Ceisteanna Eile - Other Questions
105. Deputy Paula Butterly asked the Minister for Climate, Energy and the Environment to provide an update on capital investment allocations for electricity grid upgrades under the national development plan; and the way in which decisions support Ireland’s renewable energy targets and security of supply [69909/25]
View answerCan the Minister provide us with an update on the capital investment allocations for electricity grid upgrades under the national development plan, and the way in which these decisions support Ireland's renewable energy targets and, most importantly, our security of supply?
I thank the Deputy for her question. In July, the Government approved a €3.5 billion investment in Ireland's electricity infrastructure across 2026 to 2030 as part of the revised national development plan. This represents the largest single investment in the country's electricity network in its history. Some €1.5 billion was transferred this week from ESB Networks to support investment in the onshore electricity grid. The Electricity (Supply) (Amendment) Bill, which was enacted in November, provides the mechanism for making the investment in ESB. As part of the oversight measures in place, the Minister, Deputy O'Brien, will receive quarterly monitoring reports as to the expenditure of the investment and progress on delivery of the overall price review, PR, 6 investment programme. A further €2 billion will also be allocated to EirGrid over the next five years to support the financing of its offshore electricity grid investment plan. The mechanism for making this payment will be agreed and legislated for separately next year.
The Commission for Regulation of Utilities, CRU, also published its final determination on price review 6 this week, which paves the way for a historic investment of over €18.9 billion in Ireland's energy infrastructure. This represents approximately two and a half times the spend under the previous price review period, PR 5. The equity investment in both ESB Networks and EirGrid will support the financing of this unprecedented investment over the next five years. The Government equity investment will also support the integration of renewables and help to reinforce vital energy infrastructure across the effects of extreme weather events, thus enhancing the country's energy security. Extending and reinforcing the grid will ensure that every home and business has a reliable and secure source of electricity, including the 300,000 new homes the Government has committed to build by 2030.
I welcome all these updates, in particular the largest investment. I also welcome the fact that this is going to be monitored and that the Minister will receive quarterly reports because without a robust energy delivery, we are going to find ourselves in great difficulty going into the future. For example, the Minister, Deputy Burke, launched in May 2025 the Silicon Island project. This is a very ambitious project. This is something that will take us into the realms of new jobs and new prospects for our economy. We need to have the nuts and bolts, however, and I believe this Department has the nuts and bolts for every other Department to work efficiently. If we do not have that Department working not just efficiently but delivering efficiently, then we are not in a position to progress new jobs, such as in semiconductors. We will not be able to deliver new houses like, for example, phases 3 and 4 of the port access northern cross route, PANCR, in Drogheda, which suggests 700,000 homes.
I thank the Deputy for raising this important matter.
My dual roles as Minister of State in the Departments of enterprise and climate and energy are very much aligned in the context of policy. From an enterprise perspective, we have the policy of propelling prosperity. Within that is the provision of unprecedented investment through ESB Networks and Eirgrid. This will provide over 500 projects under price review 6, more than 181 km of new overhead lines, 319 km of underground cables, nearly 70 substations and the replacement of over 50,000 poles. As the Deputy stated, it will be the accelerant for us to deliver with regard to new homes, supporting enterprise and industry, reducing our curtailment and strengthening the security supply. We all know - even in Louth - that there is major industry which requires a strong energy supply. The private wires legislation we will be enacting next year will be an important benefit for many of these sectors.
The M1 corridor is uniquely positioned to attract new FDI. We have the lands and talent, as well as the proximity not just to two large cities but also the airports. This is an area in which I welcomed, during engagement throughout the summer with ESB Networks, its announcement of a commitment to invest €90 million. That will take us into the next five years but not the next ten years, however. It is about continued investment. It is great to have a plan for the next ten years, but we must think longer term than that. We must continually invest. Those quarterly reports will be essential to delivery, and it will all be about delivery. A total of 7,000 homes are ready to be built in Drogheda around the port access northern cross route, PANCR, and IDA Ireland is ready to develop the lands and attract FDI. None of that will happen without a secure supply of electricity.
I could not agree more. This certainly is the most ambitious energy infrastructure programme we have seen in decades. It is akin to the rural electrification scheme. It will certainly put Ireland in a strong position in terms of our competitiveness. It is also required because industry leaders are looking for certainty and security of supply.
We also need to build resilience into our network. I am delighted to see that the private wires Bill has been approved for drafting this week. That will unlock much needed private investment and speed up the clean power connections. A lot of work is being done by the Departments of enterprise and Climate, Energy and the Environment. A core element of that work is to ensure that we have connections for the 50,000 new homes that we will be building every year up to 2030 because we know how important good connections are for many areas right across the country to try to boost that supply.
