Written Answers Nos. 56-70
56. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications the sector to which the emissions from the backup generation of data centres will be allocated for the purposes of carbon budgeting; and if he will make a statement on the matter. [63177/22]
View answer57. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications the total generation capacity for use by data centres in the event that they cannot access the grid; and if he will make a statement on the matter. [63178/22]
View answer122. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications the steps he will take to ensure confirmed data centre connections will not lock in higher gas demand and increase emissions; and if he will make a statement on the matter. [1675/23]
View answerI propose to take Questions Nos. 56, 57 and 122 together.
In July of 2022, the Government published a new statement on the role of data centres in Ireland’s enterprise strategy. The statement addresses sustainable data centre development to align with Ireland’s renewable energy targets, security of supply, sectoral green house gas emissions, and climate priorities. The goal of this policy is to ensure the positive benefits for sustainability are maximised and that digital technologies are used in a sustainable manner to ensure the energy and circular economy challenges from digitalisation are aligned with our climate objectives. My Department is working regularly across relevant agencies and government departments to support the effective implementation of this policy.
The recently published Climate Action Plan 2023 sets out a plan to implement the carbon budgets and sectoral emissions ceilings along with a roadmap for taking decisive action to halve our emissions by 2030 and reach net zero no later than 2050, as was committed to in the Programme for Government. The plan sets out measures and actions to ensure electricity demand is managed in line with our climate objectives. Flexible and decarbonised demand from large energy users, such as data centres, is critical to protecting security of supply and ensuring consistency with the binding carbon budgets. This work will include a review into the current gas connection policies for new Large Energy Users.
The Commission for Regulation of Utilities (CRU) published on 23 November 2021 the “CRU Direction to the System Operators related to Data Centre grid connection processing” (CRU/21/124). This decision requires data centre connections to have on-site generation (and/or battery storage) that is sufficient to meet their own demand and, to assist in full decarbonisation of the power system; this generation should also be capable of running on renewably sourced fuels (such as renewable gas or hydrogen) when supplies become more readily available.
The back-up generation of individual data centres is not assessed by the Department. The use of back-up generating units is subject to planning and environmental licensing on a site by site basis. However, the EPA do publish licence information and have a register of Medium Combustion Plant information on their website at: www.epa.ie/mcp/. The emissions generated from on-site power generation will apply to the industry sector for the purposes of carbon budgeting.
58. Deputy Michael Collins asked the Minister for the Environment, Climate and Communications if he will outline the evaluation process leading to the decision on the solidarity fund announced by the Government regarding the implementation of Council Regulation No. 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices (details supplied); if he will specifically set out all of the data related to the determination of the solidarity contribution rate of this regulation; and if he will make a statement on the matter. [63196/22]
View answer59. Deputy Michael Collins asked the Minister for the Environment, Climate and Communications if he will set out the solidarity tax contribution rates set by all other member states within the European Union to date on the implementation of Council Regulation No. 2022/1854 of 6 October 2022 to address high energy prices (details supplied); if losses are deductible against those rates; and if he will make a statement on the matter. [63197/22]
View answerI propose to take Questions Nos. 58 and 59 together.
Council Regulation (EU) 2022/1854 on an emergency intervention to address high energy prices came into force in October 2022. This Regulation seeks to address windfall gains in the energy sector through measures, including a temporary solidarity contribution based on increases in taxable profits in the fossil fuel production and refining sectors.
The Council Regulation sets out the temporary solidarity contribution which shall apply on taxable profits which are more than 20% above the average for a baseline period from 2018 to 2021. The rate at which the temporary solidarity contribution is to be applied is a matter for each Member State but must be at least 33%.
On 22 November 2022, the Government decided that the temporary solidarity contribution on taxable profits which are more than 20% above the baseline period from 2018 to 2021 will be subject to a rate of 75%, losses from previous years will not be taken into account in the calculation of the taxable profits and the temporary solidarity contribution will apply to 2022 and 2023.
A key factor in considering the appropriate rate was the effective rate that would apply. Only taxable profits which are more than 20% above the baseline will be subject to the temporary solidarity contribution. This will lead to an effective rate of 0% for increases in taxable profits up to 20%, an effective rate of 50% for increases in taxable profits of 60% and an effective rate of 60% where taxable profits have doubled. This means that it is only where taxable profits have increased by more than 60% that the State would collect more of the increase than the companies would retain.
The rate of 75% is considered appropriate as it ensures that where significant windfall gains are made (e.g a doubling of profits) then over half of the gain would be collected by the State with lower proportions collected where the windfall gain has not been as significant.
