Vol. 1066 No. 1
1. Deputy Pa Daly asked the Minister for the Environment, Climate and Communications for an update on the transition to renewable heat; if he has considered measures to increase the use of biofuels; and if he will make a statement on the matter. [17836/25]
I ask the Minister for an update on renewable heat and whether he has considered measures to increase the use of biofuels because, when it comes to our transition to renewable heat, alarm bells should be ringing. No matter what way you look at it, Ireland has no hope of meeting its targets. For years, the Government has been acting as if heat pumps were the only show in town, but experience and the evidence have shown us the take-up has been extremely poor.
Gabhaim buíochas leis an Teachta as a cheist.
The national heat study, published by the Sustainable Energy Authority of Ireland, SEAI, contains a detailed analysis that is being used by my Department to inform the development of policies and measures to decarbonise Ireland's heating and cooling sectors by 2050. I assure the Deputy that the study considered several potential decarbonisation options for a wide range of homes and, indeed, business premises. This included the use of liquid biofuels such as HVO, solid biomass, biogas and other technologies such as heat pumps and district heating networks.
I am acutely aware that heat pumps are not the only solution. The roll-out of heat pumps to new dwellings is very welcome but, certainly in respect of retrofitting, there are challenges. Therefore, we must consider all options. The recommendation of the heat study is that heat pumps represent the optimal decarbonisation path for heating systems and decarbonising buildings, with district heating also an option that can be widely deployed. I really want to see district heating accelerated because we have been slow on it, and that is being kind.
The national heat study has recognised the potential role of sustainable bioenergy for buildings that require alternative routes to decarbonisation, and that is being considered as part of a suite of measures to decarbonise heating. My Department is also working on the introduction of a renewable heat obligation, RHO, for the heat sector, which will stimulate demand and increase the use of renewable fuels by obligating suppliers of fossil fuels used for heat to ensure a proportion of the energy they supply is from renewable sources. The work on the RHO is urgent and I want to bring it to a conclusion as quickly as possible. There will be a cost related to it but the introduction of the RHO is critical in supporting exactly what the Deputy has asked for today, namely the use of alternatives to heat pumps.
The Minister is probably aware that we have retrofitted only 12% of our BER B2 target for 2030 and 5% of the heat pump target. I acknowledge that the Minister stated heat pumps represent the optimal approach. For newer, efficient buildings, heat pumps are the obvious choice but the cost of making people's homes pump-ready makes an immediate switch impossible. Some 70,000 people rely on liquid fuels. One in three of them is over 65, and 59% of those with a liquid boiler live in rural Ireland. The current scheme will never be the answer for them, but biofuels are a good alternative. The Minister stated a proportion should be using biofuels. What proportion does he have in mind? The switch to biofuels can be much less disruptive for houses. It can be done in an afternoon rather than waiting for months. The price of upgrading a boiler could be as low as €300, by comparison with the cost of installing a heat pump in a property, which could be thousands upon thousands of euro.
Despite the obvious advantage of biofuel, combined with the failings of the current scheme, it is frustrating that more emphasis has not been placed on biofuel. What measures are being taken and what is the proportion?
I am considering all options. There is a new Administration and new Minister. I can see where we have done very well in retrofitting. I have already said very clearly that heat pumps represent the optimal solution but not the only one.
We have got to carry out a very detailed assessment of the supply of biofuels, including biofuels used in transportation. If we are to accelerate their use across residential dwellings, what level of supply can we actually achieve at this stage?
The RHO will be very important. It will be a mechanism to really accelerate the use of alternative fuels. We have an objective within the RHO to support the delivery of our commitment to producing 5.7 TW of indigenous biomethane by 2030. I will be straight with the Deputy: we are way off that at the moment and that is why I have got to consider all our targets, particularly for renewables. In some areas, such as SPV, we are doing very well. I take the point on deep retrofitting and its cost but I am right now carrying out an assessment with the SEAI on the grants currently available and how we might be able to alter them and make them more accessible for people, particularly in this area.