106. Deputy Matt Carthy asked the Minister for Climate, Energy and the Environment the number of rPET pellets produced in the State; the amount of this product utilised within the State and the amount exported. [72997/25]
View answerI have raised on a number of occasions issues relating to rPET plastic recycling in this State. With the introduction of the return scheme, which imposes a deposit charge on consumers every time they buy a plastic bottle that they then need to recoup, we need to ensure there is full transparency when it comes to all plastic that is collected under the scheme. Will the Minister of State detail the statistics relating to the number of rPET pellets that are recycled and produced in this State?
I thank the Deputy for his question and interest in this area. As matters stand, there are no official statistics confirming the number of rPET pellets produced or utilised in the State or the amount exported from the State. While statistics for the recycling of plastic packaging waste are reported to Eurostat by the EPA on an annual basis, the EU’s list of waste codes does not isolate individual polymers and, therefore, it is not possible to establish how much of this PET material is in existence. This is a shortcoming in the system and Department officials have engaged with the European Commission in relation to expanding the list of waste codes to provide greater granularity for plastic polymers.
Ireland does not have some facilities which convert PET waste into rPET flakes or pellets, but we do not currently have a facility producing pellets of a food-grade quality. Due to strict EU food safety standards, rPET to be used in food or drink packaging must meet the highest recycling standard to be of food grade.
Prior to the introduction of the deposit return scheme, PET plastic waste collected through our waste collection system was mostly recycled abroad. Since the introduction of Re-Turn, the deposit return scheme, DRS, operator can confirm that in 2024, it collected a total of 12,057 tonnes of PET plastics, which were sold on the open market. A total of 4,037 tonnes of material, which equates to 34%, was bought by companies in Ireland.
For the first time, a separate and high-quality stream of PET is now available for recycling. Together with the requirement under the single use plastics directive to incorporate 25% of recycled plastic into PET beverage bottles from 2025, rising to 30% from 2030, the opportunity to invest in Ireland's circular economy has been boosted significantly.
The deposit return scheme means that ordinary people are charged an additional cost every time they buy a plastic bottle and then they have to go to what is often a huge inconvenience of gathering the bottles to retrieve their deposit. There have been a lot of unforeseen consequences. For example, people's household waste charges have increased because domestic collectors are not, as was previously the case, receiving plastic bottles when collecting waste. With schemes such as this, we need to be careful that consumers and the general population do not see this as a burden rather than a mechanism to increase recycling and improve the circular economy. This is not helped by the fact that almost 70% of the plastic that is collected is exported to third countries, despite the fact that we have companies in Ireland, such as Shabra Plastics and Packaging Limited in my constituency, that have the capacity to recycle this product. Will the Minister of State take a hands-on approach to ensure that we increase significantly and substantially the amount of plastic that is recycled in this State under this scheme?
I reassure the Deputy that Re-Turn has collected over 12,000 tonnes of this PET plastic, 34% of which, as I said earlier, is purchased by Irish companies. Separately, we have Repak, which funds the recycling of over 8,300 tonnes of plastic, 42% of which is reprocessed in Ireland. Is it enough? We need to do more and that is widely acknowledged. Certainly, with the introduction of the DRS, we have made a significant step forward with regard to fully recognising the stream of product that we have as a result of having a dedicated collection system for PET recycling.
We also recognise that we need to continue to invest in recycling infrastructure. That must grow and that is why, through the extended producer responsibility, EPR, schemes, Re-Turn and Repak are now investing in their domestic capacity. We are engaging with Re-Turn with regard to a bottle-to-bottle PET plant. Certainly, we want to have more domestic capacity for recycling.
The lack of information and movement coming from the Department in this respect are completely unacceptable. The Government was quick to impose this charge on consumers but it has refused point blank to impose a charge on the use of virgin plastic, for example, something that would put a burden on the companies that are using virgin plastic, which is non-recyclable plastic. There are companies in this country that have the ability to recycle this product but Re-Turn sells the plastic to the highest bidder, regardless of the purpose or country. It means that people who are thinking they are doing the right thing recycling their plastic bottles can see their product going half way across the world in a way that no one could describe as being environmentally responsible. I will ask the question again.
Will the Minister of State take a hands-on approach? Rather than just taking the word of Re-Turn or Repak, will he ensure his Department is fully across every single detail and is not allowing something that is penalising Irish consumers or potentially putting Irish companies at risk by the actions that Re-Turn might be taking?
