John Paul Phelan (Carlow-Kilkenny, Fine Gael)
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63. To ask the Minister for Communications, Climate Action and Environment if his Department is liaising with the Department of Enterprise, Trade and Employment and IDA Ireland to ensure that business energy costs can be reduced through the EU reform of the electricity market; and if he will make a statement on the matter. [11901/23]

Eamon Ryan (Dublin Bay South, Green Party)
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The European Commission launched a public consultation into electricity market reform on 23rd January. Ireland submitted a position paper on the 13th February which can be accessed at

(www.gov.ie/en/publication/9d196-european-commission-public-consultation-on-reform-of-electricity-market-to-support-a-clean-and-affordable-energy-transition/).

While we are supportive of reform, we should not depart from the competitive principles of our market design, which would undermine the cost-effective decarbonisation of our energy system, jeopardize affordability and risk security of supply. Nevertheless, it is appropriate to look at the market design with a view to improving it particularly in context of increased renewables. We need to strike the right balance in relation to investment opportunities to accommodate increasing renewable penetration, as well as flexibility signals for storage, demand side response and back up generation technologies. It is critical that market design and energy market contracts operate so that consumers receive the full direct benefit of low-cost renewable energy sources such as solar and wind. The Commission has indicated that it will publish a proposal around 16th March, which we welcome.

In the three week time-frame provided for responding to the consultation, the Department engaged widely with a range of stakeholders including industry and the Department of Enterprise, Trade and Employment through its participation in the Energy Security Emergency Group. As this reform programme develops, we intend to continue to engage widely with stakeholders.