Does the Minister know when that assessment will be completed? The grants are clearly too low and will not suit people who do not have €50,000 to invest in their home.
There are many people, particularly older people, who have been using some sort of liquid fuel to heat their houses for many years. They are not going to leave their homes for a few months, rent somewhere or stay with family because of the disruption. They will just keep going the way they are going.
Speaking practically, what extra benefits or grants will the Government give? I was just checking with Kerry County Council, for example, and only 708 of its 4,500 social homes have a BER of A or B. That is moving frustratingly slow as well. If the county councils are not doing it, how do you expect anyone else to do it?
The local authorities are doing a good job retrofitting social housing stock. I had experience of that in my previous portfolio. We have an exacting target of retrofitting 500,000 homes by 2030. At the last count, the figure stood at approximately 165,000 across the country, both public and private. However, there is work to do be done.
To answer the Deputy's question on the grant offering, I have asked the SEAI to come back to me with options on that. I want to conclude that before the summer but I am not going to rush into it either. There are areas of the grants that are working very well but I want to make them more accessible. We have also expanded the energy retrofit loan scheme, as the Deputy will have noticed. If that is available, the interest rate is generally around 3% or less.
The heat policy statement is important and will guide us in this area. To inform the House as to where that is, I have a draft statement, which has been informed by the findings of the national heat study prepared by my Department. We have had consultations with other State agencies and Departments. A strategic environmental assessment, SEA, has been completed and a public consultation on the SEA report and draft heat policy statement will now be undertaken. I expect that to be done in the coming weeks. That will go out to public consultation and inform how we move forward. I thank the Deputy for his question.
2. Deputy Ciarán Ahern asked the Minister for the Environment, Climate and Communications if he will intervene to stop the construction of the Shannon LNG terminal; and if he will make a statement on the matter. [18315/25]
I am covering for Deputy Ahern. I thank the Cathaoirleach Gníomhach and welcome the Minister to his new role. This is my first time having an exchange with him in the House.
We know the Cabinet has approved the proposal to develop a State-led emergency gas reserve in the form of a floating storage regasification unit, FSRU. This will have the capacity to supply Ireland's entire gas demand for seven days. We do not believe the Shannon LNG terminal is necessary or prudent. I ask the Minister if he will intervene to stop the construction of this terminal and make a statement on the matter.
I thank the Deputy for his question. As outlined in the programme for Government, we committed to taking decisive action to radically reduce our reliance on fossil fuels and achieve a 51% reduction in emissions by 2030, while achieving net zero by no later than 2050. We have been making significant progress in that regard. We also committed to achieving 80% of Ireland's electricity generation from renewable sources by 2030. It is important to use the opportunity to inform the House that by June this year, there will be no coal in our energy generation. There is no peat. We have been moving very quickly and approximately 33% of our energy is generated through renewables in an average year. We want to increase that.
As the Deputy said, I recently sought approval to proceed with the development of a State-led strategic gas emergency reserve. This is a transitory measure, as identified in the energy security review to secure Ireland's energy systems in the medium term as we continue to transition, as detailed in our climate action plan, to indigenous, clean renewable energy. The mitigation measure will be complemented by other actions identified in the energy security review which focus on securing Ireland's future energy system in the long term by moving from an oil- and gas-based energy system to an electricity-led system, maximising our renewable energy potential, flexibility and integration into Europe's energy system. I fully stand over the decision we made on the State-led strategic gas reserve. I would be in dereliction of my duty if I ignored the advice we got about the risk to Ireland's electricity generation - and the risk to Ireland full stop - if we did not have a strategic gas reserve.
The plant to which the Deputy referred, the proposed Shannon LNG terminal, is a privately owned, commercial proposal. The assessment of a planning application for this development is a matter for An Bord Pleanála. I will not be intervening.
