Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Deputy Pa Daly is not here so we will move on to Question No. 78. I call on Deputy Ahern.
Deputy Daly has arrived. I am happy to allow him to take his question first.
Did we start a bit ahead of schedule?
No.
I am very sorry but I thought it was 10.26 a.m.
I am happy to let Deputy Daly go.
Energy Policy
77. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the reforms he is considering to the energy market in order to reduce high energy costs; the way in which the work of the NEAT task force is different from the energy poverty steering group; the timeline for publication of the interim and final reports; and if he will make a statement on the matter. [60266/25]
I ask the Minister for Climate, Energy and the Environment about the reforms to the energy market he is considering to reduce high energy costs. An interim report from the national energy affordability task force was published earlier this week. It was a disappointment to many because it identifies some of the well-known problems in Ireland's dysfunctional energy market but offers no solutions. Households are facing a fresh round of price hikes just as the Government rips away supports. They need action. This seems to be a tick-box exercise to distract from the fact that there is no intention to tackle the energy rip-off.
Deputy Ahern should not really have given way.
I thank Deputy Daly. First, this is an interim report. It outlines a lot of actions that are to be taken. Many have been taken. It was published in advance of the budget so that we could look at the short-term measures we could take. We acknowledge the increased energy cost pressures on businesses and households and commit to bringing forward measures to contain energy costs and, importantly, to also tackle energy poverty.
We have already acted on that commitment. The 9% VAT currently applied to electricity and gas has been extended to 2030, resulting in a saving of approximately €100 per annum for the average household. The fuel allowance has been increased to €38 per week from January 2026. That equates to an increase of more than 15% and will provide an additional €140 to over 460,000 households during the annual fuel allowance season. As the Deputy may know, eligibility for the payment has been expanded to include those in receipt of the working family payment, approximately 50,000 extra households. These are targeted support measures.
The budget provided a record capital allocation of €558 million for the SEAI. That is for its retrofitting programme and energy upgrades including solar PV. It supports the delivery of our national retrofit programme, which has retrofitted nearly 260,000 homes already. That is a permanent measure. It is an €89 million increase on last year's budget allocation. That means more funding than ever is now available to make homes warmer, healthier, more comfortable and less expensive to heat. These are permanent changes. Analysis carried out by my Department and the SEAI indicates that a household can save between €750 and €1,120 per annum by making changes to their house through the retrofit programme.
I recently met with the four largest energy suppliers and, following these constructive meetings, the suppliers committed to ensuring that hardship funds and focused measures will now be in place for any customers who find themselves in difficulty this winter.
One of the frustrating things about the report from the steering group is that it is just an interim report. We have been told there will be a roadmap. If you were to be cynical, you would say that we first had a report and will now have a roadmap that will not be published until some time in 2026. It is really the destination that we are looking for. The report reaffirms what we have been saying for a long time, which is that no more than lip service is being paid to the crisis and that, because the energy credits were ripped away, energy bills are set to soar.
The Minister mentioned energy bills. According to the report, energy bills will reach €1,900 with a real risk they will rise again, given what we saw over the summer. Our energy prices are already some of the highest in Europe. Net electricity prices are the highest while gas prices are the fifth highest. Households pay, on average, €350 per year more for electricity and €150 more for gas. There has been a spate of price hikes across the summer. Will the Government consider reintroducing the supports?
I have detailed some of the initial supports, which are targeted at households that need them. The retrofit programme is critical in helping us to decarbonise and making permanent savings for households and businesses. That programme will ratchet up even further. We established a task force in June this year. I always said there would be an interim report in advance of the budget to inform budgetary measures for this year.
That is not all of the work required. Energy prices are too high. There are reasons for that in Ireland. We are an islanded nation with a dispersed population. We need to invest further in our grid, which we discussed last night during the debate on the ESB Bill. We need to continue to expand renewables to have cheaper, greener energy in our system. We are doing well on that. About 42% of our electricity generation last year was through renewables but we need to expand that further, and indeed we will.
