Mr. Mark Foley:

I will pick that up in part and I might defer to my colleague, Mr. Doyle. I will answer the question in three parts. First, demand is increasing; there is no question about that. That demand is a function of two things. One is a very successful economy, which is good for the whole nation, and second is a digital economy that is world class. That is a fact and we need to consider how we cater for that. There are two other parts of the equation I really want the Senator to understand.

Second, there is major emphasis, involving major measures and programmes with people in industry and elsewhere, about demand reduction and demand moderation. We talk about DSUs and others where people are incentivised to be available to switch their electricity off at times of peak demand and to be able to contribute to the sustainable growth of the electricity system. This is a second and crucial part of the three pillars which makes the power system function and ultimately allows us to have a sustainable system.

Third, and importantly, is the deployment of intelligence in the power system. This is between EirGrid and the distribution system operator, ESB Networks, with the recent and rapid deployment of smart meters. We will not see peak demand growing in proportion to total demand because we will have the widespread deployment of very smart intelligent devices on the system. As houses get heated by electricity and as cars get charged by electricity, there would be considerable activity outside peak times when prices are low and at times when the power system is operating at close to 100% renewables. It is important for the committee members to understand that this is not just about meeting unbridled demand, but is about an holistic set of measures, which include technology and engagement with market participants who are available and willing to moderate their demand while being commercially and appropriately remunerated for that. Mr. Doyle might wish to speak further about DSUs.