I thank the Minister. I am disappointed to hear his reply. Given that the FSRU would, in theory, provide sufficient gas reserves, how can we have faith in the Government's commitment to end fossil fuel use and to reach our targets? Is it a case that the FSRU will not provide sufficient energy security and the Minister feels we need the Shannon LNG too?
I know he referenced coal but greenhouse gas emissions from LNG are 33% more potent than coal. Building an LNG terminal would lock us into fossil fuel reliance for decades.
We declared a climate emergency in 2019. I remember having an exchange with a former Green Party TD before the election who assured me the Government's new planning and development Bill, which was then before the previous Oireachtas, would not allow the approval or construction of LNG infrastructure. It is clear that what the Labour Party was pointing out before the election about the planning and development Bill is true.
I need to get clarification from the Deputy's own party on whether it supports the State-led strategic gas reserve. I am not sure where the Labour Party stands on that. All parties should support it because there is a risk to our country, society and economy if we do not build it. We have an oil reserve but we do not have a gas reserve and we need that. It will be State-led.
On the other matters, such as the planning application the Deputy referred to, any application for fossil fuel infrastructure will be subject to planning, consenting and regulatory approvals by the relevant bodies and the provisions of the Climate Action and Low Carbon Development Act. That is important. Those conditions will apply but the policy statement on the importation of fracked gas will no longer have to be considered. I have been clear on that. I have set that statement aside. I believe that is the right thing to do because the legal advice received by my predecessor was that we could not make a distinction between types of gas. That legal advice was very clear but it was not acted upon. Such a distinction would have made the delivery of any type of strategic gas reserve incredibly difficult. The matter of any private entity making an application for anything in this country goes through the normal planning process. It will be assessed by An Bord Pleanála in line with our legislation. I will not be intervening.
I will make very clear my own position. I do not support the FSRU. The Labour Party believes we cannot justify this if we intend to be very serious about reaching our climate targets and achieve a 51% reduction in emissions by 2030. In light of the 2021 policy statement, which introduced a moratorium on LNG and fracked gas, and the Government's independent analysis which raised a range of risks associated with such a development, we are very concerned because the Shannon LNG terminal will be a permanent commercial enterprise that will lock us into fossil fuel dependance for decades to come. We could be eligible for up to €26 billion in fines if we increase our fossil fuel use. The Irish taxpayer will have to pay for this for decades to come.
We are absolutely committed to continuing the transition to renewable energy. We are making progress on that with onshore wind. We have created the infrastructure, which I set up in my previous Department under the marine planning Act and the creation of the Maritime Area Regulatory Authority, MARA. We have six planning applications in for offshore renewables. I will bring forward proposals to Government shortly regarding the acceleration of the designated maritime area plan, DMAP, process.
Ireland's future is with green energy. It will be good for our economy, climate and people. In the meantime, we have to make sure we prepare for events we cannot foresee. When I received very clear advice in the 2030 energy risk report that our energy system is at risk and we do not have a strategic gas reserve, I had to act upon that.
I am interested to note the Deputy has confirmed the Labour Party is opposed to having a reserve. I take it the party is opposed to the oil reserve we have in this country already. We will continue to accelerate the transition away from fossil fuels but we have to protect our energy infrastructure. If we had an event that disrupted the gas supply, be that from the Corrib gas field or Scotland, we would have maybe three days of normal energy supply.
With regard to gas, however, the report determines that as a transitional measure we will examine the introduction of a strategic gas emergency reserve to address security needs in the medium term. It will be used only if a disruption to gas supplies occurs.