I will look at the structure of the network charges. There is a conversation in Europe on the spark gap and the fact we tag retail prices across Europe to the wholesale gas price, even though we are expanding our renewables. That is a European conversation because energy costs across Europe are a real issue for households and businesses. We are committing to doing everything we can to stabilise and bring prices down.
I am glad the Minister mentioned the discussion he is having with the energy companies. Many of them say they had to put up prices due to the network charges, but network charges only rose by about €29 this year. At a recent meeting of the climate committee, the justification for the price hikes by, for example, Energia came under scrutiny. There are concerns that these are being used as an excuse but we in Sinn Féin introduced legislation to enable the Government to hold energy companies to account and it was rejected by the Government. There is no point in sitting down with energy companies, who not only have to make profit this year, but have to make increased profit next year and the year after that, without proper structures to hold them to account and challenge their narrative that it is all due to the war in Ukraine or to network charges. They should be held to account and have to justify their price increases year on year and month after month.
I think we agree this is an issue. I know this is an issue and the Government is aware this is an issue. We have already taken measures, which I outlined in my initial response, but we have to go further.
Work is happening at an EU-wide level. We have to look at the electricity market design and the Regulation on Wholesale Energy Market Integrity and Transparency. They are matters I have raised at European Council meetings. There are discussions at European level.
We need to expand renewables and ensure the households that need assistance get it. Energy credits could not be sustained into the future. Supports worth €3.5 billion were given. I would rather invest that money in structural reforms. We are putting that €3.5 billion into equity in ESB and EirGrid to enable them to leverage to invest further in our grid and deliver projects like the North-South interconnector, which is absolutely needed for resilience and to drive down energy prices in this country. We need that investment in our grid but I assure the Deputy that those who need assistance will get it. I have met the energy companies directly. A number, like Electric Ireland and Yuno Energy, did not put up their prices but they have re-established the hardship funds at my request to assist households that need assistance most.
Land Issues
78. Deputy Ciarán Ahern asked the Minister for Climate, Energy and the Environment to confirm if he has received the land use review phase 2 report; the reason he has not yet released the review; when he plans to release it; and if he will make a statement on the matter. [60840/25]
We are in the teeth of a climate and biodiversity crisis. An initiative the last Government took was to commission a land use review to understand how to optimise land management in this country. Has the Minister received the phase 2 report of the land use review? Why has it not been released yet? When does he plan to release it?
I thank the Deputy. The programme for Government, Securing Ireland’s Future, recommitted to the national land use review. The first phase, led by the EPA, was published in March 2023 and focused on evidence gathering.
The final report for phase 2 - the report the Deputy referred to - is entitled A Living Land and has been received by the Minister for Agriculture, Food and the Marine, Deputy Heydon; the Minister of State with responsibility for housing, Deputy Christopher O'Sullivan; and myself for consideration. I was also briefed directly on it and met Geraldine Tallon, chair of the oversight group, who carried out some excellent work. I thank her for the work she has done.
The purpose of phase 2 was to compile an evidence base and to present a framework to inform and support policymakers like us and landholders in decisions about future land use in the context of achieving Ireland’s agricultural, socioeconomic, climate and environmental objectives. As part of the review process, the citizen engagement working group proposed that there should be a focus on what can be learned from existing and emerging place-based pilots and programmes. The review highlights learning from multiple excellent examples of creative and inspiring community- and farm-level projects that are addressing and delivering on environmental and socioeconomic objectives.
Analysis of national and international best practice is a key feature of this report. While A Living Land is not an articulation of Government policy or strategy on land use, given the many economic, environmental and social considerations to be balanced when considering land use, the report will inform and support future considerations. The report also outlines the importance of Government leadership in leveraging the role of State-owned lands to achieve integrated land use objectives and the role that public bodies can play in this.
I am working with ministerial colleagues with a view to publishing the report very shortly. I expect to publish it in advance of the end of this year. It is a detailed report. There is very good work in it and practical examples that we could scale up across the country.
