Mr. John Finnegan:

Moving to the electricity network, the transformation required to meet the up to 80% renewable electricity target we have set ourselves by 2030 will require significant investment in the grid. Recognising this, in 2020 the Commission for Regulation of Utilities, CRU, the energy regulator responsible for oversight of national electricity grid costs, sanctioned a total of €4 billion in capital investment spend on the grid over the 2021-2025 period. EirGrid and ESB Networks are using these funds to accommodate the high level of renewables being added to the system as well as the increased demands from the electrification of our heat and transport sectors.

In general, new and enhanced grid connections are provided in response to new investments in renewable generation. The Enduring Connection Policy programme from CRU sets out the framework for providing these connections to new generation projects. This programme provides for 115 connection applications to be processed by ESB Networks and Eirgrid each year from 2021 to 2023. At least 15 of these applications are reserved for community projects. Further applications, up to a total of 30, are reserved for micro projects with a maximum capacity less than 500 kW or self-supply projects.

We understand and have heard from the co-operative itself that the members of the committee are anxious to ensure the grid will be upgraded as necessary to allow electricity to be exported from islands to the mainland. This will include the upgrade of the connection from the islands to the mainland and any further grid upgrades from thereon. The intention of the Enduring Connection Policy programme is that the grid will be upgraded in exactly this way as and when needed to facilitate renewable generation on the islands, or indeed, anywhere where there is potential for renewable power.

The possibility was raised with the Department by the committee of dual-purpose investments to upgrade water and electrical connections at the same time. As described, an upgrade to a grid connection would be considered when there is a new renewable generation project in train. If the grid connection was being upgraded the potential to carry out work for water at the same time would have to be considered in detail at that time.

In response to some questions and comments I will give an overview of who we are and of who the other bodies we are referring to are. The Department of the Environment, Climate and Communications is responsible for the delivery of policies and programmes in a large number of areas, including energy security, natural resources, climate action, energy efficiency, communications and waste.

Eirgrid is a State-owned company under the aegis of the Department that develops and operates the electricity transmission grid. This transmission grid connects large-scale generators and users and bulk supply points near cities and towns.

ESB Networks is a division of the ESB. ESB is also under the aegis of the Department. ESB Networks finances, builds and maintains the transmission grid that has been designed by and is operated by Eirgrid. In addition, it carries out all the functions relating to the electricity distribution system, which includes the planning, construction, maintenance and operation of it, and the metering of customer end use.

The CRU is Ireland's independent energy and water regulator. Its mission is to protect the public interest in water, energy and energy safety. The CRU’s key functions, delivered under guiding legislation, are: economic regulation of energy, including setting the maximum amount that EirGrid and ESB Networks can invest in network infrastructure and can recover from users in fees; similar economic regulation of water; dealing with customer complaints on energy and water; and energy safety regulation.

I thank the committee again for inviting myself and my colleagues from the Department and we are happy to answer any questions.