Inability to meet peak gas demand during a cold spell would mean curtailing gas demand to balance the system. By 2030, our target is that 80% of our electricity is expected to be produced from renewables, meaning our overall gas demand is expected to decline. Having said that, the projections are peak gas demand will continue, or will not begin to decline, until about 2035. The electrification of the heat and transport sector will mean increased peak day electricity demand. During those periods where variable renewable generation is largely not available, gas backup is expected to be used, especially when support from batteries and electricity demand-side response is exhausted. On this basis a strategic gas emergency reserve in the form of the FSRU has been approved by Government to secure Ireland's energy systems as a transitionary measure. A strategic gas emergency reserve will provide the resilience highlighted in that report and will mitigate the consequences for our society and economy of a significant gas supply disruption in Ireland.
3. Deputy Pa Daly asked the Minister for the Environment, Climate and Communications for an update on energy security; what the Government means when it refers to a "State-led" LNG facility; what "State-led" means in this context; if there will be a commercial element; and if he will make a statement on the matter. [17837/25]
It was quite noisy. My understanding, and this has been reported in the media, is the CEPA report offers an alternative view to the previous analysis done on energy security. It really is important because I understand the CEPA report says that by the time we get any emergency or transition measure in place, it will be very costly, but also there will not be a need for it at that stage. We could spend ten years and I believe €300 million putting in place infrastructure that will not be needed by then from a security perspective but which will lock us into a fossil fuel future none of us wants and which, from a statutory perspective, we must avoid at all costs.
It is interesting when the Minister talks about this "emergency" infrastructure. This is not the best language to use because it paints a very different picture of this reserve than what would happen in reality.
To answer the Deputy's question directly at the start, the analysis conducted by CEPA is under review in the Department now and I must review that. However, I can confirm the study finds Ireland will not meet the N-1 infrastructure standard for gas during the 2030s. The report finds the addition of an FSRU will allow Ireland to meet that standard and I will publish that in the coming weeks. I do not have a definitive date as I have got to review it, but it will be well in advance of summer. It is important all Deputies, regardless of people's view on this, get an opportunity to see that independent advice. While there is a significant capital spend when we proceed with the purchase of the floating terminal, once we are no longer using it we can sell it off. The port infrastructure will be used for other things so it is an investment in our country rather than a one-off spend. There will be annual management costs to this as well and it will be managed, operated and run by GNI.
On the terminology of this being emergency infrastructure, I understand that every two months, because of the very nature of LNG, the gas will have to be distributed through the pipeline-----
-----so we are essentially just replacing the majority of the gas we are using at the moment with this system even though we are calling it temporary and saying it will only be used in case of disruption. To compare it to the oil reserve is incorrect because that does not have to be used every two months. We do not have to get rid of it out of the system and ensure everyone uses it as it just sits there. That is where the complication comes in as well.
We sort of have two processes here. We have the potential for State-led LNG, which will come down to that analysis and there is discussion about whether we need it or not. There is also how the Government has not ensured that, under planning law, An Bord Pleanála cannot grant any commercial LNG facilities. These are two very separate things. When the High Court directed An Bord Pleanála to reconsider that LNG planning permission it said the policy documents were not strong enough. Is there going to be a very solid indication from Government that we will not facilitate any commercial LNG or any commercial LNG operator and at the same time perhaps looking at this temporary measure that is to be State-owned?
The Deputy is aware of this, but I restate An Bord Pleanála is independent of Government. Applications are made. The potential development she refers to is a matter that has been before the courts and has been with An Bord Pleanála. I am not going to comment further other than to say Government will not intervene in that instance. It would not be appropriate for us to do so. Our focus is on the FSRU, which will be State-led and State-run. As to how that operates, gas is used every couple of months, but it is not going to be used for additional energy generation. It will be used instead of other gas. That is just how the mechanism and process works. It will not produce any additional energy. It will not increase our reliance on gas, but we need that reserve in case there is a disruption. Disruption to the connection with Britain via Scotland would cause incredible difficulties for this country, our society and our economy and I cannot ignore the advices there.
I fully stand over the decision Government has made and will publish the CEPA report.
And put it online.
4. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications if he will release the report on liquefied natural gas commissioned by his predecessor; and if he will make a statement on the matter. [17600/25]
I welcome the students as well. It is always very interesting to visit here. I came into Leinster House when I was maybe eight or nine with Brendan Howlin and it was fascinating and has stuck with me.
It looks like LNG is the topic of the day. My question is about the release of that report. I welcome the fact that the Minister has said it will be released within a matter of weeks, but will he also refer to the GNI report? What is really important is that when we are having these discussions we all have the facts available to us. Any decision needs to be based on science and the facts.
The Department engaged Cambridge Economic Policy Associates Limited to carry out an updated analysis of security of energy supply in Ireland covering the period beyond 2030 and up to 2040. This study builds on CEPA's technical analysis of the security of supply of Ireland's electricity and natural gas systems up to 2030, published in September 2022. That helped inform the review of Ireland's energy security review.
In November 2023, the previous Government approved and published the Energy Security in Ireland to 2030 report. That is the report I referred to earlier in response to Deputy Daly. It concluded that Ireland's future energy will be secured by moving from a fossil fuel-based energy system to an electricity-led system, maximising our renewable energy potential and flexibility and being integrated into Europe's energy systems.
With regard to gas, however, the report determines that as a transitional measure we will examine the introduction of a strategic gas emergency reserve to address security needs in the medium term. It will be used only if a disruption to gas supplies occurs.
Inability to meet peak gas demand during a cold spell would mean curtailing gas demand to balance the system. By 2030, our target is that 80% of our electricity is expected to be produced from renewables, meaning our overall gas demand is expected to decline. Having said that, the projections are peak gas demand will continue, or will not begin to decline, until about 2035. The electrification of the heat and transport sector will mean increased peak day electricity demand. During those periods where variable renewable generation is largely not available, gas backup is expected to be used, especially when support from batteries and electricity demand side response is exhausted. On this basis a strategic gas emergency reserve in the form of the FSRU has been approved by Government to secure Ireland's energy systems as a transitionary measure. A strategic gas emergency reserve will provide the resilience highlighted in that report and will mitigate the consequences for society and economy of a significant gas supply disruption in Ireland.
I thank the Minister. I may have misheard but I do not think he referred to the CEPA report.
I did. I will come back to it in the supplementary.
It was quite noisy. My understanding, and this has been reported in the media, is the CEPA report offers an alternative view to the previous analysis done on energy security. It really is important because I understand the CEPA report says that by the time we get any emergency or transition measure in place, it will be very costly, but also there will not be a need for it at that stage. We could spend ten years and I believe €300 million putting in place infrastructure that will not be needed by then from a security perspective but which will lock us into a fossil fuel future none of us wants and which, from a statutory perspective, we must avoid at all costs.
It is interesting when the Minister talks about this "emergency" infrastructure. This is not the best language to use because it paints a very different picture of this reserve than what would happen in reality.
To answer the Deputy's question directly at the start, the analysis conducted by CEPA is under review in the Department now and I must review that. However, I can confirm the study finds Ireland will not meet the N-1 infrastructure standard for gas during the 2030s. The report finds the addition of an FSRU will allow Ireland to meet that standard and I will publish that in the coming weeks. I do not have a definitive date as I have got to review it, but it will be well in advance of summer. It is important all Deputies, regardless of people's view on this, get an opportunity to see that independent advice. While there is a significant capital spend when we proceed with the purchase of the floating terminal, once we are no longer using it we can sell it off. The port infrastructure will be used for other things so it is an investment in our country rather than a one-off spend. There will be annual management costs to this as well and it will be managed, operated and run by GNI.
On the terminology of this being emergency infrastructure, I understand that every two months, because of the very nature of LNG, the gas will have to be distributed through the pipeline-----
-----so we are essentially just replacing the majority of the gas we are using at the moment with this system even though we are calling it temporary and saying it will only be used in case of disruption. To compare it to the oil reserve is incorrect because that does not have to be used every two months. We do not have to get rid of it out of the system and ensure everyone uses it as it just sits there. That is where the complication comes in as well.