I am glad to hear the Minister will be publishing it. His predecessor as Minister for the environment described it as the most important project in the previous programme for Government. It is vital that it be released. I am not quite sure why the Minister is holding on to it. It is a report designed to inform policymakers and I am not sure whether the brains trust the Minister has put together are the only ones who should be looking at it. I do not know why it has not gone to the Climate Change Advisory Council. It asked in September of last year for it to be completed. It could be sent to the Oireachtas committee. It could and should be scrutinised by every stakeholder.
Phase 1 of the land use review discovered that 78% of land in this country is held by private landowners. To the extent that we want to manage and plan how our land is used strategically, we have many people to bring with us. It is important they be brought into the process as soon as possible.
I assure the Deputy I am not sitting on the report. It deserves scrutiny and that actions be taken from it. That is the work I am doing with the Minister, Deputy Heydon, and the Minister of State, Deputy O'Sullivan. When we publish it, we will be able to show some exemplar projects in this country. Geraldine Tallon and her team looked across Europe at community-based, land-based projects and examples in Ireland came to the fore. Our job is to scale this up. I would like to see this go to the Oireachtas committee. It would be a good idea for the committee to look at and scrutinise it. The phase 2 report can guide us all as policymakers with regard to real community-based, land-based initiatives we can take.
The Deputy mentioned the 78% of landholdings in private ownership. When you look within the report, you see that the survey of land ownership is quite incomplete. That is not a criticism of the work done but it is about getting the data. One would think that if 78% of land is in private ownership, then 22% is in public ownership, but it does not stack up that way. More work needs to be done on that but I do intend to publish it. It is not just up to me, by the way. We need to publish it in conjunction with the Departments of agriculture and housing. I want that done before Christmas.
That is encouraging. There are many big decisions coming up that the report could inform. It is there to inform future climate action plans, some of which we have been looking at and reviewing recently at the climate committee. It strikes me it is also relevant to the nitrates derogation negotiations. It seems, based on leaks from the report, that there is talk of intensification of dairy farming in the south east of the country, where we already have huge water quality issues. We have previously discussed the issues around Lady's Island Lake this year. It is also relevant to the housing plan that will be published later this month by the Minister's colleague, the housing Minister, in terms of how and where we build, the push for councils to rezone around the country and the potential for urban sprawl where there is ad hoc building on land as farmers sell it up.
It strikes me that the sooner this report is released and worked on the better because there are a lot of big decisions at the moment that will be informed by it.
I appreciate that the Deputy is asking the question slightly in the dark because he has seen phase 1, but he has not seen the phase 2 report. I am genuinely anxious to get this report published so people can see what is in it. The Deputy mentioned the intensification of farming in certain areas. There are options in the report and certain scenarios are laid out in it, so it is not directing us as policymakers to do A, B, C or D. It is a very significant piece of work that has been done and it will absolutely guide us going forward. I will use this opportunity to say in the context of looking at land use that while people focus on agriculture it is important to note that agricultural emissions reduced again last year. There are many people in the agricultural sector, in the farming sector, who are really changing practices very well and are leading by example. This can actually help and I would like to see some of the particular examples scaled up. I am genuinely anxious to get this published. It is not in my gift alone; we have to do it in conjunction with two sister Departments. I want to do that before Christmas. It would inform a very good debate in the Oireachtas at committee but also, I would suggest, in plenary in this Chamber.
Energy Conservation
79. Deputy Pa Daly asked the Minister for Climate, Energy and the Environment the steps he is taking to ensure the 2026 to 2030 retrofitting and heat pump targets are reached; if he anticipates capital allocation for 2026 will be sufficient; and if he will make a statement on the matter. [60267/25]
In the last question the Minister mentioned the retrofitting and heat pump targets but the target to retrofit 500,000 homes to B2 standard and install 400,000 heat pumps by 2030 seems to be far behind. The Government has delivered just 12% and 3% of those targets. The Government has often said that investment and delivery will rapidly increase year on year, but the budget for 2026 tells a different story. The Minister said it was a record increase but it has the same capital allocation for retrofitting as the Revised Estimate for 2025 so it is actually a decrease on the promised capital investment of €641 million. Are the targets now null and void? Is the Minister going to accept that?
