Vol. 1087 No. 3
1. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment if he is aware of a new UN report on the environmental impact of AI (details supplied), which cites Ireland as a "cautionary example"; if he has plans to implement a grid prioritisation framework, as outlined in the EU Commission's guidance on efficient and timely grid connections in December 2025; and if he will make a statement on the matter. [44295/26]
The United Nations is citing Ireland as a cautionary example of what happens when Government policy fails to keep pace with the explosive energy demand from data centres and AI. We are not leaders or an example for the rest of the world but a warning. This did not happen overnight. It is a result of political choices, the lack of a framework and the lack of a plan. What is the Minister's grip on this? Does he have any plans to deal with the mounting criticisms of our approach to data centres?
Data centres are a very important part of Ireland's economic and digital present and future, and a key part of our value proposition for foreign direct investment. Data centres bring wider economic benefits, as most understand. They bring tax revenues, employment, broader digital infrastructure value and significant support and linkages provided to other high-value sectors of the economy.
The recent KPMG study on data centres, undertaken on behalf of the Department of Enterprise, Tourism and Employment, reports there are 19,500 directly employed in the industry. As detailed in our large energy user action plan, LEAP, Ireland's technology sector, underpinned by the very digital infrastructure in data centres, accounted for employing almost 183,000 people in quarter 4 of 2024. This is equivalent to 7% of Ireland's total workforce.
Unlike other European countries that have heavy industry bases, Ireland's industrial electricity demand is primarily concentrated in our digital economy. This is our core energy intensive industry.
I note the contents of the cited UN University report on Al energy, particularly on the need for responsible and informed capacity planning of the power system. The Government has for a long time recognised that data centres and their energy consumption need to be managed and planned appropriately. This is why we brought forward the Government's large energy user action plan in January 2026. It sets out a plan-led approach for very large and energy intensive investments. This will enable Ireland to capture next generation investment in energy intensive industries and unlock significant associated economic and employment opportunities.
The Commission for Regulation of Utilities, CRU, is responsible for grid connection policy and is accountable to a committee of the Oireachtas, not to me as Minister. Changes to connections policy, including those proposed in the cited document of the EU Commission, are a matter for CRU.
I agree that data centres are necessary in this country but it is a question of planning appropriately for what is there. The European Commission has already set out a clear pathway for a grid prioritisation framework, putting the public need, system readiness and climate obligations at the centre of decision-making. Here in Ireland we have an open season policy of first come, first served regardless of who benefits. Who is inevitably benefiting? It is the larger corporate and AI users of data centres. This is why the UN calls it a cautionary example. What does it mean for ordinary people, families and small businesses? They are forced to compete for electricity capacity in their own country and county, when a small number of large-scale operators are effectively being waved through without the prioritisation strategy that is necessary. We have been warning about this for years. Housing developments are being delayed, energy bills are being driven up and blackouts are on the cards. Does the Minister have any plan to insist on a prioritisation framework?
I welcome the fact that Deputy Daly recognises the importance of ICT, digital infrastructure and data centres. This is something on which most will agree. The most critical parts of this are the large energy user action plan and the CRU decision on large energy users, both of which are from last year. Both clearly set out what is required for a new data centre or a large energy user connection. This means for a new data centre to get an energy connection it is required to get 80% of its energy through new renewable sources.
There is a plan-led approach. There is also the grid investment through PR6, which is critical for all of our industries and housing. This is the €18.9 billion investment to 2030 and beyond. It is absolutely critical. We need to ensure that we remain at the cutting edge of new technologies. As I mentioned, digital infrastructure is our large industrial base. Unlike many other European countries we are not a large manufacturing country. This is something we need to protect. We have not had a situation where any housing has not been connected due to the growth in our economy.
I thank the Minister for the reply but one of the consequences is in relation to our energy security. This is not a theoretical difficulty any more. When the system is pushed to its limits the risk is not that abstract. What we have, and we have seen this already, are blackouts, supply disruption and emergency measures. This is what happens when a grid is under strain. EirGrid has been warning about it for years. The Secretary General warned of the dangers of the approach and said that we need to choose between housing and AI. Officials in the Department of public expenditure warned that data centres are pushing up household bills. Despite these warnings, not enough is being done to ensure security of supply so that no matter what the circumstances homes will be heated, hospitals will operate, businesses can function and energy bills are not driven sky-high, as they have been over the last number of years. We have seen that instead of securing supply first and managing demand, the Government is allowing demand, particularly from these centres, to dictate the system, and this is the imbalance that is happening.