We sort of have two processes here. We have the potential for State-led LNG, which will come down to that analysis and there is discussion about whether we need it or not. There is also how the Government has not ensured that, under planning law, An Bord Pleanála cannot grant any commercial LNG facilities. These are two very separate things. When the High Court directed An Bord Pleanála to reconsider that LNG planning permission it said the policy documents were not strong enough. Is there going to be a very solid indication from Government we will not facilitate any commercial LNG or any commercial LNG operator and at the same time perhaps looking at this temporary measure that is to be State-owned?
The Deputy is aware of this, but I restate An Bord Pleanála is independent of Government. Applications are made. The potential development she refers to is a matter that has been before the courts and has been with An Bord Pleanála. I am not going to comment further other than to say Government will not intervene in that instance. It would not be appropriate for us to do so. Our focus is on the FSRU, which will be State-led and State-run. As to how that operates, gas is used every couple of months, but it is not going to be used for additional energy generation. It will be used instead of other gas. That is just how the mechanism and process works. It will not produce any additional energy. It will not increase our reliance on gas, but we need that reserve in case there is a disruption. Disruption to the connection with Britain via Scotland would cause incredible difficulties for this country, our society and our economy and I cannot ignore the advices there.
I fully stand over the decision Government has made and will publish the CEPA report.
And put it online.
Yes. We will share it with the Deputy.
5. Deputy Ruth Coppinger asked the Minister for the Environment, Climate and Communications if he will report on the impact of the expansion of data centres on the State’s climate change targets; and if he will make a statement on the matter. [17991/25]
I want the Minister to report on the impact of data centres on us reaching our climate change targets. As he knows, 21% of all metered electricity use is now coming from data centres, whereas all residential dwellings create 28%. It has increased five times in eight years. It is the dominant driver of increased electricity demand in Ireland according to the SEAI. How can we reach our targets with this amount of data centres?
I thank the Deputy for her question. Ireland has attracted the best data centres and tech companies in the world. This is a really important relationship and the Government continues to work with the sector towards a secure and decarbonised energy future. However, data centres, like all large energy users, have to exist within the boundaries of our climate legislation and targets. The programme for Government addresses the challenges regarding the sustainability of data centres by committing to allowing data centres that contribute to both economic growth and effective grid use by enhancing the use of renewable energy sources, energy efficiency technology and energy-effective solutions.
Ireland, similarly, has ambitious climate goals and the Climate Action and Low Carbon Development Act has set us on a legally binding path to net zero emissions no later than 2050 and to a 51% reduction in emissions by the end of this decade. Ireland also has very ambitious goals in relation to economic growth, digitalisation and data centre development. Emissions from data centres are captured under the electricity and buildings sectoral emissions ceilings, corresponding to their primary and secondary energy supply respectively. According to the EPA’s Provisional Greenhouse Gas Emissions 1990-2023 report, annual emission reductions of 10.3% are required for 2024-2025 in the electricity sector to achieve compliance with the sectoral emission ceiling for the carbon budget 1 period, and 2.9% for the buildings sector. In its greenhouse gas emissions projections report, published in May 2024, the buildings sector was projected to overachieve on its target of a 45% reduction in emissions between 2018 and 2030 by 15% in a with-additional-measures scenario. However, the EPA projected the electricity sectoral emissions ceiling could underachieve a target of 75% emissions reduction from 2018 to 2030 by 9% in a with-additional-measures scenario.
That is all very interesting, but if we have such a love-in with data centres we are not going to reach our emissions targets. We are already set to have a 57% shortfall for emission reduction for transport, buildings, waste and agriculture and a shortfall of 12% for renewable energy production. We face €26 billion in fines. How are we to pay that? How is the State to deal with that because of the policy of attracting data centres? The Taoiseach has been quoted as saying we are "demonising data centres" in Ireland with our commentary, but there is a lot to demonise them for. Just one Meta data centre in Clonee uses 2.5 million gallons of water per day. That is the same as Athlone, which is a town of 21,000 people.