The Government and our Department are fully committed to making homes warmer, reducing energy bills and cutting emissions. We will do this through the retrofitting and heat pump initiatives set out in the climate action plan and delivered via the national retrofit plan, which is built on the four key pillars of demand, supply, financing and governance.
Since 2019 we have made significant progress. To date there has been over €1.5 billion in support to homeowners to enable over 228,000 home energy upgrades, including over 30,000 fully funded upgrades for households at risk of energy poverty. Local authorities have delivered a further 14,300 upgrades, including over 7,250 heat pump installations. These are real measures, real upgrades and real savings for households. In parallel, delivery quality is rising. Over 76,000 B2 level upgrades have been supported to date. For 2025 we have allocated over €550 million for SEAI residential and community energy upgrades, including solar PV. This is the highest ever. Budget 2026 provides €558 million from carbon tax receipts and an €89 million increase is expected to be further supplemented through the European Regional Development Fund to keep delivery moving at pace.
We are on track to stay within the residential sectoral emission ceiling for the first carbon budget period to the end of 2025 based on the most recent SEAI assessment. Targets and allocations for 2026 will be set out in the Revised Estimates later this year. Our focus is very much on sustained investment, strong governance and steady expansion of capacity in the supply chain. The Department is very focused on continuing to fund these upgrades and prioritising those who are most in need and we are building on the pipeline for 2026.
I am not sure the priority has been proven to be those who are most in need. It is not just me questioning the Minister of State’s statement that significant progress has been made. Social Justice Ireland has said the retrofitting scheme constitutes little more than a wealth transfer. The programme for Government made a number of promises to focus on lower income homes to have retrofits each year from 2026 to 2030 but since then there have been zero changes to how the grant scheme is administered and zero effort to tier the grants so that they can be directed at those who need it most because the upfront cost to a home is an astronomical €60,000 to €70,000 which is unacceptable and unaffordable to most people. Most people on lower incomes, especially those who use solid fuel, often in rural, older homes, are locked out of the scheme. It is a bit like the EV scheme where richer people in Dublin and Cork are availing of it more and not those who need it most.
Budget 2026 has provided increased funding. That demonstrates the level of intent in regard to a €89 million increase and we do expect additional European funding through the ERDF. This funding is very much needed now to make homes warmer, healthier and cheaper to heat. We are also matching that funding with capacity. We are enhancing the grants. We know we need to simplify the application process. We need more one-stop shops. We now have around 26. We have increased the deeper, warmer home supports. We have also looked at new area-based projects. The new home energy upgrade loan scheme has been provided at a rate of close to 3%. These are all initiatives that will build the pipeline we want to see in the coming years. Through the NDP review, we have provided a substantial allocation to support this.
I accept there is a need to simplify the process because it seems to me there was a lack of planning in that some news reports said householders were told to roll back or change their retrofitting efforts on the basis that they were in breach of planning permission. Only 355 loans have been approved over the last year. If the average loan is about €48,000 that is only €17 million which is far from the game-changing results we were promised. Again, the high concentration of loans going towards the east coast has led to far less uptake in the rest of the country when that is factored into it.
The Minister of State also mentioned solar. The lowest income homes seem to be locked out of the solar revolution. Will the Minister of State take any steps to try and make the retrofitting more affordable, to tier it and to target specifically people in rural areas, older people who use more solid fuel rather than, as Social Justice Ireland said, a wealth transfer?
Again, we are in the process of simplifying the application process. We understand we need to do more to drive down wait times. We want to continue to deliver deeper, more complex upgrades at an unprecedented scale. The target for next year is over 60,000 upgrades and we are very much looking at accelerating that further. We have looked at cost inflation around much deeper upgrades. They have substantially increased from €2,600 ten years ago to over €29,000 now. There has been a surge in demand and we cannot ignore that but we have action under way in relation to increased budgets, extra SEAI staff, which is really important, and also a stronger contractor management system. I am very much focused on trying to get the target number of applications through to approval stage and allow many homes which deeply require these upgrades to get them in a more efficient manner.