To be clear, the plastic that is recycled is traded on the open market by Re-Turn. The State is constrained in intervening by EU state aid rules. That is why we comply through the EU waste framework, ensuring there is a regulatory environment to support Irish recyclers. All operators in Ireland can play a role in that . It is a complex challenge and we want to continue to provide support. With the supply chain we now have through PET plastic, we can continue to work with the industry on how we can support companies here and reduce our reliance on the export market. This is why Re-Turn is actively planning a multimillion euro facility to bring bottle-to-bottle PET recycling to Ireland. That would be a game-changer for many reasons would present a real circular economy initiative, to the Deputy's point, avoiding the exposure to the export market.
The Government also needs to protect those Irish companies that are already recycling.
107. Deputy Paul McAuliffe asked the Minister for Climate, Energy and the Environment if he or his Department plan to make changes to the warmer homes scheme to allow alternative sources of home heating for older homes that require extensive home energy upgrading work and whereby a heat pump might not be suitable; if he plans to extend the scheme to allow for more targeted home energy upgrades whereby following a home energy upgrade inspection, the primary suggestion is only for home insulation as the current central heating system is obsolete; and if he will make a statement on the matter. [73206/25]
View answerAs the Minister of State will know, the better energy warmer homes scheme is an incredibly popular scheme. Now that the Government has expanded eligibility to fuel supplement recipients more and more people are availing of it. The Taoiseach said that 26% of homes are eligible for the fuel supplement. The changes earlier in the year to the European Commission's rulings on state funding of replacement of fossil fuel devices is having an impact on the better energy warmer homes scheme. It is time for the scheme to be reviewed to reflect that.
I thank the Deputy for the question and for his interest in this important area. The warmer homes scheme aims to improve the energy efficiency and warmth of homes owned by people at risk of energy poverty by providing fully-funded retrofits. The scheme is operated through the SEAI on behalf of the Department and is funded through the carbon tax receipts and the European Regional Development Fund. The scheme seeks to reduce the volume of energy a household needs by reducing heat loss through the installation of insulation and ventilation in the first instance, before moving to replacing heating systems where required under building regulations. This is in line with the fabric first and energy efficiency first principle and best practice.
There are a number of home energy improvements offered as part of the scheme. The upgrades recommended for a particular property depend on many factors including age, size, type and the condition of the property. For each eligible home, the SEAI’s technical surveyor determines which upgrades can be installed and funded. The SEAI is currently piloting the installation of renewable technologies, including heat pumps, where major renovations are taking place under the scheme. These pilots are helping to assess the suitability of such technologies in the context of energy poverty and long-term value for money. The scope of upgrades under the scheme is kept under ongoing review and my Department continues to work closely with the SEAI to ensure we maximise the impact of resources available.
The Government remains committed to ensuring that low-income households benefit from Ireland's renewable energy transition and we will continue to work with Deputies to explore how best to integrate other technologies into our energy poverty programmes.
I appreciate the response. The most important point the Minister of State made is that this is a fully funded scheme. Unlike the other grant schemes available to local authorities under which the responsibility falls on the individual owner to decide how they will replace their boiler, this is a fully funded scheme and it is up to the SEAI to provide the solution. There is difficulty, however, for a number of people I have been dealing with who previously would have been eligible for the full scheme with the wraparound and all the rest of it. Because of this issue with the boilers I am aware that in one case the household ended up getting four LED bulbs and a bit of attic insulation. The SEAI needs to get better at having a solution in place. The example I gave was a gentleman called Bill in Elm Mount. He spent a year waiting for that decision and he was incredibly disappointed. Another lady called Monica is 88 years of age. She was offered a heat pump under the pilot scheme but she really was not sure what a heat pump was and there was no real explanation of how she could be helped. The SEAI needs to get better at putting in place a solution and explaining it to people when it is offered.
I completely agree. The first principle of the SEAI warmer homes retrofit scheme is all about reducing bills, improving comfort for householders and ensuring that the vulnerable are part of and very much protected within Ireland's renewable energy transition. We have made significant progress on budgets. We increased the latest budget to record levels with over €230 million now under the warmer homes scheme. That has delivered 7,743 free upgrades. If we look at where we have come from, the average cost per household back in 2015 was €2,600 but it is over €29,000 today because we are tackling the worst performing homes first.
To the Deputy's point, we are piloting the schemes in the ongoing review. More exploration is needed on how we integrate alternative technology for older homes to ensure those are protected.