How will we make up that shortfall in water and electricity?
There has been a commonality in People Before Profit to demonise data centres. I just saw the Deputy using her phone. Phones are central to everything data centres present around AI and online storage. They are critical to the infrastructure of a modern economy in Ireland. We will continue to deliver a balanced approach to facilitate additional demand for energy by data centres.
The Government has outlined clear principles for sustainable data centre development. In July 2022, we published the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy. It provided clear guidance to decision-makers in the planning process and encouragement for the data centre sector to implement decarbonised energy solutions and increase efficiency. It is the Government's preference for data centres to demonstrate decarbonisation in their design and additionality around renewable energy usage. That has been discussed with the sector and the IDA to provide a balance in continuing economic growth, ensuring that the future of tech companies, which provide thousands of jobs to this country, can be secured.
The Taoiseach made that comment when speaking at a data centre-linked company called Hanley Energy. There are two issues. Most of AI is utterly useless in terms of the impact for humanity, in comparison with actually dealing with climate change issues. There is no question most AI is not necessary. There is no effort by any of the companies to get people to reduce their online storage, which could be done easily. Most of us could do that. The Taoiseach has said emissions will be offset by renewable energy. It seems the LNG terminal is the Government's solution. That seems to be what is proposed. The Minister of State did not answer how this State will face into paying billions in EU fines when we also face into economic turbulence in the times ahead.
To address the Deputy's first point, AI is the technology of the future. To say it has no relevance to us trying to reach our climate targets-----
In comparison with reaching climate change targets.
It presents a real opportunity to unlock, produce and consume electricity more efficiently. I have no doubt there is significant opportunity in Ireland, with a lot of tech companies using AI and with their data centres, for us to enhance our competitiveness. We can also reduce our emissions. It is the technology of the future. We have set out the principles within Government that new data centre grid connections will be considered by system operators on a case-by-case basis. The Commission for Regulation of Utilities, CRU, is in place to conduct a review of connections of large energy users. We are using every lever at our disposal to ensure we do this in a sustainable manner that does not impact on our climate ambition but ensures tech companies, which as I said create thousands of jobs, are supported and secured.
6. Deputy Aindrias Moynihan asked the Minister for the Environment, Climate and Communications the measures he is taking to achieve the 500,000-home target by 2030 under the home energy upgrade programme; the reasons identified by him as to the levelling-out of uptake under the scheme; the measures to be taken on the issues identified; and if he will make a statement on the matter. [17992/25]
Tá spriocanna dúshlánacha leagtha amach chun athchóiriú a dhéanamh ar thithe cónaithe agus iad sin a bheith ullamh faoi 2030. An mbeimid ábalta na spriocanna sin a bhaint amach nó an bhfuil aon bhac ann gur féidir a chur ar leataobh?
There are ambitious targets set out for more than 500,000 homes to have been renovated by 2030. Is that on target? Has the Department identified any obstacles that need to be removed to reach it?
Gabhaim buíochas leis an Teachta as ucht na ceiste a ardú ar an ábhar an-tábhachtach seo. I thank the Deputy for his question on this very important subject. As he knows, Ireland has one of the most ambitious home retrofit targets in the world. The national retrofit plan sets out how these targets will be met, including with an €8 billion financial allocation in the period to 2030. I met my British counterpart, Ed Miliband, recently in Liverpool. The British Government is struck by how advanced our retrofit programme is and by the funding we have put behind it in comparison with its own. Across Europe and in comparison with our nearest neighbour, the commitment we have to home retrofits is second to none.