Energy Prices
80. Deputy Jennifer Whitmore asked the Minister for Climate, Energy and the Environment to report on the outcome of his recent meeting with our largest energy companies, on 26 September 2025; and if he will make a statement on the matter. [59711/25]
Will the Minister report on the outcome of his recent meetings with the largest energy companies in September and make a statement on the matter?
As Minister, I meet with a range of stakeholders on important topics including energy prices, which is one of the most pressing. I can confirm that I have met with both the Commission for Regulation of Utilities, CRU, which is assigned consumer protection functions under the Electricity Regulation Act, and energy suppliers since being appointed as Minister. On 26 September 2025, I met with the four biggest energy suppliers in Ireland, Electric Ireland, Bord Gáis Energy, SSE Airtricity and Energia, at separate meetings. In addition to my interactions, my officials meet with suppliers on a regular basis. I intend to meet the other smaller energy providers like Yuno and others which have not increased their energy prices this year.
Following my engagement with them I have received confirmation that hardship funds for those struggling to meet their energy costs will be made available to households this winter. That was a direct request that I put to them. They acceded to that request and I am grateful for that. I stated in response to a previous question that direct measures by way of assistance, particularly to those who need it most, were brought forward in the budget. The energy companies need to play their part too. Arrears levels are too high. I am questioning some of those arrears, particularly on gas. I think there is an issue with some of the data there that needs to be worked through. It was a good meeting.
The CRU has also published enhanced customer protection measures for this winter. For the upcoming winter period, some of the key customer protection measures that will remain in place include a disconnection moratorium for reasons of non-payment, minimum timelines for debt repayment plans, discounted tariffs for financial hardship meter customers and a promotion by energy suppliers of the vulnerable customer register, which is critically important. I would encourage people who feel they are in that space to make sure they are on the vulnerable customer register. That is in addition to existing sources of support such as fuel allowance, the household benefits package and the additional needs payment scheme operated under the Department of Social Protection.
I will come back with further details in a supplementary.
We are all aware that electricity prices are crushing many families across the country at the moment. They are so high. We have among the highest electricity prices in Europe. Recently we were told by the International Energy Agency that our retail prices are three times higher than our wholesale prices. The savings the energy companies are making on wholesale energy are not being passed through to customers. We are seeing continual rises from the companies of between €120 to €220 on average bills, and that is despite their own costs going down. There is a question as to whether these companies are gouging customers. Indeed, the Government's interim report, the affordability report, made a recommendation that the CRU investigate price gouging by these companies. Did the Minister speak to these companies about price gouging and about them actually reducing their prices, not helping people pay their extortionate prices but reducing the prices for ordinary families across the country?
It is important to acknowledge that the largest energy retailer, Electric Ireland, did not increase its prices. I did discuss those very matters with the four companies in relation to their margins. The IEA report looked at the margin between retail and wholesale. It is not that the retail price is three times higher in Ireland than in other places. It is the margin. There are specific, unique characteristics to Ireland, particularly in relation to us being an island nation, the reliance that we still have on imported fossil, which we need to reduce further, and the fact that our energy retailers hedge and purchase forward. When we see a wholesale price decrease, I can fully understand people asking why the retail price does not come down straight away. The energy companies buy forward and they hedge. They will have purchased energy ten or 12 months ahead in some instances. That is why we do not see that decrease happening as quickly as we would like. I will continue to meet with the energy retailers on a regular basis. I have interrogated their pricing structure and I will be bringing forward further measures in the final energy affordability report, which I will publish in 2026.
In 2020, the average electricity bill was €976. It is currently €1,877. There is no way that is justifiable, even considering the special circumstances that Ireland faces and considering what happened in Ukraine. People are paying twice what they were paying five years ago and, as I said, the price that the companies are paying for wholesale energy is going down. It is now 75% lower than in 2022. Those savings should be passed on to customers and those companies are not doing it. It has been recommended by the Government's own affordability agency that the energy regulator conduct an investigation into price gouging by those energy companies. Will the Minister direct the energy regulator to put in place that investigation into price gouging by those large retailers and the energy companies?
