Pre Budget Submission 2025
Turning crisis into opportunity
Over the past three years we have witnessed an energy crisis like no other since the 1970s. Wholesale energy costs spiked and became increasingly volatile due to geopolitical events and market disruption. Thankfully we have seen a welcome easing of wholesale energy costs and a degree of stability over the past 12 to 18 months, providing some respite for residential and business customers in the form of price reductions.
However, wholesale prices remain close to double pre-energy crisis levels and are likely to do so for the foreseeable future. Geopolitical and external challenges remain and will continue to pose a threat to market stability. In the coming years, Irish energy users will remain exposed to potential shocks due to the unique nature of our market structure.
Pinergy proposes the following six measures are included in Budget 2025, working towards a robust and resilient energy network and protecting households and businesses from external shocks.
1. Establish Department for Energy Transition
The Energy Transition should be overseen by a dedicated Department for Energy Transition that would lead a fair and just change in our energy systems over the next decade. We believe that a focused Department would accelerate the transition and reduce the risk of significant fines in 2030 and beyond. In addition, it would create opportunities for a new “energy transition economy” with job creation & new business accelerating the development of energy communities across the country. We have a unique opportunity to be a world leader in strategic wind and solar renewable generation assets. Let’s focus and deliver.
2. Surplus tax receipts should be invested into a modern electricity grid
As the backbone of the Irish Economy, businesses need access to cheaper forms of renewable energy. We call for an additional €1bn investment in the Electricity Grid funded through surplus tax receipts and not from electricity users.
Our domestic economy is vulnerable due to issues with the Grid, as demand grows for electricity with the electrification of heat & transport. Home building, commercial property development, key infrastructure and microgeneration projects require electricity connections. However, our Grid is ageing and needs significant resources and investment.
Further investment in the Grid will unlock new opportunities to create micro-energy communities where energy users trade electricity locally once regulations are introduced. We have a once in a generation opportunity to invest in a modern agile electricity grid to facilitate the next generation’s critical societal & economic development.
3. Renewable Energy Generation Funding
Funding remains a concern for many in the Sector. Whilst Policy is encouraging investment in Wind and Solar generation technologies, the traditional finance and banking community are less enthusiastic which can delay or even curtail projects.
We would like to see State-backed Energy Generation Funding programmes introduced in the Budget to create opportunities for the emerging and important energy generation sector.
Delivery of funding via bodies like Ireland Strategic Investment Fund (ISIF) should be prioritised given the positive nature of State’s finances for an accelerated generation of renewables in the run up to 2030.
4. Regulation of Solar PV sector
The Solar PV installation sector has scaled quickly since the Energy Crisis following a number of successful policy initiatives. Competition in the sector is very welcome, however we would urge investment in the Regulation of the Solar PV installation Sector to drive highest standards of work as well as Health & Safety.
We believe investment should be urgently made to regulate the sector to ensure that prospective buyers of Solar systems have the confidence to invest in solar, which in turn will reduce demand on the Grid.
5. Smart Metering for SMEs
As the Residential Smart Metering programme is concluding, we need to learn the lessons of the rollout. Further investment in the ESB Networks Smart Metering programme should be accelerated for Business Energy customers. Data and insights for these customers particularly in certain sectors could help significantly reduce electricity consumption as well as open up self-generation opportunities.
6. Maintain SEAI grant funding in key areas
In an inflationary economy, reducing SEAI Solar Grants is, we believe, beginning to curtail demand for Solar PV installations. We believe that maintaining Grants for both Solar PV and EV charging at current levels for the next five years should be considered as part of Budget 2025 to encourage adoption of these clean technologies. Indeed, the current slowdown in the Electric Vehicle market should be seen as an early warning that supports are required to ensure mass adoption and change of behaviours. A restatement of BIK benefit thresholds will support continued EV adoption in the critical fleet segment.
Progress made, but more to be done
We are seeing demand growing for renewable energy supply and solutions across the marketplace. Businesses and homeowners are very keen to invest and make decisions for the long term to reduce their consumption of electricity. We hear every day that they want to reduce their costs and to reduce their carbon footprints.
There has been significant progress made in the last few years with generous supports from Government. Domestic energy credits, business supports, zero VAT rate for solar PV, reduction in planning regulations for solar and generous SEAI Grants have assisted and really aided progress.
However, increased investment in infrastructure is needed from the State to accelerate a fair and just transition. Red tape needs to be reduced as well for businesses and homes to access important supports for the transition. The Budget surplus is strong and should be invested in infrastructure in areas that assist citizens to help our economy and our climate challenges.
With 2030 approaching and significant targets, focus is required to ensure that many more businesses and homes adopt and embrace the new technologies to drive energy transition for all citizens.