Press release
New Bill to strengthen State’s capacity to manage oil supplies receives government approval
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
The Minister for the Environment, Climate and Communications, Eamon Ryan, has today welcomed Cabinet approval to publish the Oil Emergency Contingency and Transfer of Renewable Transport Fuels Functions Bill 2022. The main purpose of this Bill is to strengthen the government’s ability to manage stocks in the unlikely event of a curtailment of oil supplies.
There is no such concern or risk at present. International oil supplies and prices have been steady over recent months. Motorists have seen a fall in prices, for petrol and diesel, at retail forecourts of late.
This Bill follows work undertaken by the department last year, following Russia’s invasion of Ukraine. From the onset of the Russian invasion of Ukraine and the resulting impact on global energy markets, the government has sought to address the negative impacts of higher energy prices on consumers, society and the economy. In Budget 2023, the government announced a suite of measures to help people with higher energy prices, while the Energy Poverty Action Plan, published last month, provides further support for people at risk of energy poverty this winter.
While higher energy pricing overall remains a key concern, there is also an onus on the government to provide confidence to households and businesses with respect to the security of Ireland’s energy supply. Energy security is enhanced by having in place a multitude of robust emergency plans that seek to mitigate, offset or prevent supply issues emerging. The Department of the Environment, Climate and Communications has been testing emergency plans in recent months with relevant departments and agencies. Work is ongoing to ensure that plans can be operationalised at speed, if required, however unlikely any such scenario may be.
The government’s approach is in keeping with that of other EU Member States, where emergency preparedness plans have been sharpened in response to the ongoing energy implications of the war in Ukraine.
The key measures that are being introduced in the Bill include:
Minister Ryan said:
"This Bill is part of a suite of initiatives being developed by my department to ensure the security of Ireland’s energy supply in the near future. Our long-term priority, however, and the best approach for Ireland, is to insulate consumers from volatility on international wholesale energy markets by investing in energy efficiency and renewable energy, expanding interconnection with European markets and deepening internal market integration.
"Climate Action Plan 2023, published before Christmas, sets out how Ireland will accelerate the transition to renewable energy sources. This shift brings with it many rewards, not least greater energy security and stable prices.
"At the same time, my department continues to closely monitor the security of energy supplies to Ireland, particularly since Russia’s illegal invasion of Ukraine. The government is strengthening the State’s contingency planning measures to ensure that we can respond quickly and effectively should oil supplies be constrained."
The Bill also provides for the formal transfer of functions from the Department of the Environment, Climate and Communications to the Department of Transport with respect to renewable transport fuels; the change in policy responsibility took place in early 2021.
New legal provisions in the Bill will support specific measures for the achievement of targets in Climate Action Plan 2023 for biofuels, effectively incentivising higher blends of biofuel ethanol in petrol and biodiesel in diesel consumption, while we transition to alternative modes of electric transport, public and active travel in the years ahead. The specific measures have previously been set out in the Renewable Fuel for Transport Policy 2021. They will incentivise the supply of renewable transport fuels such as HVO, biomethane, and green hydrogen, as well as the supply of renewable transport fuel for use in aviation and maritime transport.
ENDS
As part of the State’s EU and International Energy Agency (IEA) obligations, the National Oil Reserves Agency (NORA) holds approximately 85 days of strategic stocks. Normally NORA holds 90 days stock but some NORA stocks were released in March and April last year as part of co-ordinated global releases of reserves agreed by members of the IEA. However, NORA’s stock holding is expected to be back up at 90 days by the end of January.
The National Energy Security Framework (NESF), which was approved by Government and published in April 2022, sets out Ireland’s response to our energy security needs (in the context of the Russian war in Ukraine) and our specific national circumstances.
The Department of the Environment, Climate and Communications has set up an Energy Security Emergency Group (chaired by the Secretary General) under the National Energy Security Framework. This group coordinates and oversees activity and responses — at a national level — in relation to the impact of the Russian war in Ukraine on energy security. The group includes representatives from the Department of Enterprise, Trade and Employment; the Commission for Regulation of Utilities (CRU); Gas Networks Ireland; EirGrid; the National Oil Reserves Agency (NORA); and the SEAI.
Its work includes:
In addition, the Oil Security Sub-group, involving Fuels For Ireland and other stakeholders, meets on a regular basis as part of prudent, ongoing planning.
The Department of the Environment, Climate and Communications chairs oil emergency training exercises as part of regular and ongoing contingency planning. These exercises are attended by key government departments, agencies and industry participants, with expertise from across the sector.
During these exercises, hypothetical scenarios are considered and emergency plans are stress tested. Scenarios include the release to the market of oil stocks managed by the National Oil Reserves Agency (NORA) from the State’s strategic oil reserve with the aim of maintaining supply. Measures include the prioritisation of fuel to emergency and critical services.
The most recent joint gas, oil and electricity emergency training exercise was held in autumn 2022.