Dáil Éireann Debate, Thursday - 14 May 2026
184. Deputy Carol Nolan asked the Minister for Climate, Energy and the Environment the projected decline in NORA levy income over the next five-ten years as fossil fuel consumption falls in line with net-zero targets; and if he will outline the contingency plans to maintain Ireland's 90-day oil reserve obligation without imposing higher costs on fuel users or further transfers from the levy to the Climate Action Fund. [35980/26]
Amharc ar fhreagraThe National Oil Reserves Agency’s (NORA) Strategic Plan 2026–2030 indicates that its stockholding obligation is expected to remain broadly stable over the lifetime of the plan, at approximately 1.6–1.7 million tonnes. While increased electrification of transport and heating should reduce oil demand, the decarbonization of the heavy freight sector and aviation are regarded as more challenging. These projections may, however, be influenced by evolving geopolitical and energy market conditions.
The profile of future NORA levy income will depend on a range of factors, including population and economic growth, energy efficiency measures, biofuel blending targets, fuel switching, and changes in transport patterns and consumer behaviour. For this reason, it is not possible at this stage to provide a definitive projection of levy income over a five-to-ten-year horizon.
Under EU law and Ireland’s obligations as a member of the International Energy Agency, NORA must maintain oil reserves equivalent to 90 days of net oil imports, except in circumstances where a stock release is authorised in response to an international or domestic energy supply emergency. In such cases, strategic reserves can be reduced on a temporary basis to support security of supply and market stability. As reserve requirements are directly linked to oil consumption and import levels, any reduction in levy income arising from lower fossil fuel use would also be expected to reduce the associated reserve holding costs. Accordingly, no contingency measures involving additional costs to fuel users or increased transfers from the levy to the Climate Action Fund are currently envisaged.
