Vol. 1043 No. 1
69. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications his views on the risk of blackouts and brownouts this winter, in light of media reports that back-up generation will not be delivered on time; if this risk has been assessed, and what contingency is in place; the date on which the energy security review and a report (details supplied) will be published; and if he will make a statement on the matter. [42053/23]
I wish to ask the Minister about the risk of blackouts and brownouts this winter in light of media reports that back-up generation will not be delivered on time. Has this risk been assessed? What contingency is in place? What date will the energy security review and the McCarthy report be published?
The Commission for Regulation of Utilities, CRU, has statutory responsibility to ensure security of supply and has the duty to monitor electricity supplies and to take such measures as it considers necessary to protect the security of supply. It is assisted in its role by EirGrid, the electricity transmission system operator, and my Department.
The CRU has a programme of actions under way to ensure the security of our electricity supply over the coming winters. Regular updates on this programme are published on the CRU website.
Electricity supply margins are expected to remain tight throughout this year. The CRU is continuing to work with key stakeholders to implement appropriate mitigation measures to further reduce risks over winter and lower peak demand during this period. These risks were also high in winter 2022-2023 and no blackouts or brownouts occurred. The number of system alerts is also decreasing as a result of the actions and mitigations being taken in the programme.
One of the primary measures in the programme is the delivery of approximately 650 MW of temporary emergency generation, TEG, capacity at four sites around the country. There is substantial progress at all four sites and the first of these TEG sites is expected to be operational at the end of October to provide backup capacity during times of system stress.
My Department is currently finalising its review of security of energy supply and the forthcoming energy security package will be published shortly. The review is focused on the period to 2030, but in the context of ensuring a sustainable transition up to 2050. It integrates a number of areas of work.
The Government's energy policy objectives are to ensure energy is affordable, sustainable and secure. Underpinned by these objectives, the review considered the risks to supplies, and a range of mitigation measures, including the need for additional capacity of indigenous renewable energy but also energy imports, energy storage, fuel diversification, demand-side response and renewable gases, such as hydrogen.
The completion of the extensive review is a key priority and I have committed to bring my energy security recommendations to Government for consideration in the coming weeks.
What is the headroom or margin for this winter? EirGrid’s Shaping our Electricity Future 1.1 points out that 700 MW of previously awarded capacity was not delivered. What is the margin for this winter? There is 650 MW of temporary emergency generation to be delivered at four sites. I think Shannonbridge is to come on in October. Will the Minister of State update the House on the three other sites? When will they be delivered?
On the energy security review, is there still a commitment that the McCarthy report will be published with it and that both will be published or brought to the Government shortly? We heard that back in June, too. What is the time line?
The temporary energy generation involves four peaking plants in four different sites around the country. One is coming on line in October, another in spring and the other two next year. I can give the Deputy a more detailed time line outside of this reply.
The McCarthy report looks at the reasons for the capacity generation shortfall, that is, the reasons we are in this situation. It was commissioned last year and will explain, from an independent viewpoint, the causes for why we were in a situation where we had to procure emergency generation at short notice. It will be published as part of the energy security review and that will happen in the coming weeks and will be brought to the Government for approval in the coming weeks.
I am not sure what "coming weeks" means. I would like to see the McCarthy review. I do not know why it needs to be delayed. We could and should see it straightaway. I would like to know what “coming weeks” means because in June we expected to see it over the summer months. That was what the Minister led us to believe but it did not happen. What is the headroom for this winter? Does the Minister of State know what that will be in terms of supply and demand that a limited amount of temporary emergency generation will be a buffer?
The Minister of State mentioned diversification of fuel. What are the plans for Moneypoint? Is it the case that it is on track to be closed and to stop using coal in the years ahead? Is it now the plan to transition it to oil, as I am led to believe?
Temporary energy generation provides an extra 650 MW. It improves the buffer that is available in terms of a shortfall. The Deputy is asking me exactly what the headroom is. I think that really depends on how many plants suffer from unscheduled downtime. I am not sure it is an entirely predictable figure or something that I can give him.
EirGrid gave it to us last year. There is an assessment. It would be helpful to have it for this year. About this time last year, EirGrid indicated the figure.
I will come back to the Deputy with a more detailed response after this session, then. In terms of Moneypoint, it is scheduled to be decommissioned. I am not aware of a suggestion which I think I saw in the media this morning that it would transfer to oil. Oil and coal are the most inefficient and most polluting forms of generating electricity that make the most emissions. Our move is to turn Shannon into a clean energy hub and to use the grid capacity that exists in Moneypoint for clean energy generation and hydrogen.