As the process of implementing the Council Regulation is still underway, a comprehensive list of the decisions made by each Member State, including the rate to be applied, is not available at this time.
Legislation will be required to implement this Council Regulation and my Department is continuing to work with other Departments and stakeholders in developing this legislation.
60. Deputy Michael Collins asked the Minister for the Environment, Climate and Communications the status of the Government's review of energy security; if he will outline any plans and processes in place for the matter to be considered by the Government, Members of the Houses of the Oireachtas, industry or members of the public following the consultation process; and if he will make a statement on the matter. [63198/22]
View answerMy Department published a consultation seeking input of all interested parties on a review of the energy security of Ireland’s gas and electricity systems on 19 September 2022. The consultation document was accompanied by a technical analysis carried out by Cambridge Economic Policy Associates. The deadline for submissions was 28 October 2022 and 457 submissions from individuals and organisations have been received. All responses and submissions received as part of the consultation are being examined and given careful consideration.
It is my intention to take a number of recommendations on the energy security of our electricity and gas systems to Government once the current review process is complete.
61. Deputy Michael Collins asked the Minister for the Environment, Climate and Communications the number of submissions received on the Government's review on energy security; when his Department intends to publish the submissions made to the Government; and if he will make a statement on the matter. [63199/22]
View answerMy Department published a consultation on a review of the energy security of Ireland’s gas and electricity systems on 19 September 2022. The consultation document was accompanied by a technical analysis carried out by Cambridge Economic Policy Associates. The deadline for submissions was 28 October 2022 and 457 submissions from individuals and organisations have been received. All responses and submissions received as part of the consultation are being examined and given careful consideration.
It is my intention to publish the consultation responses alongside the outcome of the review, once agreed by Government.
62. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the number of homes retrofitted under each scheme in 2022, in tabular form; and if he will make a statement on the matter. [63237/22]
View answer63. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the number of households that applied for solar PV grants in 2022; and if he will make a statement on the matter. [63238/22]
View answer65. Deputy Brian Stanley asked the Minister for the Environment, Climate and Communications the total number of homes that have been deep retrofitted since 1 January 2022. [63288/22]
View answer66. Deputy Brian Stanley asked the Minister for the Environment, Climate and Communications the estimated number of homes that still require wall and roof insulation. [63289/22]
View answerI propose to take Questions Nos. 62, 63, 65 and 66 together.
The National Retrofit Plan, published in November 2021 sets out the Government's approach to achieving the Climate Action Plan targets of upgrading the equivalent of 500,000 homes to a Building Energy Rating of B2 by the end of 2030.
A key step in implementing the Plan took place in February last year, when the Government launched a package of supports to make it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills. Free upgrades are available for households at risk of energy poverty under the Better Energy Warmer Homes Scheme.
In recognition of the importance of low-cost but high-impact measures in reducing household energy demand, a special enhanced grant rate of 80% was introduced specifically for attic insulation and cavity wall insulation for all households. This is available to all homeowners across all relevant schemes to urgently reduce energy use and cost as part of the Government’s response to the current exceptionally high energy prices.
Demand across the SEAI residential and community energy upgrade schemes (including Solar PV) was exceptionally high in 2022. Preliminary figures from SEAI indicate that, as of end-December:
- Almost 49,700 applications for support were submitted to SEAI in 2022, representing a 150% increase on 2021 figures.
- Over 27,700 home energy upgrades were supported in 2022, exceeding the target of 26,940. This represents a 79% increase in outputs year on year. Final details on the outputs, including across the schemes, will be available later this month.
- Of these, over 9,000 upgrades were to a post works Building Energy Rating (BER) of B2 or better, which is double the B2 upgrades supported in 2021.
Among the home energy upgrades completed, there were over 21,500 insulation measures installed across the various schemes. These measures comprised cavity wall, internal wall, external wall and attic insulation measures. The SEAI has estimated that there could be of the order of 500,000 homes that have attic insulation with a thickness of less than 120mm (4-5 inches) of mineral wool and that approximately 162,000 homes have cavity wall construction that could benefit from insulation.
The Solar PV grant scheme under the Micro-generation Support Scheme (MSS) came into operation in February 2022 and built on the success of the previous pilot version of the grant scheme. In 2022, SEAI saw application levels rise sharply to over 16,800 which was more than double the application levels seen in 2021.
My Department is working with SEAI to build on this strong performance across the schemes with a robust pipeline of activity carried forward from 2022 into 2023.