The Deputy understands how the energy markets work. I am just stating it factually in relation to the time lag between wholesale price decreases and retail price decreases. There are unique attributes to Ireland. That said, energy costs are too high and we need to bring those prices down permanently. We are affected by geopolitical issues. Ukraine has had an effect, absolutely. Europe has had to pivot away, and rightly so, from dependence on Russian gas and oil. We are still importing a significant amount of our energy from third countries. That is why the expansion of renewables is so critically important, which we are seeing. There was another successful option just a number of weeks ago for onshore and the delivery of additional electricity, our electricity, our energy that is clean and generated here.
To answer the Deputy's question, work is ongoing on pricing. It is something I am watching very closely. That is why I have met the companies directly myself. It is important to acknowledge that the largest retailer has not increased its prices. We need to get prices down. We will do that by continuing to diversify our electricity market and electricity generation. That is why grid investment is so critical, including things like the North-South interconnector. If that was built, it would bring down energy prices for every household and every business pretty much straight away. Projects like that need to be delivered.
Wind Energy Generation
81. Deputy Richard O'Donoghue asked the Minister for Climate, Energy and the Environment if he will acknowledge that the High Court has now ruled in multiple cases that wind turbine noise can constitute a nuisance, even where developments are compliant with planning conditions; and his plans to ensure that Ireland’s regulatory framework adequately protects affected residents. [60859/25]
At the outset, I am not against wind energy. I am against the health implications of wind energy. Will the Minister acknowledge that the High Court has now ruled in multiple cases that wind turbine noise can constitute a nuisance, even where developments are compliant with planning conditions, and confirm the specific advice the Department received from the Office of the Attorney General in March 2024 regarding this matter? What are his plans to implement that advice to ensure that Ireland’s regulatory framework adequately protects affected residents?
I acknowledge that the Deputy is not opposed to renewable energy. I note the recent High Court rulings related to private nuisance claims and related awards of damages connected with noise from particular wind farm developments.
We currently have over 5 GW of onshore wind generation and in 2024, wind accounted for 33% our electricity demand. This is related to the previous question on pricing which I have just answered. Ireland has one of the best wind resources in the world. We are already among world leaders for installed onshore wind capacity per capita and we are a European leader for the integration of variable renewable electricity on the national grid. Meeting our national targets for wind energy will require further integration of renewable technologies in proximity to communities. This has to be done in an appropriate manner in full consultation with those communities.
Important related work is progressing, in collaboration with the Department of Housing, Local Government and Heritage, to review the existing wind energy development guidelines. The review is addressing a number of key aspects including noise, setback distance, shadow flicker, community obligation, community dividend and grid connections. In particular, my Department has been engaged on advancing guidance on the noise aspect of the draft guidelines to ensure they are robust and fit for purpose, having regard to our target to generate 80% of our electricity from renewable sources, and we need to get there, as well as the need to ensure adequate protection of communities and residential developments in proximity.
My Department, in the context of its environmental noise remit, appointed consultants in May 2023 to inform any amendments to the noise aspect of the guidelines. That work is now substantially complete. A strategic environmental assessment is being carried out on the draft guidelines as part of the review process. In this regard, I am advised the Department of Housing, Local Government and Heritage intends to undertake a public consultation on updated draft guidelines as part of the screening process, whereby all interested parties and, importantly, communities will have an opportunity to submit observations.
How many High Court judgments will it take before the Government accepts that wind noise is causing health implications? People and communities in Limerick are taking up their own alliances because of the health implications where wind turbines are put up. Wind turbine planning applications are being lodged at a massive rate. The wind turbines that have gone up to date never involved health organisations. The HSE was not involved in the planning applications of the ones that exist. They are ignoring the health implications. Again, I am not against wind energy. I am against locations that are causing health implications for people living in those areas. People are entitled to their own health in their own residence. All they are asking for is to have their health protected. We are not against wind energy but we are against locations where they are causing health implications for people.
Approximately 33% of our electricity comes through onshore wind energy. There are significant wind farm developments across the country, many of which do not cause any difficulty for any communities.