I assure Deputy Daly they do not dictate the system. Connection policy is a matter for CRU, which is independent of me, which the Deputy knows. Grid investment is critical and we are doing that. Grid resilience is absolutely critical and this is why it is imperative that projects such as the North-South interconnector start and are completed as quickly as possible. I have already outlined what we are doing with regard to large energy users and we have published our plans in this regard. We also need to increase grid capacity and generation. What we have done in a ten-year period, when we look at generation of energy, is we have doubled wind capacity and there has been more than a 1,000% increase in solar, with a very good pipeline coming forward for more than 8 GW in renewables. This is where we need to get to. We need to ensure we are accelerating the deployment of renewables into our system and investing in our grid to make sure that grid resilience is there. There are backups to ensure the grid remains safe, such as fault ride through, which is there for large energy users also. This policy is one that is agreed by CRU in consultation with stakeholders.
2. Deputy Jennifer Whitmore asked the Minister for Climate, Energy and the Environment when he intends to introduce the strategic gas emergency reserve Bill 2025 to the Dáil; and if he will make a statement on the matter. [44871/26]
When does the Minister intend to introduce the strategic gas emergency reserve Bill to the Dáil? Will he give us an update on the progress of the Bill?
In March 2025, I received Government approval to develop a State-led strategic gas reserve. The delivery of a strategic gas reserve is critical to Ireland's energy security as we transition to indigenous, clean, renewable energy. Crucially, the strategic gas emergency reserve will also ensure compliance with EU standards and regulations and is consistent with our climate action plan.
The State-led, transitional nature of the reserve ensures that the risk of stranded fossil fuel assets is mitigated, that the reserve will be used for emergency use only, and that it does not support increased gas demand with a view to minimising impacts on greenhouse gas emissions. The Government remains committed to taking decisive action to radically reduce our reliance on fossil fuels and has greatly boosted the share of renewables in our increasingly electrified energy system. This, however, means greater reliance on gas to provide sufficient flexibility and backup for secure electricity supplies at times of low renewable output.
In line with the programme for Government priority, the approval to proceed with the strategic gas emergency reserve commits to exploring all opportunities to expedite delivery of the project. The gas reserve Bill that Deputy Whitmore asked about provides for an expedited consenting pathway to allow the next stage of delivery of the project. The Bill is being finalised, having completed pre-legislative scrutiny in February 2026, with a view to being completed, I hope, in this session. I will introduce it in this session and it is my intention to seek Government approval this month to publish the text of the Bill and to present the Bill to the Houses of the Oireachtas at the earliest opportunity thereafter. The general scheme of the legislation underpinning the operation of the strategic gas emergency reserve will be brought forward later this year. There will be two pieces of legislation, as Deputy Whitmore knows.
I thank the Minister for the update. As he knows, we had pre-legislative scrutiny at the committee and concerns were raised at that point. I want to refer to an article written by the previous Minister for the environment, Eamon Ryan, shortly after the start of this Dáil term when he was no longer a Member of the Oireachtas or a Minister. He was very clear that we do not require a floating LNG facility. As a former Minister, he was aware of the many details, discussions and reports that went through the Department, on which the Minister is also relying. He outlined a number of ways we could still secure our energy supply without relying on this LNG facility. I wish he had realised this when he first brought the plan forward. The strategic LNG facility was his proposal at the very start. I wish this work had been done at that point. However, it is important to be cognisant of what he has said. Has the Minister looked at his recommendations? This area moves quickly and technology moves quickly. It is an opportune time to review the policy.
I have been very clear that we need this reserve on a temporary basis. We have an oil reserve but we have no gas reserve. It is a significant risk to our energy security in this country. I have a lot of time for the former Minister, Eamon Ryan. I worked very well with him. On this item I do not agree with him and I say that in a very respectful way.
It is a risk that needs to be mitigated and that cannot be ignored. That is why, very early in this Dáil term, I set aside that policy decision with agreement from the Government. Very clear legal advice was received, twice, in relation to the energy security report, with a particular focus on this idea of banning certain types of gas. The legal advice stated that was not possible, not feasible and not legal, end of story. This needs to be done for our energy security and it is consistent with our climate action plan. I fully respect Eamon Ryan. He did a very good job across the portfolio. In this area, my job is to mitigate risk and protect our State, and this is why I am bringing this forward.