The Minister of State is right that this scheme has transformed the scheme but because of that decision not to replace a gas boiler, a very expensive heat pump system is being put in place. That is fantastic for those who avail of this but that transforms the scheme itself and the cost of the scheme. It will mean that fewer people will have access to the scheme if those resources are used. There is a question to be asked: where the boiler is not replaced by SEAI, why they cannot just put in the insulation and leave the boiler as it is? People will be in a better and warmer home with the insulation going into their home and leaving the boiler as it is, or leave them to apply for it through a council grant or replacement parts. They are being excluded from the whole scheme because of the single issue of the boiler.
I had a public meeting on this. SEAI provided us with their mentor, a fantastic guy who came out. There is a lot of interest in this scheme, in the solar grants and in all that is available. Given the changes to the European regulations around carbon fuels and the changes to the scheme, it just needs to be tweaked to make sure that a really positive scheme continues to be positive.
I appreciate the points raised by the Deputy and I will take them back to the Minister and the SEAI. The replacement of oil and gas boilers has been a challenge in that EU laws prohibit us to incentivise fossil fuel boilers from 2025. New boilers cannot be installed or supported through grant schemes. Replacement parts can be supported through local authorities for sure but the scheme itself is constricted on the basis of the fabric first principle, which relates to insulation, ventilation and then more complex technology. We will take the points back that the Deputy has raised today and try to fine tune them to meet the concerns of his constituents and the wider public.
I appreciate that.
We are moving on to a grouping of Questions Nos. 108, 112 and 119.
I understood it was Questions Nos. 98, 102 and 109.
Can I clarify that with the clerk that it is the grouping of Questions Nos. 108, 112 and 119?
I am taking Question No. 108 on behalf of Deputy Louise O'Reilly.
Yes. The questions are in the names of Deputies O'Reilly, Séamus McGrath and Deputy Neville.
108. Deputy Louise O'Reilly asked the Minister for Climate, Energy and the Environment if he intends to implement a socially-just phase out action plan for the replacement of fossil fuels by sustainable energy sources; and if he will make a statement on the matter. [73018/25]
View answer112. Deputy Séamus McGrath asked the Minister for Climate, Energy and the Environment his plans to reform the home energy grants. [73000/25]
View answer119. Deputy Joe Neville asked the Minister for Climate, Energy and the Environment the steps his Department will take to widen the number of people who have access to the SEAI grants for home improvement; and if he will make a statement on the matter. [73234/25]
View answerWe wish to ask the Minister for Climate, Energy and the Environment if he intends to implement a socially just phase-out action plan for the replacement of fossil fuels by sustainable energy sources, and if he would make a statement on the matter please.
Perhaps the Leas-Cheann Comhairle will give me guidance as to which of the three have an opportunity now or what way does he want it.
I could not give the Minister of State guidance, for God's sake. You would not take it anyway.
That disappoints me greatly as you have been a mentor of mine for many years here and I depend on your guidance in many other fora as well.
I propose to take Questions Nos. 108, 112 and 119.
The programme for Government commits to ramping up the achievement of retrofit targets through continued delivery of the Sustainable Energy Authority of Ireland's residential and community energy upgrade schemes. This includes revising and improving the provision of grants and financing models for homeowners who wish to retrofit to enhance energy efficiency and reduce costs, supporting group retrofitting projects and area-based approaches to retrofitting, targeting older homes still using oil to switch to renewable heating systems and considering the use of sustainable bioliquids to reduce emissions from existing home boilers where deep retrofits are not possible in the short term. These commitments are framing the work under way by my Department on continued delivery and development of the SEAI's residential and community energy upgrade schemes and the development of a heat policy statement and a roadmap to phase out fossil fuel heating systems. The SEAI has a number of schemes in place to support homeowners to upgrade their properties and move to renewable heating systems, thereby allowing homeowners to choose the best home upgrade option to suit their particular needs. These include a number of part-funded schemes and the fully funded warmer homes scheme.
Ensuring fairness to all and supporting a just transition are key principles underpinning the National Retrofit Plan. As an example of delivering on this, over the period 2022 to 2024, 64% of the total Government spend on residential and community retrofitting across our Department and the Department of Housing, Local Government and Heritage's schemes was invested in upgrading home energy performance for households at risk of energy poverty across privately owned, local authority and approved housing body homes. The Department continues to build on the progress achieved in recent years. Since 2019 there has been a record level of about €1.6 billion invested in SEAI schemes to support almost 240,000 home energy upgrades, including over 81,000 to BER B2, 18,000 heat pump installations and over 32,000 fully-funded upgrades for households at risk of energy poverty under the warmer homes scheme, which many of us are familiar with through the representations we get in our constituencies. In addition, the Department funded a further 14,300 local authority upgrades, including over 7,250 heat pumps, between 2019 to 2024.