The same goes with solar. I have visited many of them as well. People need clean, green renewable energy that is affordable and affordability will be driven through renewables. That said, however, the noise element of the guidelines is critically important. I have updated the Deputy on where that is at. The adoption of revised guidelines will be a matter for planning. This is not me passing the buck; it is just it sits under the Department of Housing, Local Government and Heritage. We are working with that Department directly on that. That piece of work is nearly concluded. I would like to see it concluded because people need that type of certainty to see what is there. Technologies are changing for the better as well. That is why we need those guidelines updated too. There are real issues for some people in some communities but there have not been issues in many other communities and we need to make sure we can continue to drive on renewable sources of energy here. I will keep the Deputy informed of progress. People will get an opportunity to input into these guidelines when they go out on public display and I am certain the Deputy and many others, both in government and in opposition, will want to feed into them too.
I thank the Minister. Again, we are talking about health. The other side of things is that given the number of wind turbines that have been pushed through planning at the moment, it is not about wind energy. Cian Murtagh is a lecturer in Sligo and he has looked at Ireland’s energy mix. For the month of October, we paid €115 million in curtailment costs and over €300 million in the last three months, taking money from every household to give to people who are profiting from wind energy. This is a business case in terms of what people are doing. They are flooding the market with these now. How many of the wind energy turbines in this country are owned by Ireland? I believe 63% are owned by companies based in China. Our wind energy is a land-take and the energy will not be ours by the time it finishes. It will be gone to different countries.
Now I am beginning to wonder whether the Deputy is for wind energy or not, following his last comments. The largest renewable provider of energy in the country is Bord na Móna. That is a company that has pivoted and is an example of how a company can transition from fossil fuels and be a leader in the delivery of renewables on land we own as a State. We see that when we drive through the country. Curtailment costs are an issue and reducing dispatch down is an issue. Why is that? It is because the grid needs upgrading and we need more storage. We have about 1 GW of storage but we need more. Storage is critically important as well in order that we can dispatch energy when we need it. This is an issue, by the way, right across Europe and the developed world. It is not unique to Ireland. However, technologies are improving and we need to expand storage as well in order that we can release that energy, reduce curtailment costs and reduce dispatch down. That is going to happen. That is why PR6, which is the investment plan, will be published before the end of the year by CRU and will detail what investment we need. About €16 billion to €18 billion of investment in our grid between now and 2030-----
Offshore.
-----and that is critical. No, this is onshore.
But we need offshore.
We do of course but we need them to come through planning. We have five projects still in planning with An Coimisiún Pleanála and we are committed to offshore as well.
82. Deputy Naoise Ó Cearúil asked the Minister for Climate, Energy and the Environment the position regarding the acceleration of offshore wind development under the Climate Action Plan 2025, including progress on grid integration and planning reform; and if he will make a statement on the matter. [60514/25]
The climate action plan sets out ambitious offshore targets of 5 GW by 2030 and up to 20 GW by 2040. However, none of the offshore projects are yet operational as the Minister has mentioned and the first grid connections are not expected until 2028. Will the Minister outline how the Government intends to accelerate delivery, specifically the current offshore pipeline aligned with the climate action plan 2025 targets? What progress has been made on grid integration and planning reform to ensure those targets are actually met?
Gabhaim buíochas leis an Teachta Ó Cearúil as an gceist thábhachtach. I thank him for this important question. Our climate action plan specifies a target of 5 GW of offshore wind capacity by 2030. That is not going to happen but we need to ensure those projects are in construction and that is down to planning. This target will be met in the early 2030s through a combination of projects from phase 1 and from within the south coast DMAP. The five phase 1 projects with a combined capacity of 3.8 GW are in development off our east coast. Applications for planning consent for all five projects are with An Coimisiún Pleanála and are subject to planning consent. I anticipate that these projects will be in construction by 2030. There were significant further requests from An Coimisiún Pleanála on the five phase 1 projects, mainly related to very significant additional bird surveys. That is the reality, unfortunately, of where we are there but these will be delivered.
Separately, an offshore wind auction process for 900 MW under the Tonn Nua site off our south coast is under way right now. This site is within the south coast DMAP, which was approved by the Oireachtas and the Tonn Nua project is expected to be operational by 2034.
