect with our energy security issues and threats, even though that we know that up to one third of the energy users in the State may be using them and may be absorbing a huge amount of our renewable capacity.
On energy security, there are so many more issues to focus on. I wish to focus on at the intimate level energy security of households. We still have an approach that tries to encourage the choice of retrofitting and trying to give it the plans and the loans. This is a point where if the State is serious, we need to be stepping in. There are 20,000 people on the warmer homes scheme waiting list. There should not be a waiting list of 20,000 people for the scheme. There should not be public buildings still piloting different Departments, making a business case and piloting this building and that building that they might upgrade. Any building that the State has the keys to, access to or can retrofit should be retrofitted. If that requires a State retrofitting agency, which is literally delivering, then that is the thing. This is where the public comes in. There was an appeal on public batteries. That was a good point in relation to that. If that is something to be looked at, let us have State infrastructure that is going to deliver, be it retrofitting or around battery storage locally.
There was a reference to the 80% renewable supply. We do not have those figures. There is no guarantee at all of how much renewable versus electric will be happening with these new private wire developments. That is a real concern. They should be moving ahead and having no fossil fuels rather than having a further fossil fuel infrastructure in back-up generators existing across the country. It is something that we cannot afford from a climate perspective. It also creates a jeopardy.
Gareth Scahill (Fine Gael)
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I thank the Minister of State for coming in. Energy security is something we heard all the previous speakers talk about. We generated 33% of our electricity demand last year from wind energy, which is welcome. It shows that some of these schemes are working at the moment. We are familiar with travelling around the country and seeing a lot of windfarms with propellers not moving at any given time. The reason for that is the lack of capacity in our grid. This country spent a lot of money in the 1970s and 1980s investing in our grid. We had a very good grid infrastructure in the 1990s for the development of our country. However, the grid infrastructure is creaking at the moment. It was suggested earlier that approximately 13% to 15% of our electricity capacity is being lost annually through lack of capacity to take from wind energy at the moment. I welcome that the Minister said he has provided €3.5 billion in equity for offshore and onshore grid capacity. That is the priority. It is not going to be possible to do a whole lot with all these other schemes unless we fast track the grid capacity and that investment.
I welcome the Tonn Nua campaign down in the south-east. There is 900 MW of capacity going to be generated offshore there. There are four other sites off the south-east coast that will be contracted out at a later stage. If we are hell-bent on offshore and generating our offshore capacity, the only port in Ireland at the moment capable of dealing with that is Belfast. In the next couple of months, Cork Port will introduce additional infrastructure and capacity but it will only be able to deal with one project at a time. The ports cannot invest in any of the offshore projects or in their own expansion until planning is approved. I would love to hear the Minister of State's thoughts on the offshore and ports investment.
Nessa Cosgrove (Labour)
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I welcome Deputy Joe Neville and his guests to the Gallery. He is very welcome. Tá fáilte roimhe.
Cathal Byrne (Fine Gael)
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I welcome the opportunity to contribute to this debate. I acknowledge the enormous concerns that ordinary people are having around the cost of energy, the price of fuel and the difficulties that they are having, including working people getting to work and making ends meet and the challenges that they are posing. The reality here is that as a country we have to make a concerted effort to make the transition away from fossil fuel use, particularly given the global instability that we have at the moment. My own county of Wexford is to the forefront in that regard. As previously mentioned, the Tonn Nua site off the coast of Wexford has enormous potential for offshore renewable energy. To facilitate that site and maximise its potential, there has to be continued investment in the port in Rosslare. We have to see the Rosslare to Oilgate motorway being finally delivered. These are key infrastructure projects that are going to have a direct impact on the ability of Wexford to be to the forefront of that given our unique position with the Tonn Nua site and the opportunities that present there.I recently met with residents and members of the Gusserane Community Action Group. It is a community-based group that has concerns about large-scale solar farms being developed in the area, particularly around Gusserane, Ballycullane, Newbawn and the Campile-Clongeen area, where there are plans for 300 acres of solar farm use. While I am in favour of solar farms, the group has asked me to voice some of its concerns around the fact this is some of the best agricultural land in County Wexford, as well as the lack of consultation between the developer and the local residents in the area and a general sense we are having now of industrial levels of solar farm use being rolled out in rural Ireland. The group has reiterated the call for the Minister and the Department to publish clear land use guidelines. I continue to advocate for that so we have a clear sense of direction as to where this is going. I hope this is something the Minister of State and the Department can do into the future.