A range of measures has been introduced under the retrofit plan in recent years to support the achievement of the targets, such as enhanced SEAI grant schemes with simplified application processes and faster approvals, including a greater focus on heat pumps. As I have discussed with the Deputy, I am having another look at those grants. It is appropriate that I do so to see how to make them even more accessible and that I look at the structure of the grants and, in certain areas, the grant amounts to help us continue on this journey.
Last year, the Government, through the SEAI, supported 54,000 home energy upgrades, an increase of 13% on the previous year. This year, a record budget of €550 million of Exchequer funding has been allocated to the SEAI, which will support more than 64,500 home energy upgrades and build on the momentum seen in recent years. I have met representatives of the SEAI on three occasions, since I came in as Minister, to look at the grant schemes. I charged them with coming to me with an options paper, which I have just received. I will go through that in detail and meet them again in early May. The grant schemes are very good. They are having an impact, and I want to see if we can improve them further.
I thank the Minister. I will focus first on lower income households, where the free home energy upgrades, under the warmer homes scheme, would be expected to deliver. This time last year, it was taking eight to ten months to reach stage one, the BER assessment, and 26 months to get the overall works done under the scheme. By the middle of last year, it had slipped to ten to 12 months to get the BER assessment. We would expect that multiple BER-assessing contractors would be available around the country to support a slipping target. In my office, I am dealing with people who have been waiting up to 15 months with no contact for a BER assessment. Are the SEAI times correct? Is there something particular in Cork that is causing such delays? Will the SEAI, even if it needs to take on additional contractors, advance that aspect of the grant?
The warmer homes scheme is important because it focuses on lower incomes families. I am looking at this issue. For context, the average value of upgrades in 2015 was just €2,600. In 2024, the most recent year for which I have full annualised data, it was €27,700. Deeper upgrades mean more lower income homeowners can benefit to a greater extent from the scheme and the upgrades can tackle energy poverty by reducing their bills. Having said that, we need to look again at how we report those waiting times, particularly for the initial assessment. I am looking at this matter and have asked officials to look at it as well. There is a lead time to get a BER cert before an applicant can even get into the process. The waiting times are calculated from the very beginning of the application process to the completion of the works, whereas for the Croí Conaithe grant scheme, it is based on the application having come through the local authority and been processed and completed. I cannot control how long it takes a contractor to get out there. What we can do relates to the assessment, and I am looking at options in that regard. Private assessors and all of those types of things are on the table.
For people who do not qualify for the free schemes, there is a range of grants and loans. Depending on the age of the building and the size, quite a substantial job can be required. It could be anywhere from €20,000 to €70,000 to carry out a deep retrofit. While there is a grant, it is a big expense, with people even having to borrow, and there is a long payback. The time, the cost and possibly having to relocate, borrow or find alternative accommodation while the work is being undertaken are further challenges.
For many people, the sums just do not add up. Is it possible to increase the level of grant? In Denmark, the loan interest rate is closer to 1%, which would make it more accessible for people. So many people are just not going to be able to conduct the works.
Affordability is critical. If we look at it from a positive standpoint first, about 162,000 homes have been supported for energy upgrades and 55,000 of those are B2 upgrades. We have to look at B2 or B2 equivalents and where the house is going. To improve the energy and heating in a home, particularly in older homes, the cost of getting to B2 can be substantial, if not prohibitive. That is why the home energy upgrade loan scheme, which was launched last year, has been extended to seven credit union groups and there are two new lenders of that money, namely, An Post and Permanent TSB, as well as Bank of Ireland and AIB. Applicants can get a long-term loan of up to €75,000 at an average rate of 3%. That is a very keen rate, and while it is not as keen as the rate in Denmark that Deputy Moynihan mentioned, some loans are actually below 3% and there will be a lot of competition in the sector. With the grant that is available, which is substantial, the low-interest loan and the payback for the homeowner through reduced energy bills and more efficiency, it is a very good proposition. I want to improve it further and I am assessing that right now.