70. Deputy Seán Canney asked the Minister for the Environment, Climate and Communications the plans he is putting in place to reduce the waiting time for householders under the better energy, warmer homes scheme; and if he will make a statement on the matter. [42047/23]
What plans are being put in place to reduce the waiting time for the warmer homes scheme to be enacted in houses? At present, the first letter applicants get is an acknowledgement confirming their reference number and stating that it will take up to 24 months before works will be carried out. I want to know what we are doing to sort out that timeline.
The better energy, warmer homes scheme delivers a range of energy-efficiency measures free of charge to low-income households that are vulnerable to energy poverty and it is a top priority for me. The scheme is very popular. Some 20,000 applications were received over the period from January 2022 to the end of August 2023. The scheme is delivering deeper and more complex upgrades in recent years, with the average cost of upgrades increasing to €24,000 in 2023. While more significant works deliver enhanced upgrades for homeowners, they also take a longer time per home to complete. The scheme was also impacted significantly by Covid-19, which caused a backlog.
My Department has worked with the Sustainable Energy Authority of Ireland, SEAI, to increase output and reduce waiting times. The average waiting time from application to completion in the second quarter of 2023 was 19 months, a decrease from 26 months in 2022. The following actions were taken in order to reduce waiting times: increased SEAI staff for the scheme; increased budget allocation up to €148.5 million this year; and contractor, supply chain and inflation management and mitigation. Importantly, a new contractor panel for the scheme was established earlier this month with expanded capacity. It is intended that the panel will be in place for four years, with an estimated contract value of €700 million, which is a very strong signal of commitment to the market that this money is available from the State for investment. Additional funding of €264 million has also been secured for the scheme from the European Regional Development Fund and that will supplement the annual allocations over the period from now until 2027.
I welcome the fact that waiting times are being reduced but to bring them from 26 months down to 19 months is not ideal. We need to go further. The Minister of State has explained that this is a great scheme. It has the money in it to deliver what is needed by people who are in fuel poverty. The problem is with the expectation that has been created by the scheme. The design of the scheme is fine. The application form itself is very simple, a three-pager. Everything is fine until they get the acknowledgement with the reference number on it, which says it can be up to 24 months. People can feel deflated and ask what it is all about. I welcome the fact that additional staff and money are being put in place. However, we need to engage with local contractors to get works done. Under the framework the Minister of State is talking about, I think we have central purchasing and all that. We have people coming from Cork up to Galway to carry out work and all this kind of thing. Is that even environmentally friendly? I would suggest that we use more local, smaller builders to carry out these works and to try to spread the workload across the country.
I agree that we need to go further. This history of this scheme is that there was a time not that long ago when it was difficult for the SEAI to get sufficient applications and interest from people and they were advertising it. They do not have to advertise it now. People understand what retrofit is and they want it. There is no cost to this scheme. It is targeted at people in energy poverty. When there is a price of zero on something there is going to be a queue, particularly when it delivers such incredible value and changes people's quality of life. It is natural that there are more people applying for it than there is availability. However, we have massively increased work, with up to 400 homes a month being retrofitted. The volume of the scheme has increased, as has the amount of money going in. The Deputy has acknowledged that the number of staff has increased.
The Deputy has said he would like to see more local contractors. Retrofit is really suited towards local contracting, just like any form of home renovation. It is something that is better done locally. I will have a look at the procurement documents on this and see if there is any form of geographic lotting on it. I take the Deputy's point.
I agree wholeheartedly with everything the Minister of State has said. This is not a criticism of the scheme. It is a free scheme. The number of people coming into my office inquiring about it has risen over the last six months. I accept that. If the Minister of State looks at the local contractors, that would be important. One other aspect of the scheme he might have a look at is cases where someone got some measures previously, maybe ten years ago when there was an attic insulation scheme. They are not being considered now but they may have other works that need to be carried out in their homes that were not part of a previous grant scheme. It is important we do not just dismiss these applicants by saying we cannot include them because they got a previous support. It is important that we look at that. There are people who got attic insulation previously and who still need to get more works done on their houses. They are being excluded for the simple reason that they got a previous support. That is just something to look at also.
From memory, I believe that at least one of these schemes was changed to allow for part works to be done and then to have work done in stages, so people would not be excluded if they had done some of the works and then got more of the works. My understanding is that these schemes are quite comprehensive. The average cost is €24,000 which is quite a deep retrofit. I think in general, people are getting everything done in one go. If the Deputy has a specific example of any of his constituents who were excluded because they had done some works previously, I would like to look at that particular situation and see if we can fix it.
71. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he has met with renewable energy stakeholders regarding publicly expressed concerns about the latest renewable energy support scheme auction; if he will outline the measures he is taking in this regard to ensure that renewables targets are met; and if he will make a statement on the matter. [42054/23]
Has the Minister met with renewable energy stakeholders regarding publicly expressed concerns about the latest renewable energy support scheme, RESS, auction? Will the Minister of State outline the measures being taken in this regard to ensure that renewable energy targets are met and will he make a statement on the matter?
Earlier this week, the Minister, Deputy Eamon Ryan, announced the provisional results of the third onshore RESS auction, RESS 3. The successful projects, mostly solar PV projects, represent a 12% increase in Ireland’s renewable energy capacity from current levels. This is a positive result for the climate, for security of supply and for maintaining our ambitious programme to support decarbonisation of the wider economy. While these are lower volumes than previous auction rounds, RESS 3 targeted mature, shovel-ready projects that all have planning permissions and grid connection offers and are expected to deliver rapidly, by early 2027 at the latest. A fourth, and larger, RESS auction is due to take place in 2024.
The auction results will help to bolster energy security and system resilience, will contribute to emissions reductions over the second carbon budget period and will continue a steady roll-out of renewable energy projects to support our EU renewable targets in 2027 and 2030. The auction volumes underpin the need for a much stronger pipeline of onshore wind and solar projects coming through the grid connection and permitting processes.
It also highlights the urgent and critical need for greater alignment between local plans and renewable energy targets to support investment in and delivery of renewable energy projects.
The average bid price in the auction was slightly higher than in RESS 2 last year. This is attributable to a number of factors, including international inflationary pressures in input costs as well as increases in the cost of capital - this affects borrowing costs, which make up a significant portion of funding for solar and wind farm projects - in line with European Central Bank, ECB, rate rises. My Department and I have met industry representatives over recent months to discuss these pressures and other matters as part of the RESS 3 consultation process. This process will continue through the next auction round. In addition, individual RESS auctions are not the only route for projects. Developers are also free to choose to enter later auctions or take other routes to market, such as corporate power purchase agreements.
The Minister of State's response was shocking and concerning. If that is the official State response, the Government is in denial about where we are in the delivery of renewables. Alarm bells should be going off, but I get no sense from the Minister of State’s response that they are. It was signalled that this would be the outcome, but based on his response, the State is ignoring the alarm bells. There will be less output at a higher price. Of the three wind projects, one of them had timed out from RESS 2. I am concerned about how these projects are rolling over from one RESS into another.
Is the Minister of State concerned by the auction’s outcome and what is he going to do about that? Will he establish a stakeholder forum, as has happened in other countries, to meet stakeholders and address what are real barriers in the system?
My primary priority is to ensure there is a sufficient pipeline of renewable energy projects to meet our 2030 commitments. As part of our sectoral emissions ceilings, we are to decarbonise our electricity sector by 75% by 2030. This will require a large quantity of onshore and offshore wind and solar power. We have published an auction programme calendar out to 2025, we have continuous engagement with the industry and I am always available to meet any of the industry players. I am happy to set up a stakeholder forum if that is what they want. Last week, I met RWE, the German offshore wind company that is prospecting to build wind farms in the Irish Sea. In general, I am always engaging. I am keen to ensure that we have a sufficient pipeline. This auction was fully subscribed and the price is reasonable, given that there have been ECB rate rises and inflation. I am happy that we are on the right course and that we will meet our targets for 2030.
I welcome that the Minister of State is willing to establish a stakeholder forum. Sinn Féin has published legislation in that regard. A forum should happen. It would provide a space to address the concerns about the grid, planning and auction design that have materialised following the outcome of the recent auction.
I have tabled another oral question that we will probably not reach. I met community energy companies that were in RESS 1 and RESS 2. Their projects will not be delivered. Instead, they will time out because of ESB Networks and An Bord Pleanála. Will the Government extend the delivery timelines for those RESS 1 and RESS 2 projects to ensure that they do not fall off the edge of a cliff? Otherwise, many of them will time out.
Community energy projects are critical.
It is not just community projects.
I do not want to see all of our electricity generation being supplied by large multinationals. I want to see community energy production. With that in mind, a community energy support scheme has been developed and is likely to be published in the coming months. It will ensure that people feel a sense of belonging and ownership as regards the electricity generated in their respective areas. The scheme is based on the experience in Denmark and Germany. A focus has been put on community energy by the Minister, Deputy Eamon Ryan. Work has been done on a support scheme and is due to be published shortly
It is not just community projects. Will the Government extend the timelines?
Please, no more interruptions.
I am not giving a commitment on that, but I will revert to Deputy O'Rourke.
I thank the Minister of State. I am just trying to get answers to the questions I have asked.
We could stay here forever and never get through parliamentary questions if we continued like that.
We never get answers anyway.
