Oireachtas Joint and Select Committees
Wednesday, 18 February 2015
Joint Oireachtas Committee on Transport and Communications
Regulation of Gas Industry: Discussion
9:30 am
Mr. Garrett Blaney:
I will answer the Deputy's question about the 40%. From what we can see, it is certainly the case that there are enough connections in the system. We have connections to connect much more than 40% of wind at the moment. There is a question about each of those connections. Each individual generator has been quite slow in terms of delivering the grid. I think that has been a feature. We are very aware of the sort of resistance, particularly locally, to many grid build-outs. It is probably reasonable to presume that 100% of the connections in the system will not be delivered, but we should be on target to meet the 40% level. There are risks. I think the grid is one area of risk. We need to make sure we consider the issue of curtailment. We are finding that we are turning wind generators down, even at times when the wind is blowing, because of a lack of flexibility in the system. We have a programme in place with EirGrid to try to address that. This is one of the major wholesale market elements we are working on. A number of different programmes are in place to try to address these issues, but the crucible of cost is a key factor in all of that.
When we were going through this issue previously, I think we identified that our network costs are more expensive than those of the rest of Europe. Extra costs are added when projects are put underground. The DC options are generally more expensive than the AC options. The AC options are very limited because if very long AC lines are put in, technical problems will arise and the system will not work properly. Throughout this process, as people look at this question and local community issues arise, we are very keen to ensure the cost element is not lost. We do not want to end up with all the lines going underground, with a massive extra cost being incurred by the general consumer, or with people failing to think through the cost elements of these difficult policy issues.
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