Timmy Dooley (Clare, Fianna Fail)
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I thank all the Senators who contributed to this important debate. It is particularly timely because of the context in which we find this discussion. I have noticed a better understanding by our citizens when we talk about decarbonisation. For far too long, the conversation was just about the impact on the environment. It was not looked at more broadly in terms of the position that virtually all Senators reflected on, which is that this is about energy security and that we are not in control of our own at a time when we have other opportunities. It is important to look at that.
Senator Clifford-Lee raised some issues around assisting people in the retrofit programmes and that maybe we should do more there. The Department has done quite a lot, but of course it is important we always retain under review the supports that are there to move people away from the need for fossil fuels, or energy generally in their homes, and to reduce the dependence on that by making homes airtight. That is something the Minister, Deputy O'Brien, is looking at.
The Senator also raised the issue of not closing the door on nuclear. We have to have a general debate about all aspects of energy. However, I have reflected both here and in the other House my concerns about what I am seeing around the country in terms of the resistance to wind turbines in communities and the difficulty in getting social licence, or getting people to accept the principle of even the smaller units being talked about for nuclear energy. The Government does not have any immediate decisions to make in that regard. That would only come about after a period of much consultation, where it would become clear that the public were in a position to accept it. Frankly, I do not feel we are there but we should always retain the conversation and discuss it because over time, people's attitudes certainly change.
Senator Duffy raised the issue of the Inishkea West gas project. The Department will come back to the Senator directly on where that is at. Speaking more generally, our ambition is to get to net zero by 2050. I will talk in general terms about what Senator Collins and others talked about - the use of fossil fuels in the intervening period. It was always the desire of government, regardless of its hue, that we would recognise fossil fuels and gas in particular as a transition fuel. From that perspective, we also have to maintain economic growth and remain along the trajectory of other countries in being attractive. To the Acting Chair's point as well, in attempting to get there we have got to increase our generation of clean renewables, which we are doing. I will speak to our efforts there.
A number of projects are already going through planning. They were referred to as the phase 1 projects, which the Minister, Deputy O'Brien, may have reflected on, together with the Tonn Nua site that was talked about. By 2031 or 2032, we hope to have those energised, which would deliver 5 GW offshore. We currently have 8 GW of renewable onshore. To bring an additional 5 GW onto the grid within the next six or seven years would be fantastic.
We are currently working on a national DMAP which will see completion by 2027. I take Senator Collins's point, which is close to my own heart in that regional aspect, that we could do it more quickly. However, we have been trying to do it in consultation with communities so that we do not run too far ahead and find ourselves in the courts. In fairness, the experience we have developed from the Tonn Nua site was to take the time, do the engagement and try to get to a situation where you do not get that judicial review situation, which delays everything. We expect that will identify an additional 15 GW of electricity generation by 2040.
The argument being made about data centres is well-meant from the perspective of Senator Cosgrove and others, but we have a responsibility to maintain economic growth and activity. To some extent, there is this notion that somehow data centres are not big employment opportunities, but they are in the construction phase. Maybe from an operational level, the number of employees by comparison to the size and scale of the buildings is relatively small, but what is critical about them is that we are moving into the technology sector and have made great advances. We are recognised globally as a centre of excellence for the tech, pharma and medical devices sectors. If we let other countries steal a march on us on data centres, we will lose the downstream investment that is integrated and integral to the future. It would be much easier for us to take a different approach, but it is the right approach.