I think everybody agrees that we are an energy insecure country and that we do rely on external actors. That is very clear from the different energy shocks we have experienced in recent years. It is important that we shore up our energy security. The question is whether we require a strategic LNG facility to do it or if there is an alternative way to provide that energy security.
The former Minister, Eamon Ryan, based on the advice he received from the Department previously, is of the opinion that there is an alternative way to do that and this would be by using alternative fuels, battery storage and interconnector systems to provide energy security in the event that there were some catastrophic interruption to the gas pipelines coming into Ireland. That is a very unlikely event but it is a high-risk one. What came of the committee meeting was that the Government has not really looked at those alternatives. I ask the Minister to consider those alternatives.
The reality is that we are building more interconnections. We are building the Celtic interconnector now. I signed a further memorandum of understanding, MOU, with Spain in relation to exploring opportunities to have another electricity interconnector to continental Europe.
In the meantime, we are accelerating the deployment of renewables. I agree with the former Minister, Eamon Ryan, and that is what we are doing. In relation to storage, in our grid alone, we have over 1 GW of long-duration battery storage. This is the third highest capacity in the European Union. We do, however, need to do more. This will deal with demand flexibility and reducing dispatch down rates and allow us to be able to deploy our energy, and particularly renewable energy sources, at times when the wind is not blowing and the sun is not shining. It will be possible to store that energy and then deploy it. This facility will be used temporarily. It is to mitigate risk should something happen to our gas pipelines to Scotland. We only produce 20% of the gas that we use now and import 80%.
3. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the number of recent reports which confirm that Ireland has the highest electricity prices in the EU (details supplied); the measures he is taking to reduce prices; if he will reintroduce electricity credits; and if he will make a statement on the matter. [44296/26]
The Minister knows we have the highest electricity bills in Europe. Families are struggling with increased costs year-on-year. The Government is continuing to preside over a system where costs are driven up by poor planning, over-reliance on imported gas and an energy model that prioritises the large corporate demand, particularly from data centres, over ordinary customers. Can the Minister explain why we are paying so much, what the Government has done that allows infrastructure and policy failures to push up the prices and what reliefs it is going to provide now? I ask the Minister not to say, "the task force".
The Deputy is going to tell me what I am going to say now. The household energy price index, HEPI, report, which is referenced in the Deputy's written question, although he did not mention it in his remarks, tracks energy prices across European capital cities. When adjusted for purchasing power standard, PPS, this report shows that Dublin was the ninth highest for electricity prices in May 2026 and the 14th highest for gas prices. The report notes that purchasing power standards are an approach that eliminates general price level differences between countries. Meanwhile, the latest data from Eurostat, which compares electricity prices across the EU, shows Ireland ranked fifth highest for electricity prices and eighth highest for gas prices among European countries in purchasing power parity terms.
That is still too high. I do not deny that at all. It is important to note, however, that price setting is a commercial and operational matter for each energy supplier. Retail prices are influenced by several factors, including wholesale energy prices, system operational costs and supplier hedging. We are deeply aware, however, of the pressures placed on households and businesses by high energy costs. We have taken a number of steps to support households and businesses facing those increased costs. This includes the €750 million package of fuel supports announced in March, which is the largest per capita of any EU state. Budget 2026 had a range of other measures. These included the extension until 2030 of the 9% VAT rate currently applied to gas and electricity bills. There were also enhanced social protection payments, including an increase to the fuel allowance rate and an expansion of the eligibility rules, which applies to about a quarter of Irish households, and a record allocation of €640 million in Sustainable Energy Authority of Ireland, SEAI, retrofitting schemes. Those schemes are critically important. Since 2019, we have invested over €1.8 billion in retrofitting and we have been able to provide energy upgrades for 268,000 homes. These upgrades protect those homes and families from energy shocks and reduce their costs and energy consumption.