64. Deputy Jennifer Carroll MacNeill asked the Minister for the Environment, Climate and Communications if a universal rate will be decided on for microgeneration customers who have signed up to sell power from solar panels back to the national grid; if a date for these payments has been set, given that it was originally due to be in December 2021; and if he will make a statement on the matter. [63254/22]
View answerOn 15th February of 2022 I signed the Regulations that create an obligation on all suppliers to offer the Clean Export Guarantee (CEG) tariff to new and existing micro-and small-scale generators so that they will receive payment for excess renewable electricity they export to the grid, reflective of the market value.
In December 2021 the Commission for Regulation of Utilities (CRU) published a Decision on an interim enabling framework for the CEG which outlines the arrangements for its implementation, including eligibility criteria and remuneration methodology (CRU21131-Interim-Clean-Export-Guarantee-Decision-Paper.pdf). As part of this, the CRU decided that suppliers would set their individual CEG tariffs on a competitive market basis. Payments will be backdated to the date of eligibility or the 15th February 2022 (the date the regulations were enacted), whichever is the latest.
The CRU has asked all suppliers to communicate their decision to their customers on when CEG payments will be made at the earliest opportunity. I am aware that suppliers have now advertised their rates, which range from €13.5c/kWh up to €21c/kW. The CRU advises customers to contact their supplier to obtain information on their suppliers' CEG tariff arrangements. I am also aware that the CRU intends to review the CEG framework earlier in 2023 to ensure that remuneration rates are reflective of the current market.
CRU provides a dedicated email address for Oireachtas members, which enables them raise questions on general energy regulatory matters to CRU at oireachtas@cru.ie for timely direct reply.
67. Deputy Richard Boyd Barrett asked the Minister for the Environment, Climate and Communications further to Parliamentary Question No. 173 of 29 November 2022, when a response will issue in relation to the protections that are in place for district heating customers who prepay for gas in order to prevent any disconnection of service if they cannot pay their bills this winter; and if he will make a statement on the matter. [63291/22]
View answer89. Deputy Paul Kehoe asked the Minister for the Environment, Climate and Communications the way district energy schemes are regulated; the rationale for not doing so under the Commission for Regulation of Utilities; the reason residential customers are then billed as commercial customers, given that part of the rationale for a just transition is energy and cost efficiency; and if he will make a statement on the matter. [63937/22]
View answerI propose to take Questions Nos. 67 and 89 together.
District heating schemes are large-scale systems that are supplied by one or several centralised or decentralised heat sources, with multiple buildings and multiple customers. Group heating schemes are smaller-scale systems that supply single buildings or complexes. In relation to group heating schemes, it is the heat supplier that purchases the fuel, predominantly gas in current systems. Therefore, a commercial tariff is applied due to the scale of the purchase.
The Government is committed to expansion of district heating making use of renewable and waste energy sources, as this technology can contribute to diversification of fuel supply for heat, decarbonisation of the heat sector, and security of supply.
My Department is working to develop an appropriate regulatory framework in order to ensure a sound basis for the expansion of district heating. Under S.I. 350/2022, the Commission for Regulation of Utilities (CRU) has been appointed as Regulator for district heating networks and will be responsible for regulation of the sector going forward. The regulatory needs of the sector, to include group and communal heating schemes, require further, detailed examination, and this is being undertaken by the CRU as a matter of priority.
To assist in identifying alternative heat sources for group heating schemes in particular, the Sustainable Energy Authority of Ireland has initiated a feasibility study to examine the technical potential of moving schemes fuelled by natural gas to a renewable energy source. It is anticipated that initial results will be available early this year.
While I have no function in the day-to-day business operations of individual companies, in order to help alleviate the impact of the rising cost of living on households Government has put in place a series of measures, with funding of €2.4 billion available. A further package of once off measures worth €2.5 billion was announced in Budget 2023, including the Electricity Cost Emergency Benefit Scheme II which is being applied to domestic electricity accounts as a universal support to all households.In addition to supports for energy costs such as the Household Benefits Package and the Fuel Allowance, people can apply to the Community Welfare Service (CWS) for assistance with essential costs that they cannot reasonably be expected to meet from their income. Such payments are subject to income tests and an assessment of need.
The Energy Poverty Action Plan also sets out the actions the Government has put in place to tackle energy poverty and help people to pay their energy bills as part of the wider cost of living crisis.