There will be challenges in the intervening period and there are on the grid because there are some areas that are constrained. I do not accept, however, that data centres get ahead of housing. I know through my engagement with EirGrid that it is very conscious of proposed housing developments and other large energy usage requirements that are there. I would like to think we have moved ahead with the grid and that we are in a position to bring more data centres on. Ireland is now seen in a negative light internationally. Having had a strong base from the start, we are now fighting a rear-guard action to retain Ireland as a centre of excellence for data centres.
It is not just about the data centres. There is a misconception by some that somehow data centres only house photographs, videos and reels, which is a nuisance to all. However, in truth, it is about the maintenance of data in a cloud environment. Companies that would have always ordinarily had racks of computers in their offices do not have that now. By consolidating them under the one roof of a data centre, it actually reduces the demand on electricity; there are statistics on it that I can get. It is a positive story but it is a big challenge for us to manage it. That is why the Government and others have reflected on it. I think the Minister, Deputy O'Brien, talked about this, but we are putting in €3.5 billion of equity into EirGrid and ESB Networks which will allow them to borrow at relatively low interest rates and spend about €19 billion on grid infrastructure upgrades between now and 2030.
We are bringing forward new policies and announcements on where our 400 kV lines will go around the country. We will be identifying areas for development and growth, as well as where the electricity will come ashore. The new large energy user action plan, LEAP, project will identify areas suitable for large energy users to locate in green tech parks. We will be trying to identify those locations closer to where the energy comes ashore from those 20 GW I talked about. That is the kind of joined-up thinking we are doing now in planning ahead. I accept it is challenging to get through from here to 2030 in managing all the demand that is there.
Senator Byrne talked about the cost of fuel and Senator Collins talked about the port of Limerick. I spoke at an event yesterday with the Limerick Chamber of Commerce about the good work the port is doing. There is a port policy to be announced shortly which will play into that. Senator Byrne is right that Cork is now moving ahead. It has €130 million or €140 million in investment and Ann Doherty, the chief executive down there, is doing a great job in driving that. We expect to see that being able to meet the demand. For sure, Rosslare will follow. It has a project in place and many of the ports around there are looking at potential opportunities, if not in the major development side, then in the operation and maintenance work that will form part of it afterwards.
Senator Duffy talked about the battery storage piece. We have got to ensure the grid is resilient and when certain breaks come that energy can be supplied energy from other areas through that lattice approach it has. However, battery storage is very important, and we want to do more.On the negativity towards the use of gas in particular, Senator Higgins spoke about energy security in the Shannon Estuary, which is such an important part of the Government's agenda. We have to drive ahead with that. It is a short-term measure. We are not investing in hard-construction infrastructure. It is floating and it can be got rid of when we do not need it. I met earlier with a group comprising the ESB, Bord Gáis and a private developer, which have come together under the banner of Kestrel. It is looking at providing a storage facility in the old Kinsale Head gas field, or in one of the chambers there, that would give us resilience of about 90 days of gas storage. In the short term it would be natural gas but it would have the capacity to move towards hydrogen as hydrogen production comes on, which will be partly through electrolysers and in using the unused wind when we have all of that coming on board. Our transition is using gas, which has the least negative impact in the short term, as we move towards more renewables. However, all the advice we are getting indicates we will still need some green molecules to power our economy to get to net zero by 2050. There will be a chunk that will be needed for storage, for electricity when the sun is not shining and when the wind is not blowing, and also to power some heavy-goods vehicles. We believe at this stage that that is most likely to be hydrogen. That is where we ultimately want to get to. Under the proposal for a project off Kinsale, that storage could then flip to storing hydrogen when we reach that point.
I am sorry I did not get to cover all the points but I am happy to come back at any stage, either through a Topical Issue or any other opportunity we have for statements or whatever else, to address this really important issue. I recognise that all the Senators here have been thoughtful in their presentations and comments. It is good to see that there is a collegiality in raising the really important issues that are a challenge to Government, but really importantly, to citizens as well. I thank them for that.