Dáil Éireann Debate, Tuesday - 24 February 2026
141. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment in relation to private wires, the charging methodology that will be implemented; and the safeguards that will he introduce to ensure that all of the costs of providing the original grid connection will be recovered by the ESB Networks, and that these costs are not passed on to other customers. [14767/26]
Amharc ar fhreagraThis question relates to private wires. Will the Minister outline the new methodology that will be implemented? Will there be safeguards to ensure that all of the costs of providing original grid connections will be recovered by ESB Networks? Will action be taken to ensure that these costs will not be passed on to customers?
Under current proposals, any user taking all their energy capacity from a private wire will not be required to pay network charges to the system operator despite relying on the public grid for backup. We have been speaking about the energy costs and the price of the same. Will the Minister guarantee that households will not incur more costs?
It is critical that we get the legislation on private wires through. The Deputy is broadly supportive of what is proposed. It will make a significant difference here. The general scheme was approved on 16 December 2025. Since then, my Department has been engaging with the Office of the Parliamentary Counsel to the Government, OPC, to begin drafting the legislation required to bring forth the private wires regime. I assure the Deputy that introducing this regime is an absolute priority. From electricity generation to a point-to-point scenario, I believe that we can deliver further projects by using private wires. However, they are going to have to be up to the same standard that applies in the context of delivering our own grid.
The Joint Committee on Climate, Environment and Energy, of which the Deputy is a member, will undertake pre-legislative scrutiny of the general scheme of the private wires Bill this week. It is the intention that the eventual Bill will complete its passage through the Oireachtas as early as possible this year. I am aware that the committee is going to deal with the general scheme in a truncated manner. However, I ask those involved to note that it is critical that we get the Bill, when it is forthcoming, passed. I will be seeking co-operation from those on all sides of the House to see if we can do that as quickly as possible.
On the Deputy's question, the policy statement that was approved last July and that gave way to the introduction of private wires will require a review of the network recovery charges. The relevant methodology will be created in line with the private wires policy, ensuring that private wire entities will pay the full cost of the service they have sought from or that is provided to them by the national electricity grid. The general scheme introduces a licensing regime whereby the CRU can recover such costs and introduce a charging methodology. The specifics around that in the context of the potential for disconnection charges, a standby network charge and more will be outlined in subsequent regulations drafted by the Department. Effectively, there will be a cost-recovery mechanism in respect of those who deliver them and those who are using them.
We will be discussing that tomorrow. The concern of many members of the committee is that the proposals will exacerbate the regressive and inequitable way that network costs are currently distributed. According to Eurostat, Irish households have the highest electricity bills in Europe. As a result of the proposals being brought forward, households could be landed with a rake of new charges on their bills in addition to what they already pay.
The Minister mentioned about PR6 in reply to earlier questions. There is a new levy to fund LNG from increasing network charges on bills. Energy users and consumers are being hit from pillar to post with a host of new charges. They do not want to be subsidising the network charges relating to data centres, and we do not want to be obliged to do either. What will the situation be when it comes to mandating data centres that are proposing to have renewable energy when they are putting their own private wires in?
The large energy user policy is really clear when it comes to the future growth of large energy users such as data centres. They will have to bring forward 80% of that energy as new renewable energy. We are the first country to do this. It will not be a drain on our existing resources. It will be about providing additional renewable resources.
I have been clear with regard to private wires. Private wires should be and are a positive thing. They will unlock a lot of opportunities and investment. They will ensure the delivery of additional networks across our country that will be up to the same standard as our own grid. As already stated, the private wires entities will pay the full cost of the services that they seek from or that are provided to them by the national electricity grid.
In relation to PR6, which is the biggest investment that we have ever made in our grid, we are looking at, on average, about €18 per annum of an additional charge per household. That is about €1.50 per month. The North-South interconnector alone will deliver savings to households of over €100 per annum. That is why it is critical that projects of this sort are delivered. The cost to which I refer will be well offset by savings.
Is the Minister going to ensure that the North-South interconnector will be underground? That is the fundamental issue for people who live in Border communities.
On the basis of what he said, is the Minister guaranteeing that there will be no new costs passed on to consumers as a result of the private wires legislation? Consumers cannot afford any new costs. There is a concern to the effect that the private wires legislation will undermine climate obligations by diverting energy. We have seen in the past few years the increase from wind and the new energy coming onto the system, but it is all being gobbled up by the data centres and other large energy users. A fundamental concern is that this will continue despite all the efforts the Government and people are making in the context of onshore and offshore energy. One Minister even admitted that the Government has been sitting on its hands and navel gazing when it comes to offshore wind. We do not want that to happen.
Who said that?
Which one?
To be clear, there will be a cost recovery on private wires by those who deliver them. There will be no increase in costs. That methodology will be worked through. That will be discussed as part of the pre-legislative scrutiny that the committee will be going through tomorrow.
In the context of the advancement in renewables, if I go back 15 years, only 13% of our electricity was generated by renewables. At the end of 2024, it was over 40%. It is not the case that the increase in renewables is being gobbled up by data centres. That is simply not true. Our job is to accelerate the delivery of renewables, both solar and wind, and to get offshore into construction by the end of the decade, which we will do. That will be critical in the context of allowing us to meet our climate action obligations and targets. It can be done. Maybe not all by 2030, but there is real momentum in that space. There is real momentum across the renewables sector, both wind and solar. We are now seeing an advancement in biomethane, and work is also being done district heating. There is a lot to be positive about.
