Electricity prices and interconnection
Deputy Cathal Berry asked why electricity is so expensive, questioned energy security and the schools solar programme, and sought progress on interconnection. The Minister said prices are high mainly because of fossil fuel dependence and the dispersed network, and pointed to new interconnectors and the move to renewables as solutions.
Most people in the country are very much on board with the principle of the energy transition with the promise of cleaner, greener and cheaper electricity. To be fair there has been a lot of progress from a cleaner and greener point of view but there has been no progress at all from a cheaper perspective. Much research suggests that Ireland has the most expensive electricity in the European Union. I would be grateful for the Minister's thoughts and his assessment on that. Is it correct to say that Ireland has the most expensive electricity of the EU 27 countries? That is the first question.
Second, I was concerned by the testimony of the EirGrid CEO, Mark Foley, before the Oireachtas committee yesterday. He said he cannot get companies to build the new power plants that we need from an energy security point of view. That is a big issue from a security perspective.
Third and perhaps most concerning of all, there is a perception out there - I would argue a reality - that big energy companies are profiteering on the backs of ordinary people. I think that is a very dangerous narrative because it erodes a sense of fairness in the country and it undermines the covenant that should exist between the State and her people. On those three bases alone, I welcome the number of rooftop solar panels around the country at the moment. It is unrecognisable from four years ago before this Dáil convened and is making a big difference because it is addressing those three concerns - the cost, the energy security and-----
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I did not quite hear the Deputy's third question properly.
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It relates to the perception of whether the large energy companies are dusting down the ordinary people. Those are the three things - the cost, the energy security and whether we can cut out this middle guy, whether we can provide more solar panels for people and literally give power to people.
I want to focus on two programmes in particular. The first is the schools solar panel programme. It is an excellent programme in principle. Many schools applied for free solar panels a couple of months ago when it was announced. Where are we with that? Will there be a further roll-out for the rest of the year or next year? Will every school get some or is it just a pilot programme?
Last, ambition is very important when it comes to climate action. Would the Minister consider establishing another scheme for clubs around the country? The rooftops of clubhouses, pavilions and sports halls are ideal for solar panels in many instances. Would the Minister consider launching a new scheme that deals specifically with clubs? I know we have sports capital grants but we need a specific one for climate action.
In summary, is it true that Ireland has the most expensive electricity in the European Union? Where are we with the solar panels for schools programme? Would the Minister consider having a new discrete programme for sports clubs?
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I think there is a problem with the sound up there. We might see if we can do something about that. Maybe it is just the Deputy's dulcet tones; I do not know.
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Our energy prices are high in the European context but not the highest. There are two main reasons for that. One, particularly in recent years, has been our reliance on imported fossil fuel gas. That has been the main reason for us having very high prices compared with other countries.
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And then you closed down Bord na Móna.
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We are switching away from that. We are switching to renewables which will give us a stable, reliable lower cost option keeping money in the country rather than going to Russia, Iran or other countries where we import the gas from at the moment. The second main reason it is expensive is that we have a very distributed housing system and we have to get a power line to every single home. I did not hear Mark Foley at the Oireachtas committee, but I will go back and listen to him. Getting new power plants has been a difficulty and that is why we as a House intervened. We voted through legislation to put in emergency generation. I am glad to say the first set of that last year was fired up in North Wall and is providing backup to run our system. The second sets in Shannonbridge and Tarbert will be opened up in the coming months. We had to intervene, but I believe the market is still the best way for us to deliver power generation assets. We will continue to use the competitive market system that promotes investment in the renewable, cleaner alternative.
Large companies have made significant profits through the high-price period because of the war in Ukraine. That is why we introduced very significant supernormal taxes on them, windfall taxes. ESB, for example, has been particularly profitable. It is not all from the Irish market. It is very significantly profitable from the UK as well, which allows us to maintain investment here as well as there in a way that serves the Irish people. We have to be careful when we look at some of the headline figures as to where the profit is really coming from and where it is going.
The Deputy is absolutely right that the solar panels programme for schools is part of our transformation. Last year we had 30 times more solar power by the end of the year than we had at the start. In one year, we put up 1 GW of solar, which is spectacular growth in solar power. It is happening in so many different areas in so many ways. Schools is one of them. It is an important one as a signal, as a symbol and as a learning, as well as helping to reduce school costs. It is a 100% grant. We have started with the first nine counties, but every single county will be included and every school is eligible. For the first nine counties when we put out applications in the autumn, 1,600 schools were eligible, 1,400 replied and 1,200 went into the tendering process. They are starting to be built out. Every school in the country will be able to have it.
The Deputy asked about sports clubs. Some 70 sports clubs have already availed of the non-domestic support scheme for solar - up to €160,000 and they are already getting it built. This summer 200 schools will install EV charging points on a separate Department of Transport scheme because sports clubs form a huge part of our community. So "Yes" is the answer to the Deputy's question. Solar on both, along with EV charging, is going in as part of this change to our own domestic renewable power supply.
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I thank the Minister for his response. It is encouraging to hear about the schools programme in particular. It is good that roll-out is taking place. I just want to revisit the cost of electricity. The Minister acknowledged that we have an inordinately high cost of electricity here in this country. I emphasise that permeates every aspect of the economy and society, from the cost of a coffee, to a pint of milk and to a loaf of bread. We need to put more downward pressure on the cost of electricity. I would be interested to hear his thoughts on the interconnection and the plans for the next couple of years - the interconnectors to the UK and France. Will that lower the cost of electricity for the ordinary consumer and citizen in this country?
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I believe it will. We can see what happened last year. We have two interconnectors at the moment, one in north Dublin, which comes ashore at Rush and goes across to Wales, and the other in the North, which crosses over to Scotland. We are building a new one from Wales coming into Wexford at Great Island. We are also building one from Brest in Brittany in France, which will come in near Carrigtohill and into the Cork network. They are transformative. First, they are transformative in reducing emissions. We do not have the final figures for last year but we will get them shortly, but there was a dramatic reduction in emissions from the power sector in Ireland in part because when the wind was not blowing here, we were drawing power in from the UK in a way that allowed us to meet our needs and also reduce our emissions. We will be able to do that with France and the UK.
We will not stop there. We should go further with another connection with the UK and another one with France. I want to go down to Spain and connect with Spain so we can connect Spanish solar with Irish wind. That balancing capability is the new industrial revolution that is taking hold. It is a renewable, low-carbon, electrify-everything future and we will be good in this country. We are already leading in this country in that revolution. It provides nothing but benefit for our people in my mind.