Oireachtas Joint and Select Committees

Tuesday, 15 February 2022

Joint Oireachtas Committee on Climate Action

Commission for Regulation of Utilities Strategic Plan: Discussion

Mr. Jim Gannon:

On the first question, in terms of the development of the volumes we believe we need for the coming years, we rely on the data and analysis underpinning the generation capacity statement that EirGrid produces to state the type of capacity it needs in the coming years. We then seek that capacity. That capacity can be provided by wind energy, solar PV or gas. In the coming years, we need a portfolio of gas facilities to match wind energy as we develop that wind portfolio. It is likely that they will be used less frequently over time. Businesses that bid in the auction processes perform the analysis as to how much they might or might not use. Competition forces them to push that down to the lowest price possible. In terms of insights into what technologies might develop faster or slower, will we get long-term batteries that are cheaper than they are now? Will we get system services that are better than they are now? Will hydrogen come in and be cost effective in 10, 20 or 30 years' time? Generally, businesses that are competing and bidding against each other and are keeping each other - I hesitate to use the word - honest, would bring natural competition to the sector. So, basically-----

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