Changes introduced to the SEAI schemes in recent years aimed at increasing the number of homes retrofitted as part of the Government's retrofitting schemes include: enhanced SEAI grant schemes, including expanded eligibility and higher grants; simplified application processes with faster approvals and a greater focus on heat pumps; an increased number of one-stop shops - there were 24 registered at the start of 2025 and a further two were added this year, bringing the overall total to 26 at the end of September 2025; a reformed warmer homes scheme for homeowners in energy poverty with expanded eligibility, increased depth of retrofit, a prioritisation of the worst performing homes and a higher number of homes supported; enhanced supports for retrofitting apartment buildings and flat complexes; new supports for area-based retrofit projects for mixed-ownership estates aimed at encouraging homeowners, regardless of requirements or means, to get a retrofit; a new pilot scheme to support the retrofitting of traditionally built homes; two pilot schemes aimed at informing approaches to increase the number of heat pumps installed; the new home energy upgrade loan scheme, launched last year with new lenders joining in 2025, is now enabling homeowners to avail of retrofit loans with interest rates as low as 2.99%; a tax incentive to encourage small-scale landlords to undertake retrofitting works while the tenant remains in situ; a reduction in the VAT rate for heat pumps to 9% and a 0% rate for solar panels - we all see how that has expanded the amount of solar energy that is now being captured on rooftops.; expanded obligations on energy companies to support homeowners and energy poor households to reduce energy use; measures to increase the number of workers with retrofit skills; and a procurement process to establish a new €1.2 billion contractor panel for the warmer homes scheme to be in place in by quarter 2 next year. This will support continued growth with a focus on scale, quality and output under the scheme.
Budget 2026 has provided record funding of €558 million for SEAI residential and community energy upgrade schemes next year. This is an increase of almost €89 million on the budget 2025 allocation. This funding is expected to be further supplemented with additional funding, such as an allocation from the European Regional Development Fund, which will provide for an increase in the allocation for the warmer home scheme. These allocations will be published as part of the Revised Estimates Volume later. This allocation will support even more home energy upgrades to make homes warmer, healthier and more comfortable, with lower emissions and lower bills. Increasing the uptake of energy efficiency upgrades and measures among homeowners is a key priority for our Department and as such, our officials, in partnership with their counterparts in the SEAI, continue to work to deliver in line with the National Retrofit Plan and the programme for Government commitments.
It is really important we get a just transition. The Minister of State will recall how Sinn Féin tried to get a proper definition of that when we were working on the 2021 climate Act and he and I were on the climate committee. As we move away from fossil fuels and transition to a greener economy, we have to ensure we do not leave anybody behind. The SEAI grants have been made available to people for them to retrofit their homes but it has been shown that tenants and the Travelling community cannot do so. It is not working for them or for people living in older homes. Clare O'Connor from Friends of the Earth was before the climate committee last week. She said those living in the least efficient homes cannot afford to upgrade them. What specific accommodation will the Government make to ensure households such as these are not left behind as we transition to a sustainable economy?
I thank the Minister of State for his response. I think we all agree reducing energy consumption at home is a critically important part of reducing our overall carbon output as a nation and of course reducing the costs for households of their energy use. Many households find the grants to be quite rigid and it is a case of perfection being the enemy of the good. For example, if a household wants to upgrade their windows and doors they have to undertake a full energy upgrade under the one-stop shop system. That can be very inaccessible for many households due to the cost involved, so I ask these grants be reformed in such a way they become more accessible and user friendly. I welcome the measures announced in the simplified process, a reduce loan cost and so on. They are all very important but especially with windows and doors, which are critical parts of reducing energy consumption in a household, the grants need to be looked at so there is not a requirement for a full-blown energy upgrade to avail of them.
Both Deputies show regular interest in this and have spoken on it in the past. The point about not leaving anybody behind is really important and it has been the focus. Deputy Cronin and I, and her party, are aligned on lots of issues. I sat with Deputy Stanley, a former member of her party, on that committee for years and certainly Sinn Féin was very committed to the transition, but we disagreed ultimately on how to pay for it. We sided with the idea of the carbon tax, the hypothecation of that fund and using that to assist people in moving forward. Sinn Féin had a different view but nonetheless recognised the importance of ensuring nobody was left behind. I felt at the time, and still do, that the carbon charge was a way of discouraging the long-term use of fossil fuels and taking that as a methodology to assist exactly the people the Deputy spoke about. What I outlined to her indicates, particularly with the warmer homes scheme, what we have done for people with low incomes, namely, classifying them as in the energy poverty category and targeting that.
