Darren O'Rourke (Meath East, Sinn Fein)
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157. To ask the Minister for Communications, Climate Action and Environment to provide an update on how the cap on market revenues will be spent; how it will provide relief to households facing high energy costs; how it will be used to target energy poverty; if it will be targeted at large energy users; and if he will make a statement on the matter. [38670/23]

Eamon Ryan (Dublin Bay South, Green Party)
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On the 31st August, the Government published the Energy (Windfall gains in the Energy Sector)(Cap on Market Revenues) Bill 2023. The bill aims to cap the revenues of energy companies, which have experienced large profits in recent times, and provide for the re-distribution of that money back to consumers.

The legal basis for this Bill is provided for in Council Regulation (EU) 2022/1854 which represents an emergency intervention to address high energy prices. Article 10 of the Council Regulation states that surplus revenues collected through the Market Cap must be distributed in accordance with measures to support final electricity customers in a transparent and proportionate manner.

The Council Regulation details potential suitable measures such as financial compensation and direct transfers to final electricity consumers, lowering the cost of purchasing electricity for energy consumers and promoting investments by final energy consumers into de-carbonisation technologies, renewables and energy efficiency investments.

This Article is provided for in Section 28 of the Bill which outlines the arrangement of schemes which can be used for the disbursement of proceeds from the Market Cap Fund. The proceeds from the cap on market revenues will be retained by the Commission for Regulation of Utilities (or EirGrid on their behalf) to be used to support final electricity consumers in line with Article 10 of the Regulation.

Darren O'Rourke (Meath East, Sinn Fein)
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158. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the Government’s plans to develop energy storage as part of Ireland’s 2030 targets; and if he will make a statement on the matter. [38671/23]

Eamon Ryan (Dublin Bay South, Green Party)
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Electricity storage plays a critical role in providing flexibility to the electricity system by facilitating the integration of renewable generation, supporting the grid, and shifting electricity to the time when it is most needed. We have already seen tremendous progress in terms of the deployment of electricity storage in Ireland, with more than 600MW of batteries currently active on the system and 292 MW of pumped hydro storage (Turlough Hill).

Under the Climate Action Plan 2023, my Department has committed to developing an Electricity Storage Policy Framework by Q3 2023. To help inform the development of the final framework, my Department held a public consultation which closed on the 27th January. As part of the consultation process, my Department also ran an industry stakeholder event to further discuss the key issues/questions raised within the consultation.

The responses to the public consultation have now been analysed and a Summary Report was published in May. My Department is now in the process of preparing the final Framework and is engaging closely with key stakeholders including Government Departments, State agencies and industry experts to that end.

Darren O'Rourke (Meath East, Sinn Fein)
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160. To ask the Minister for Communications, Climate Action and Environment if there are any plans to develop underwater pumped hydro energy storage; and if he will make a statement on the matter. [38706/23]

Eamon Ryan (Dublin Bay South, Green Party)
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Electricity storage plays a critical role in providing flexibility to the electricity system by facilitating the integration of renewable generation, supporting the grid, and shifting electricity to the time when it is most needed. We have already seen tremendous progress in terms of the deployment of electricity storage in Ireland, with more than 600MW of batteries currently active on the system and 292 MW of pumped hydro storage (Turlough Hill).

To further support energy storage development my Department is currently in the process of developing a national Electricity Storage Policy Framework that aligns with our renewable energy ambitions, security of supply, and flexibility policy drivers. The Commission for Regulation of Utilities is also reviewing the regulatory treatment of storage, including licensing, charging and market incentives.

While my Department does not develop or support individual energy storage projects, such as novel underwater pumped storage systems, the potential need for the introduction of R&D opportunities and/or a specific procurement framework for long-duration storage is something that is being considered as part of the forthcoming storage policy framework.

Additionally, Enterprise Ireland, the state agency responsible for the development and growth of Irish enterprises, provides various funding opportunities for new ventures, including those that support the energy transition.