The Minister said, and we all agree, that energy bills are too high, whether we have the highest, the second highest or the fourth highest costs. We all know that energy companies are, of course, going to raise their bills year-on-year. They have an obligation to shareholders, and they want to make a profit not only this year but an increased profit next year and the year afterwards. The question is: when is the Minister is going to step in and tell them that enough is enough? I ask this because there is a lack of progress here. Energy suppliers had a recent spate of price hikes. One company raised its prices twice last summer. Once again, however, the Minister points to the insufficient measures, I think, contained in budget 2026. He did not, however, refer to the possibility of allocating energy credits, which we said would have been a temporary measure. The energy regulator warned that the withdrawal of these credits would lead to a spike in arrears, and that is exactly what happened. Is the Minister going to consider reintroducing energy credits as a temporary measure as part of budget 2027, given our prices are so high?
I am going to mention the work being done by the national energy affordability task force. I will report on that in July. That will give options for further changes and will feed into budgetary deliberations. I am not writing anything off regarding the budget. I will wait to receive that report. In the meantime, however, we have to ensure we accelerate the retrofitting programme I spoke about. If we look at solar, for argument’s sake, over 112,000 homes in this country now have solar systems. This reduces their bills permanently. It is also good for our climate as well as being good for people’s pockets and household bills. We want to keep accelerating this development.
Our continued overdependence on imported fossil fuel means we are going to continue to be over-reliant on them until we reach the tipping point on renewables. This means we will be at risk of volatility in the international fossil fuel markets. We are making good progress in this regard. About 50% of our electricity, month on month, is generated by renewables. We need to get that figure up to 80%. This is why we need to continue to accelerate the progress.
I am not writing anything off for the budget. We will decide that as a Government. The national energy affordability task force will conclude its work in July in advance of the budget.
Some progress is being made in offshore renewables but there is no State investment in it and we are way behind with it. Even one of the Government’s own Ministers said it had been sitting on its hands and navel-gazing about offshore wind for many years.
Who was that?
The energy credits were supposed to be just a temporary measure while the structural failures were being sorted out. It is not just Sinn Féin or other Opposition parties saying this. The International Energy Agency, IEA, has queried and called into question the huge gap between the retail price and the wholesale energy costs here. Even the Taoiseach himself has admitted that price gouging is going on. We have the biggest gap in the world and it costs three times more to buy energy here than it does to produce it. The ESRI agrees with us. It highlights that wholesale prices have fallen much more slowly here than in other European countries. I see what the Minister said about the VAT rate, the network charges and the other levies but it seems that nothing is being done to address this situation.
I have specifically asked the CRU to look at that pass-on of wholesale price reductions to retail, and that gap. I have written to the commission specifically on that matter to say it is something I want looked at. I am writing nothing off. I am not suggesting for a moment that the measures in the last budget were going to soften the blow of all price increases. They did not but they helped.
We are going to seek to help again where we can. We need to consider structural reform. I assure the Deputy, with regard to offshore renewables, that the only delay has been on the planning side. I am hopeful that we will get two planning decisions through this year and that we can move towards construction in this decade. That is what I have always said. The original plan was electrification by 2030. That was not possible because of delays in the planning process. That is why I brought forward, in the term of the last Government, the Planning and Development Act, which, I remind the Deputy, his party opposed at the time. We will be working on measures in advance of the budget, and that will be informed by the final national energy affordability task force report.
4. Deputy Ciarán Ahern asked the Minister for Climate, Energy and the Environment his response to findings in a recent report by Friends of the Earth that data centre energy demand added a cumulative €715 million to household electricity bills between 2015 and 2023 and could add a further €1.6 billion over the next decade; his response to a recent report (details supplied) on data centres commissioned by the Department of Enterprise, Tourism and Employment, and whether he accepts its claims regarding employment numbers and economic value; and if he will make a statement on the matter. [44852/26]
I ask the Minister for his response to findings in a recent report by Friends of the Earth that data centre energy demand added a cumulative €715 million to household electricity bills between 2015 and 2023 and could add a further €1.6 billion over the next decade; his response to a recent report from KPMG on data centres commissioned by the Department of Enterprise, Tourism and Employment; and whether he accepts the claims in that report regarding employment numbers and economic value.
Data centres represent critical digital infrastructure that is central to Ireland's modern economy. They strengthen Ireland's position as a strategic, knowledge-intensive regional hub for the ICT sector and also support broader retention and expansion of existing investment that supports billions of euro in economic value for Ireland via high-wage employment, tax receipts and the supplier ecosystem.
The Government's policy is supportive of continued sustainable data centre developments that are consistent with our twin digital and green transitions. The Value of Data Centres to Ireland is an independent report commissioned by the Department of Enterprise, Tourism and Employment that clearly demonstrates the significant role data centres play in our economy and draws on extensive consultation with relevant experts. It reports that there are over 19,500 directly employed in the industry.