My Department is working towards further auctions to achieve our 2030 target. We had a successful RESS 5 onshore auction as well where we secured over 1 GW of onshore renewables. However, offshore is absolutely critical. We need to work these projects through planning and get them out of planning. I have met with the phase 1 developers. I meet them regularly. We saw auctions in Holland recently where there were no bidders at all. Ireland is still seen as a place that is very attractive for offshore wind following on from what the Deputy said. Therefore, there are measures we have put in such as the Maritime Area Planning Act. We need faster consenting through MARA and are working through revised processes in MARA, which are starting to bear fruit. The Planning and Development Act, which the last Oireachtas passed and which the Minister, Deputy Browne, is commencing through the course of this year, will make a big difference as well by setting the statutory timelines. Indeed, the transposition of the RED II and RED III directive, which we are engaged in now will also be critically important.
Gabhaim buíochas leis an Aire. We all share the same ambition but I fear there is now a growing gap sometimes between the aspiration and delivery. It is not just in relation to energy. We have been discussing this ad nauseam in terms of different areas of society. Seven phase 1 projects have maritime area consents, as the Minister mentioned, totalling around 4.2 GW, yet none are near construction. The delays in both grid readiness and planning are stalling process. I appreciate the Minister's involvement in trying to get things moving, particularly from a planning perspective and I appreciate how difficult it is. However, EirGrid's offshore grid connection policy is not due until 2026. It will be early next year, so not too far away. Developers still do not have clarity on connection costs or timelines. The maritime area planning regime, while welcome, has no statutory decision timelines. Anything around here needs timelines. An Coimisiún Pleanála lacks the resources and the expertise to process these applications quickly.
There are a couple of things there. We have an independent planning process. Sometimes it is a frustration for us, in that we want to see things delivered quicker but that is the reality. We have had people who will object to offshore wind as well. We respect the right of third parties. However, we have done things well too. If you look at onshore, which I have mentioned previously, we are a European leader in the integration of renewables into our grid. We are a European leader - and one of the world leaders; number two in the world - in relation to onshore winds. We have gone from about 7% of electricity generation through renewables just 20 years ago to about 41% or 42% last year. This shows what is possible. To be fair, the granting of onshore applications by An Coimisiún Pleanála in quarter 1 and quarter 2 of this year reached record levels. That is why we have had a very successful RESS 5 auction. However, offshore is really where we are going to see that absolute pivot. If we look at just those five projects, there is nearly 4GW. We have between 6 GW and 7 GW of onshore renewables. We will see in these projects alone what that will deliver. I will come back in on supplementary regarding MARA.
I thank the Minister. We need to look at introducing statutory timelines for consenting decisions and publish a delivery roadmap linking planning, grid and construction milestones. Without the joined up approach, we risk not only missing our 2030 targets but also the legally binding carbon budgets too, which is important to mention. It is not just about missing or meeting our climate targets. Offshore wind is Ireland's single biggest opportunity to secure our own clean energy, cut bills for families, as the Minister mentioned earlier, and build a new industry with long-term jobs along our coast. We have seen the success of onshore and of solar throughout the country and the expertise we have garnered in those two key areas. However, to realise the ambition, we need urgency and we need accountability from the various bodies in how projects can move from plans into generating power.
Regarding MARA, which I established in my previous Ministry, it has statutory timeframes for decision-making. The problem is it is not leading them. That is a problem. It is working towards that. That means the connection policy from EirGrid will also be published on time. I attend the offshore wind energy task force and, for the first time, I brought this sector into the room. Therefore, it is not just Government agencies. We have brought in the development sector and it is at all of the meetings. Instead of people writing back and forth to each other, or attending separate meetings, everything is dealt with in the room. That urgency is there. Certainly, the request for further information from the board, without straying into the planning process, was a frustration but it is an independent process that we need to, and do, respect.
As these come out of planning, our big focus has to be to get them into construction. While we are doing that, we are in the middle of our second auction, which I believe there has been good interest in. I intend to bring the results of that auction, once I receive them, to Cabinet in early December. I think that will show where Ireland is able to be successful with auctions where, unfortunately, other European partners are not at the moment.