The issue Deputy McGrath described has been raised with me, the Minister and the Minister of State, Deputy Dillon, on a very regular basis. Deputy McGrath and others have mentioned it in the House. The Minister is very cognisant of that and my understanding is he is working towards bringing some reforms in this area.
We would all like to do a deep retrofit that would get us in line. Most of us cannot afford it. We are paying our mortgages or are working our way through that. Windows and doors and a little bit of insulation can have a massive impact on emissions from homes, on reducing the cost of energy and on reducing the burden on society generally from the emissions and the generation of electricity and the difficulties around that. I will certainly take that point back to the Minister but he has already begun a process there.
The European Commission's 2025 country specific report stated that energy poverty has increased in Ireland and we now have the third highest household or consumer electricity prices in the EU when the add-ons are included. Much of that is down to our reliance on fossil fuels, which makes us susceptible to global price shocks beyond our control. Some 300,000 people are in energy arrears at the moment, with price hikes coming down the road with the PR6. The Minister of State mentioned carbon taxes. It was shown at the Committee of Public Accounts that carbon taxes are not being ring-fenced as was promised. We are meant to be climate neutral by 2050. The Climate Change Advisory Council said that by 2039 we should not be reliant on fossil fuels. How does the Government envision a complete phase-out of fossil fuels in Ireland? We are not getting there.
I call Deputy Séamus McGrath.
I thank the Deputy-----
No, the Minister of State should hold on.
There he goes again.
I am eager.
He is very anxious.
I am very anxious. I am nervous.
I thank the Leas-Cheann Comhairle.
I thank the Minister of State for his response. As I said earlier, the importance of reducing energy consumption for domestic households is critical, for carbon achievements and to reduce costs for households and our dependence on international energy importation. That is also an important part. Therefore, I welcome the reforms the Minister of State announced that are in the pipeline for these home energy grants. They need to be less rigid and become more accessible and the requirement for full-blown upgrades needs to be changed. It is critical that any improvement to home energy efficiency should be welcomed. We should not be putting unnecessary requirements, conditions and criteria in place, which can prevent people from accessing these grants. I welcome that and I urge the Minister of State to redouble his efforts to bring about these reforms as soon as possible so the grants are accessible to households and so we subsidise and welcome any improvement to the energy efficiency of homes.
Deputy Cronin highlighted the significant cost of energy and the impact it is having on households. We have certainly seen that. The Government has taken action, as the Deputy will be aware, by increasing the fuel allowance from the beginning of the year. We reduced the VAT, which is a help in addressing the burden, but we have to get to the core cost.
I answered a question earlier about the efforts that have to be made in terms of the wholesale energy markets and the price of gas. The Commission for Regulation of Utilities, CRU, on the direction of the Minister, is carrying out an investigation to establish whether there are issues with the market and whether there is potential for failures in the market. The International Energy Agency, IEA, indicated that the difference between the wholesale and retail cost is considerable and widening, particularly in the gas market and that sets energy prices generally. We are therefore looking at it from that perspective. However, the long-term approach is to try to ensure we move away from fossil fuels altogether and reduce the amount of energy needed in homes. I have already outlined the kind of approach we are taking to ensure people who are not in a position to do that upgrade get the State's support.
I thank Deputy McGrath for his comments. It is twofold. It is about having people in healthier, warmer homes that are less dependent on fossil fuels or even on renewable energy. If we can make the homes lose less energy, they will use less electricity and there will be less cost regardless of whether the energy is clean or otherwise. That is why the Minister, Deputy O'Brien, takes the view that this can be done incrementally and we can make progress. It cannot be that people have to do everything at once, because that is a turn-off for people financially. When they get to other side, having paid their mortgage, they often do not want to take on more debt so we will continue with that.
110. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the steps he is taking to make critical energy infrastructure more resilient to extreme weather events; and if he will make a statement on the matter. [72818/25]
View answerDeputy Farrell will take Question No. 110 on behalf of Deputy Pa Daly.
The Government has taken steps with immediate and medium-term impact to improve the resilience of critical energy networks. In February 2025, the Minister, Deputy O'Brien, asked ESB Networks to prepare a winter resilience plan to enhance the grid in the most vulnerable locations following Storm Éowyn. That plan was updated in October.