I know, but the quality of the answer is not in the hands of the Chair.
72. Deputy Catherine Connolly asked the Minister for the Environment, Climate and Communications to outline the work under way by his Department to support community-led renewable energy generation; and if he will make a statement on the matter. [41917/23]
To follow up on the Minister of State’s comments about community energy and how the Government will put an emphasis on that, my question relates specifically to that matter. Will the Minister of State outline the work that is under way by his Department to support community-led renewable energy generation?
Through the first two RESS auctions, my Department provided pathways and supports for communities to participate in renewable energy projects via the application of a community projects category and the requirement of a mandatory community benefit fund for all RESS projects. Furthermore, a community enabling framework for renewable energy projects to provide a package of enabling supports, including technical, financial and legal services, has been rolled out to assist communities in navigating the challenging terrain of electricity generation. The SEAI is leading in implementing and facilitating these components of the framework, which include a trusted advisory service, enabling grants and nine information guides on the SEAI's website. To address some of the challenges associated with grid connections, the SEAI is also undertaking grid studies on a county basis to support communities in identifying sites within their localities that are most likely to have an economically viable grid connection. Three such studies have taken place so far, with accompanying community information events highlighting the results. Four more studies are planned in the coming months.
Through my Department’s continued engagement with renewable energy communities, RECs, there is evidence of significant challenges that REC projects may face with the competitive, auction-based nature of RESS along with grid and other barriers to project delivery. Therefore, a community projects preference category has not been included in RESS 3. Rather, support for communities for the development of renewable projects will now transition to the non-competitive small-scale renewable electricity support scheme, SRESS. The export tariff phase of SRESS to support small-scale and community renewable projects is due to be launched later this year. This scheme will align more closely with the experience and capacity of the community energy sector and support a more sustainable delivery pathway to the renewable energy community target of 500 MW by 2030.
We declared a climate emergency and a biodiversity emergency in 2019. While I welcome the Minister of State’s positive comments, I have no idea as to how the Government is making decisions. In RESS 1, seven community projects were successful but only four remain. I have no details in that regard. I understand that three pulled out and four are in progress. In RESS 2, eight community projects were successful, but we do not know how many are still functioning, if they will be extended or what review the Department has carried out in respect of them. The Government has now changed tack and is going with RESS 3 while a support package will be announced later this year. I do not know whether that is good or bad, but I will say where I am coming from - I believe that an integral part of the solution is community-led projects with people on board. The duty of the Minister of State and his Department is to outline to us in clear, readable English what progress has been achieved, what the Government has learned, what has failed and why the Government has changed tack. It would be helpful if they could do that.
Perhaps a new approach would be to get copies of the responses to questions. It would be helpful for Deputies to have those while the Minister of State reads them out.
The Department's assessment is that auctions are not the best option for renewable energy project support. For this reason, the Department is moving towards supporting community energy projects through a non-competitive renewable energy support scheme. This will take community projects out of the auction practice.
If the Deputy wants more details about the results of the auctions beyond what has been published, she can contact my office. I will be happy to try to assist in that way.
My Department has analysed the challenges for community energy projects.
They are not all about price or finance; a lot of it is to do with information because it is a complex process. The SEAI has been tasked with providing as much information as possible to enable community energy projects to go ahead and provide things like technical, financial and legal services through the community enabling framework. The Department is trying to find every way it can to enable community energy projects to happen and take them out of the auctions process.
I welcome that it has gone into the non-competitive section and that the Department is working on this. My difficulty is that I have no analysis before me as to what happened in RESS 1 and 2, where community groups were involved. Is there documentation, data or an analysis of what did and did not work which led the Department to what theoretically would be a very welcome change in terms of moving into the non-competitive area?
My trust is at an all-time low. We are facing a precipice in regard to climate action and we need urgent action. I will digress a tiny bit, but my comments are related to my question. I am often very critical of it, but Galway City Council did its job in 2021 regarding a decarbonisation zone. It set out the zone, but two and a half years later nothing has happened. I live in the Claddagh and know Galway very well. I was born and bred there. I see huge opportunities for community led projects to make communities independent, but we need an analysis from the Department in terms of how decisions are being made.
There are comprehensive and deep resources available on the SEAI website at the moment. There are now nine different information guides covering different sectors of what is required in order to set up a community energy scheme.
I want an analysis of what happened, not what the SEAI is now doing.
The Deputy can table that as another question and I will be very happy to answer that.
Dear God.
It justifies a deeper answer than what I can give. There is clearly a commitment in the Department to help and foster community energy and switch from the competitive auction process towards a non-competitive, supported community energy support scheme. I invite the Deputy to promote any energy scheme in her area and to contact the Department for details.