As detailed in the large energy user action plan, Ireland's technology sector, underpinned by digital infrastructure and data centres, accounted for employment of over 180,000 people in quarter 4 of 2024, equivalent to 7% of Ireland's total workforce. This highlights that beyond their direct contribution to construction and operations, data centres play a critical role in enabling access to a wide range of digital-intensive sectors, enhancing the competitiveness of the Irish economy.
While data centres are large energy users, Ireland's industrial electricity demand – unlike that in other European countries, which are heavily industrially based – is primarily concentrated on the digital economy. This is a core energy-intensive sector and, as such, it reinforces the effectiveness of a plan-led approach for future development of the most energy-intensive industries, including data centres, as set out in the Government's large energy user action plan.
The environmental NGO report referred to by the Deputy is consistent with the Government position by underlining the importance of accelerating the deployment of renewable energy to remove gas-related cost effects driving energy prices. The Government has introduced a number of initiatives, including unprecedented investment in PR6 and ongoing co-operation in the acceleration of the infrastructure task force to support increased roll-out of renewables.
I thank the Minister of State. Of course, data centres have a role in modern society. No one would dispute that, but there is an important conversation starting about the costs and benefits. The benefits must be in proportion to the costs. Many of us in this House fear that the balance is being lost here. The Friends of the Earth report spoke to the costs that data centres are adding to our energy bills. We know of the strain that they are putting on our electricity grid, and that they are undermining our decarbonisation goals. What we are trying to do here is scrutinise the Government's industrial policy as much as its climate and decarbonisation strategy.
The Minister of State mentioned that data centres are important in retaining jobs and industry here, but the job figures quoted in that report were frankly embarrassing. There were 876,000 jobs linked to data centres. Was the Minister of State not at all embarrassed about that kind of figure coming out? The real figure – the Minister of State mentioned 180,000 jobs – is more like 19,500, half of which are in construction. I would like the Minister of State's response to that.
Again, we have done extensive evidence-based analysis. If the Deputy examines the Department's KPMG report, he will note it reflects the reality of Ireland being recognised as a global digital hub. I accept that the future pathway needs to be different, and that is exactly what we are implementing. We will no longer be in a position where the sector will be unmanaged. We will introduce a plan-led framework based on the large energy user action plan. That will align energy demand with renewable supply and ensure we have grid stability that is protected. We are also very much focused on accelerating renewable delivery. We will see onshore wind, offshore wind and solar generation capacity rapidly increase, with a target of over 80% by 2030. Along with that, we are introducing affordability measures, and the Deputy will see that in the energy affordability action plan that will be published in quarter 3 of this year.
We welcome regulation and planning in this area. Currently, 22% of our energy is going to data centres. That is going to be 30% by 2030. Even under the Government's current plans, it looks like 55% of our energy will be going towards data centres, if all the data centres that are in planning are built. What does the Minister of State believe is an acceptable proportion of our energy going to data centres? Is it 22%? Is it 30%? Is it 55%? Even 22% means we have five times more energy going to data centres than in the USA. It is 20 times more than in China.
The Minister answered a question earlier on energy security, but data centre strategy is undermining our energy security by increasing the gas demand in this country. Even if only 20% of the energy going into data centres is associated with gas and not renewables, it will double the peak demand for gas in this country. Again, it is undermining the Government's other strategies.
I take the points the Deputy has raised. As I said, that is precisely why we have moved to a more plan-led approach under the large energy user action plan. That is in place. We predict that by the end of the decade, 30% of our energy will be focused towards digital hubs and data centres. What does that mean in practice? It means new connections will be subject to strict conditions. It will also mean that on-site or contracted renewable generation will be required. That is very much focused on a demand-led approach with flexibility. Also, system supports must be provided by operators. Most importantly, data centres are now part of the solution in regard to renewable energy projects, grid connections and energy storage. We have a huge pipeline of onshore and offshore projects coming through. If we manage renewables, we will have less reliance on gas and a stronger grid. That is exactly where Government policy now is focused.
5. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment whether he believes the measures that the Government has taken will not be sufficient to reduce emissions to meet both our national and EU climate targets (details supplied); the measures he is taking to address this; and if he will make a statement on the matter. [44297/26]
6. Deputy Grace Boland asked the Minister for Climate, Energy and the Environment the additional measures under consideration to bring Ireland back on track to meet its carbon budgets and legally binding 2030 emissions reduction targets; and if he will make a statement on the matter. [44390/26]
Recent reports have stated Government measures will not be sufficient to reduce emissions in order to meet our national and EU climate targets and obligations. What measures is the Minister taking to address this?
I propose to take Questions Nos. 5 and 6 together.
We are committed to delivering on Ireland's responsibility to address the climate crisis, and work remains ongoing right across government, not just in my Department, to implement climate mitigation measures every single day of the week. My priority is driving implementation, particularly on high-impact measures with multiple societal and economic benefits.
Last month, the Environmental Protection Agency, EPA, launched its latest greenhouse gas emissions projections to 2030, which show that we are moving in the right direction and improving our performance compared with the previous year. For the first time, the EPA now projects that we are close to meeting our first carbon budget, following a consistent trend of improving projections for that budget over recent years. It is important to remember that in 2018, under existing measures, emissions were projected by the EPA to increase by 4% by 2030 because of population growth and economic growth, and that additional measures would reduce emissions by just 1%. Now, it is projecting a decrease in emissions of between 10% and 25% by 2030, which I welcome.
What we have been able to do is to decouple economic growth from emissions growth. We are seeing emissions reduce across many sectors while our population is growing and our economy is growing. We now have the lowest level of greenhouse gas emissions in 35 years, which is notable, given, as I mentioned earlier, we have 1.5 million more people in our country than we had then. More than 1 million new homes have been added since then. We also have over 1 million extra vehicles on our roads. As I mentioned, the important thing is decoupling growth from emissions. We are now world leaders in renewable energy. We have a higher rate of renewables integrated into our grid than any European state. We are more than halving the emissions in our electricity system, which is significant, and are now projected to reduce that by between 53% and 60% by the end of the decade. Emissions in agriculture are set to decrease by between 4% and 19% and emissions in transport are set to decrease by between 16% and 28%.
The EPA report shows that a significant increase in electric vehicles, EVs, last year has led to a significant change in the projections for emissions in the transport sector and we are seeing in the first five months of this year a further ramping up of EVs, in particular. Of course, we need to do more. I want to focus on the most impactful measures. That is why when I bring forward the climate action plan over the coming period, it will be more focused on the most impactful measures and will report on the ones that make the biggest difference. We need to try to bridge the gap to the target that has been set for greenhouse gas emission reductions by 2030. I have said in this House, and have said publicly elsewhere, that we will not reach that target by 2030 but we are moving towards it very well. We can get to that target in the early 2030s. For us in government, and indeed all of us in the House, it is about looking at the measures that we can take now, such as those we have discussed this morning, particularly the acceleration of renewables, the electrification of our country across sectors and the retrofitting of our homes and businesses. We must continue with the pipeline of projects we have, particularly offshore, and get them to construction.
We have seen from one year's projections to the next improvements. That is good. They are not enough to reach our overall target by 2030 but across sectors, we are moving towards the target significantly.
We accept, and the Minister accepts, that the small amount of money allocated for the new EV scheme, which is commencing on 1 July, is not going to address the issue. The way things are going, those funds will probably have been used up by the end of that month. Even though some money has been ring-fenced for rural areas, the scheme is not going to address the glaring need there.
The EPA has made it clear that even if the current measures were to be delivered, they will only cut emissions by approximately 25%. On the EU side, we are heading to approximately 23% when the obligation, as the Minister knows, is 42%. It is a policy failure. The consequence is that we could have up to €28 billion in fines, although the Minister has questioned that. We will have to pay some money towards carbon credit purchases. That money could be invested in communities and workers. Retrofit schemes are still too expensive. Rural communities are still facing rising costs and we have heard about energy prices. Workers and families have to carry this burden without clear, credible income supports and transition pathways. We need a just transition.
While I welcome the progress that is being made, the EPA, as it stands, is telling us that, at best, we are only going to meet half of the targets that we need to meet for 2030. What urgent additional measures is the Minister and his Department considering to try to bring us further forward in reaching our 2030 goals?
