Oireachtas Joint and Select Committees

Tuesday, 30 August 2022

Joint Oireachtas Committee on Climate Action

Energy Supply and Security: Discussion

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

We have asked Gas Networks Ireland and CRU to come back to our steering group on emergency planning with further measures. The measures under public consultation from CRU on time-of-day pricing is a good example of how we can manage demand and have flexible demand management to help us through this incredibly difficult period.

On the RESS scheme, which the Senator mentioned, I note a number of changes which are important. We have introduced a new scheme where there is effectively a cap on how high costs can reach, which was not there previously. That was an important development in terms of improving the market. The Senator is correct. I would have liked and expected to see somewhat lower prices. In answer to the question as to why our prices were higher than expected, there are a variety of reasons for this. First, the world is in a very difficult global supply chain situation, with the cost of steel and other supply constraints. The primary reason in my estimation is that the curtailment and constraints that we apply to renewables, because of a lack of grid connectivity, is one of the biggest challenges. I will be honest and say that it is a political issue for all of us. We know, in the past decade, despite the best efforts of EirGrid and ESB, it has been very difficult to build out the grid. It is neither an easy nor a popular thing to support or promote. If we do not have good, strong grid connectivity and the ability to get that through the planning system, it will have knock-on consequences for our economic development and protecting people from fuel poverty.

EirGrid has done a good job in Shaping our Electricity Future, which I have said consistently, in terms of public consultation, is exemplary. In terms of how we will start to change that narrative and story, EirGrid will come back with a revised Reshaping Europe. It will take into account what we have seen in the recent RESS auctions. We will have to start locating both generation and demand in areas that support the grid, thereby minimising the need to build out the grid.

If I were to mention one constraint and one difficulty we have, as Mr. Gannon said, it is our ability to get some of the grid connections through the planning system. That is our biggest problem in that regard.

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