Core work undertaken includes remedial work to the network; work with Coillte and the Department of Agriculture, Food and the Marine to identify segments of the network that are at the highest future risk; replenishing emergency stock, spare parts and materials; increasing staffing levels and available contractor resources; and establishing formal mutual aid arrangements for extreme weather events. ESB Networks is also increasing the number of access officers who engage with landowners on forestry works. We are preparing legislation to enhance ESB Networks' powers to manage vegetation and the Government approved heads of a Bill in July. Work on advancing that legislation continues as a matter of priority.
While those measures will have crucial short-term impacts, for the long term, significant investment in the electricity grid will support overall resilience. On Tuesday, 16 December 2025, the CRU published price review 6, PR6, which sanctions investment in the grid up to 2030. The CRU has proposed approval of an investment of up to €18.9 billion, with a €13.8 billion baseline investment guaranteed. Under the 2024 national adaptation framework, a new suite of sectoral adaptation plans across 13 key sectors, including electricity and gas networks, were recently approved and published by the Government. The national electricity and gas sectoral plans align with the aim of the critical entities resilience directive, to enhance the future resilience of the energy grid to the long-term impacts of climate change.
Last night, thousands of households across Connemara were without power again. There was a storm and lightning. No one is going to blame the Government for lightening or a storm by any stretch of the imagination. However, we have a situation where every two weeks I get a text from someone who lives in Connemara to tell me the electricity has gone out again. Over the summer months, it is every month. Therefore, we clearly have an issue specific to the Connemara area.
The Minister of State mentioned Storm Éowyn and it was horrific, but equally Storms Bert and Darragh had serious implications for electricity and telecommunications in the Connemara area. We need a clear action plan from the Government now to deal with these crises as they are happening. Unfortunately, it does not seem like the work was done since last December and January to alleviate these pressures.
I thank the Deputy for raising her concerns on behalf of her constituents in Connemara. That is why we published PR6 this week, which is one of the largest investments in the history of the State. More than 500 capital projects will be delivered as part of the programme and, as I said earlier, we are placing resilience at the centre of this policy to ensure we can deal with energy emergencies and severe weather events. That is why we established the national emergency co-ordination group, chaired by the Department of housing and a co-ordinated with a national response. That certainly aligns with energy actions.
As I said earlier, we have introduced a number of operational measures and we need to continue to work with ESB Networks and EirGrid to build resilience into our network. We also approved heads of a Bill in July for the ESB Networks' statutory corridor powers because we have had difficulties in the past accessing major works.
That is certainly something we will prioritise into 2026.
To be very clear here, I welcome any investment that helps this situation. However, we need to be clear that there is a need for long-term investment because of so many decades of underinvestment in the basic infrastructure in Connemara. That is why we have poles that are pushed over on their sides and cables still on the ground. We also need to look at what can be done immediately to alleviate this situation. It does not make sense for areas to have power outages every two weeks. When there is a power outage or a bad storm, it impacts them for weeks. That does not make sense. The Minister of State cannot control the weather - I am not saying he can - but he can control how we respond to this. It is a year on from Storm Éowyn. I said very clearly at that time that while the Government could not have predicted it to be the way it was, urgent action was needed to ensure we do not leave ourselves as vulnerable again. I urge the Minister of State to take immediate action now, as well as having a long-term plan to alleviate these concerns.
We hear the Deputy loud and clear on this side of the House. I acknowledge the tremendous work of all the operators and workers within ESB Networks who have gone above and beyond. We saw that during Storm Éowyn when they reassured us that they were working day and night to get supply back to many households. That is why the Government has responded. We have allocated over €1.5 billion to ESB Networks. That was approved through the national development plan and legislated for last month. That will, in one sense, lower finance costs for ESB Networks. It will support the delivery at pace. We want to see that in west Galway, Mayo and all across the country. We want to ensure we have limited impact across the network when we have severe weather events. We will continue that investment over the next number of years. As I said earlier, unprecedented investment in our energy grid will support resilience and ensure we can get connections to those 300,000 homes we want delivered by 2030.
113. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment if he has conducted an analysis on the introduction of CBAM on the price of energy; and if he will make a statement on the matter. [72821/25]
View answerHas the Minister of State conducted an analysis of the impact of the introduction of the carbon border adjustment mechanism, CBAM, on the price of energy?