68. Deputy Mark Ward asked the Minister for the Environment, Climate and Communications the way residents of an area (details supplied) can receive their energy credit through South Dublin County Council; if they will receive the first payment from April; when these payments will be received; if a priority can be made to finalise this process before the end of the year; and if he will make a statement on the matter. [63328/22]
View answerGovernment is acutely aware of the impact that the recent increases in global energy prices is having on households and throughout 2022 introduced a €2.4 billion package of supports and as part of Budget 2023 has introduced a package of once off measures worth €2.5 billion. This includes a new Electricity Cost Emergency Benefit Scheme through which €550.47 (exclusive of VAT) is being credited to each domestic electricity account in three payments of €183.49 (exclusive of VAT). The first payment has been made with the second due in the January/February billing cycle and the final payment in March/April. The estimated cost of this scheme for over 2 million domestic electricity accounts is €1.211 billion. This is in addition to the first Electricity Costs Benefit Scheme which cost €377 million.
The payment will be applied to domestic electricity accounts which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2). This includes?accounts with pre-pay meters. The scheme uses the single identifier of the Meter Point Registration Number (MPRN)?to ensure it can be administered automatically and without an application. The advantage of the scheme is that it uses the Meter Point Registration Number (MPRN) to identify all domestic electricity accounts and ensure payments are made directly and automatically to those accounts without using means testing, application or approval. Despite this advantage, the Scheme does have limitations. As a result there are cohorts that did not receive the payment. A particular cohort, identified since the first Scheme, includes a number of traveller households who use Local Authority accommodations and who were unable to access the credit. In this situation, the MPRN is registered to the Local Authority and supplies multiple households. This group is identifiable through their use of Local Authority accommodation.
In approving the second Electricity Costs Emergency Benefit Scheme, Government also approved funding for this group, including provision for payment to be made to these households in respect of the first scheme. My Department has worked with the County and City Management Association (CCMA) on this matter and provided the funds to individual Local Authorities to enable them to make the necessary payments to households in their areas. The allocation of these funds to Traveller households is a matter a matter for each Local Authority.
69. Deputy Christopher O'Sullivan asked the Minister for the Environment, Climate and Communications if Ireland has a policy on tulip flower wind turbines; and if he will make a statement on the matter. [63335/22]
View answerMy Department has developed a number of schemes to support the production of renewable energy to deliver on Ireland’s electricity targets under the Climate Action Plan. These schemes include the Renewable Energy Renewable Electricity Support Scheme (RESS) and the Microgeneration Support Scheme (MSS), as well as the Small-Scale Generation Support Scheme (SSG) which is under design and is expected to become available later this year
Each scheme supports a range of established technologies, and eligibility criteria are kept under review to take account of new technologies as they emerge and become viable. The use of vertical-axis wind turbines, which is an emerging technology, would be a matter for each project promoter.
The Sustainable Energy Authority of Ireland (SEAI) deals specifically with innovative technologies and runs a Wind Technology Collaboration Programme which specialises in innovations in wind generation. SEAI can be contacted regarding any specific recommendations from international experience as to how this technology can be deployed in Ireland.
70. Deputy Richard Boyd Barrett asked the Minister for the Environment, Climate and Communications if he plans to offer supports to SMEs to help deal with the energy crisis and rising costs of commercial tariffs; and if he will make a statement on the matter. [63348/22]
View answerThe Government is acutely aware of the difficulties businesses and commercial organisations are facing with respect to the current global energy crisis and the resultant high electricity prices. As a consequence, my Department has worked intensively with the Department of Finance and Revenue to develop the Temporary Business Energy Support Scheme (TBESS), in order to support businesses through this difficult period.
TBESS is targeted at businesses that experience a significant increase (50% increase in energy bills ex VAT year-on-year) in their electricity and/or gas costs over the winter period. Once this eligibility criterion is met, support will be provided for 40% of the increase in the bill amount. This is subject to a monthly cap.
A business can make a claim under the scheme if it:
- is tax compliant
- carries on a Case I trade or Case II profession. This includes charities and approved sporting bodies that carry on certain activities; and
- has experienced a significant increase of 50% or more in its electricity and/or natural gas average unit price.
Qualifying businesses can claim for 40% of the increases in their energy bills. The increase in energy bills must be between the ‘claim period’ and the ‘reference period’. A claim period is a calendar month from September 2022 to February 2023. A reference period is the corresponding calendar month in the previous year. For example, September 2021 is the reference period for the September 2022 claim period.
The Scheme is administered by the Revenue Commissioners and operates on a self-assessment basis. Further information can be found at: Temporary Business Energy Support Scheme (TBESS) (revenue.ie).