I would not dismiss what the EPA says and I have not done so. I welcome the work it does. We are taking measures that have been agreed at Cabinet and among Government members and TDs, such as Deputy Boland, who support the Government. We have changed the retrofitting grants, which has made a massive difference not only from a climate perspective in reducing energy use but also in terms of cost and affordability. Since the changes I brought forward in the first quarter of this year, there has been a doubling. There have been over 50,000 applications to the Sustainable Energy Authority of Ireland, SEAI, for home retrofitting and bringing about that retrofitting passport, to which Deputy Daly also referred, which means that you can break up the grants and make them more accessible. We are seeing people respond to that now, which is good. I want to see more of that. Nearly €670 million has been allocated to that. I want that money invested and spent. Over 264,000 homes have now had energy upgrades. That is very good for climate, good for reducing emissions and very good for household budgets. There were approximately 5,000 business grants last year. I am working on measures to make those business grants more accessible, too.
I brought in another €40 million this year for EVs. There has been a substantial increase in the number of registrations of EVs. I have ring-fenced €10 million for the scrappage scheme. I have been clear that it is a pilot scheme. We want to see how it works. If it is over-subscribed, it is a success. We want to get cars that are 13 years old or older off the roads. I have ring-fenced 65% of that funding for rural areas, which I said I would. Friends of the Earth and others have welcomed the focus on rural areas in particular. I will monitor that. If the scheme is open for one, two or three months and is fully expended, we will go back and look at it again. That is just an example of the type of measures we are looking to bring forward.
Underpinning all of it is the acceleration of renewables. I will come back in with a supplementary contribution.
I know the Minister has been asked to do that in respect of EV cars and it is good that he is moving towards addressing an issue for which we have been calling for a long time, which is the prioritisation of rural areas. What about second-hand cars? It is still the case that for people who will be selling or scrapping cars, it is a small amount of money. How about a scheme for second-hand purchasers if, for example, it is their first time buying an EV? We need a just transition. We need free or subsidised retrofits for those who need them the most. If you are in a rural area or are an older person, you are unlikely to make that big outward investment to retrofit your home. We also need affordable public transport and more rural connectivity. We need income supports and protections for workers and families through the transition. I ask the Minister to address those points and to have more of an emphasis on older people and rural areas. As the Minister knows, one third of the money for EVs has up to now been given for cars that are worth over €55,000.
At a recent meeting of the Committee of Public Accounts, the Minister's Secretary General and I discussed retrofitting and delivering energy efficient homes. She acknowledged that is a real issue and there is a workforce gap. Has the Minister's Department made an assessment of that gap? What measures is he taking to address it?
The Minister mentioned an extra 1 million EVs on the road. What we really need is better public transport. In Fingal, as the Minister knows, we need better public transport. We need local buses to connect our sprawling towns with train lines. We need the electrification.
I ask the Minister and his very capable Secretary General to work with urgency to deliver all of these climate measures to ensure that we meet as much of our target as possible by 2030.
I thank both Deputies. I will try to deal with both of their interventions. Deputy Boland can be assured that everything we do is to try to accelerate the actions we are taking in relation to climate. It is the number one crisis worldwide. Ireland, as a country, has shown that it is able to pivot and change quite quickly. I used the example earlier that we have doubled wind capacity in under ten years. In 2015, there was 2 MW of solar energy in our system. By the end of this year, there will be 3 GW. What does that mean? Just 1 GW is enough to power 500,000 homes. That is where solar has moved quickly. We are seeing a rooftop revolution and well over 120,000 homes with solar panels.
I completely agree about public transport. That is where the national development plan that we all agreed is important. One euro of every four invested between now and the end of this decade is being invested in transport. There is a public transport deficit that we need to catch up with and address with major projects that the Deputy and I are aware of.
In the year before last, which is the last full year for which we have figures, there were 365 million public transport passenger journeys. People are responding. We need to accelerate projects. We regularly discuss the need to get new services in place. The Deputy can be assured that we will do that.
The rural focus on electric vehicles is something Deputy Daly has been calling for. I have also, as part of the additional funding I have brought forward, reduced the value of cars for which grants are applicable from €60,000 to €50,00 because I do not want to grant-aid luxury cars. We want to focus on middle income families and families who actually need that assistance. Under the scrappage scheme, the grant is €8,500. New EV cars can now be bought for close to €20,000. I will not mention which brands; people can have a look. There are good cars available there. I will keep an open mind on second-hand cars but we need to do this through dealerships for certification and application reasons. It is something we will continue to look at.
