Cost of Renewables Taskforce Bill 2022: First Stage

Deputy Darren O'Rourke

I move:

That leave be granted to introduce a Bill entitled an Act to require the Minister for the Environment, Climate and Communications to establish a cross-departmental taskforce to examine the cost of producing renewable energy in Ireland; to provide for this taskforce to consult with stakeholders and deliver within six months policy recommendations to the Minister on ways to reduce the cost of producing renewable energy per megawatt-hour.

I am sharing time with Deputy Cronin. I welcome the opportunity to introduce the Cost of Renewables Taskforce Bill 2022 to the Dáil today. The Bill is important and would have significant implications for the cost of electricity for people. Its simple aim is to quickly establish a cross-departmental taskforce to examine the high costs of producing renewable energy here and to bring forward recommendations on ways to reduce this cost per megawatt hour. As we strive to reach 80% renewable energy generation by 2030, it is essential that the cost of producing this green electricity comes down. In our latest renewable electricity support scheme, RESS, auction wind energy cleared at almost €98 per megawatt hour. In other European countries prices are in the €50 range and in Spain it is even approximately €20 per megawatt hour. Instead of coming down towards the European average, the costs in Ireland have gone up in the latest RESS auction. We need to reverse this trend and cut the cost of producing renewable energy here both to reduce household bills and to ensure Ireland is competitive to export wind energy and green hydrogen to Europe.

Delays in the planning system, the design of the auctions, commercial rates and grid connection costs are all pushing up the price of power in Ireland. The aim of this taskforce is to identify all of these contributing factors and to bring forward recommendations looking at international best practice on how to reduce the cost of producing green energy per megawatt hour.

Importantly, this Bill also mandates the taskforce to recommend mechanisms to ensure any savings made on the cost of producing renewable energy are passed onto consumers. Our transition to a zero-carbon energy system must benefit the climate and all of our citizens.

Deputy Réada Cronin

I am glad to co-present the Cost of Renewables Taskforce Bill 2022 alongside my comrade, an Teachta Darren O’Rourke, especially at a time when many of our citizens are worried about keeping warm and about the cost of heating, as are businesses across the island. Our people need the hope that comes from good, practical action, like the action we are proposing in this Bill. Renewable energy is vital as we work now to protect humanity on this planet, which is our only home.

Unfortunately, in Ireland, the cost of producing renewable energy per megawatt-hour is much too high. In fact, it is one of the highest in Europe. Therefore, we need to examine immediately why this is the case and address it as quickly and fully as possible. There is no time or money to waste.

The Bill involves a task force to make this happen. This task force will work across Departments and include stakeholders within the industry, consumer organisations and advocates to combat energy poverty. Crucially, its operation is time critical. Within six months, it will deliver its policy recommendations to the Minister for the Environment, Climate and Communications to reduce the cost of producing renewable energy per megawatt-hour. Since renewable energy is the way to go, the cost of that energy must be sustainable for the consumer of electricity. Our Bill recommends mechanisms to ensure the savings made on the cost of producing renewable energy will be passed on to users. That cost is also central in our capacity to be competitive in the market and to export electricity from renewables successfully and profitably.

In politics, there is sometimes too much talk and too little action while the costs for our citizens rise and our planet burns and drowns. A just transition must be to the fore and it is central to Sinn Féin's green policy. The task force enabled by the Bill will allow for proper action to be taken immediately to address the cost, which is fundamental to production, consumption and export. Aspiration is not enough, and while there is major public support for renewables, the cost problem cannot be addressed by goodwill alone. The Bill creates a focus and will allow for this problem to be addressed quickly and comprehensively.

Dáil Éireann díospóireacht -
Wednesday, 14 Dec 2022