CBAM is an instrument implemented by the European Union to address the risk of carbon leakage. The EU's ambition is to become climate neutral by 2050. CBAM will aim to ensure that imported goods are subject to a carbon price equivalent to the carbon price of domestic production in the EU. CBAM affects the electricity sector by putting a price on emissions associated with electricity produced in countries outside the EU and imported into the EU. It aims to encourage sustainable practices and reduce carbon footprint. For electricity importers, compliance with CBAM initially involves reporting direct emissions associated with electricity production as an imported good from third countries on a quarterly basis, relying on supplier information.
The simplification package that was published in February and adopted in October permits the European Commission to more accurately reflect the carbon price paid, including for imports from Britain, which Ireland welcomes. CBAM is currently evolving at a rapid pace. The week ending 12 December saw voting taking place on some of the implementing regulations and acts, and other votes are to follow in the days and weeks ahead. At this time, until the exact details are clear, any estimation regarding the cost of CBAM in relation to electricity imports is likely to be inaccurate. Overall, CBAM provides an opportunity for the electricity sector to embrace sustainability and contribute to environmental protection by positioning businesses as socially responsible and environmentally conscious players in the market.
I thank the Minister of State for his reply. It is really important that this analysis is conducted. We import 70% of our energy. The EU average is 58%, so we are importing a lot more than normal countries. We are also importing more energy from Britain. The introduction of the CBAM will affect the prices that households, consumers and families are paying. The Government said that energy emissions will fall by up to 68% between 2026 and 2030 when compared with 2018, but that figure is misleading because we are relying more and more on imported energy. We do not know where that energy is produced so we cannot pretend the emissions have disappeared. It is a bit of a distortion. For the families who might be listening in, this is not about climate targets; it is about energy bills. Will the Minister of State tell us clearly whether CBAM will push up energy prices? If he cannot answer that question for me today, will he commit to doing an analysis on how CBAM will affect prices for struggling households?
Deputy Brennan has a question.
I am just coming in on sustainability. I really feel the key to this is the warmer homes scheme. It is an excellent scheme that is being operated at the moment by the SEAI. Will the Minister of State update me on efforts being made to reduce waiting times for people who have applied for the warmer homes scheme because this will be a key part of reducing the amount of energy consumed and meeting our targets?
They are two different topics but I will answer the first one.
I thought Deputy Brennan was coming in on this question.
He has chanced his arm.
Yes. I thank the Leas-Cheann Comhairle.
He has cleverly used his time.
On the first question, it is not accurate at this time to talk about increased energy prices. CBAM is still in a transitional phase. We are working very closely with the European Commission on adopting a simplification package - this arose in October - to clarify how we will be reporting and how carbon prices will be aligned. Until the Act is implemented or finalised early next year, any cost estimates would be speculative and misleading. We have a number of engagements with the European Commission. It is working very closely with the UK on how we carry carbon costs and how they are aligned to the EU emissions trading system price. We are very much focused on encouraging cleaner generation globally.
Deputy Brennan mentioned the excellent warmer homes scheme, which is supporting those who are finding it difficult to maintain rising energy bills. The scheme has one of the largest budgets into 2026, of over €230 million. It has been successful in that it has delivered over 7,700 grants to date. We are ramping up the number of contractors who can support the delivery of these warmer homes. We know how important it is to those who are waiting and who need these upgrades as quickly as possible.
I want to talk about price review 6. Households in Ireland are paying much higher prices - some of the highest prices in Europe - and more and more families are falling into energy poverty and falling behind on their bills. Under price review 6, households and small businesses will be asked to pay even more while the large data centres will be paying less. Household charges could rise by 28% while data centres, which use the most energy, will see their energy prices reduced by 20%. It is just not fair. It is actually egregious. At the same time that energy credits have been taken away from people who are struggling, energy companies that are making huge profits are getting a reduction. One way to ease this pressure would be to change the PSO levy and the network charges so that data centres pay their fair share. Will the Minister of State commit to a restructure of the PSO levy? Will he show that he is full of the Christmas spirit, as I was when I shared my question?
With regard to the Government's commitment, in recent weeks we have seen huge announcements about investment in our electricity and energy system. It is unprecedented and akin to rural electrification. Over €18.6 billion is being invested to reinforce our grid through a number of capital projects. Over 500 capital projects will be delivered right across the country.
We are very much focused on ensuring we can connect the over 300,000 new homes that we have committed to out to 2030, and on continuing to support enterprise and industry. We have heads of Bill for the private wires legislation coming before the House. That will go through committee and both Houses in 2026. It will certainly act as a catalyst for private investors to invest in electricity generation that can support many industries right across the country.
