Dáil Éireann Debate, Thursday - 18 December 2025
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]
Amharc ar fhreagraCan 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.
