Oireachtas Joint and Select Committees

Wednesday, 19 October 2022

Joint Oireachtas Committee on European Union Affairs

EU-level Policy Response to Current Energy Security Issues: Discussion

Dr. Paul Deane:

In regard to nuclear, we should look at all options to reduce our reliance on fossil fuels. We must also be realistic and temper that with reality. The likelihood of SMRs moving from the conceptual space to the commercial space is probably ten to 15 years away. As I mentioned we are spending €1 million every single hour on importing fossil fuels into Ireland. We need to temper our expectations around the future availability of technologies with the reality that they will take time to deliver. Yes we should look at all options. However, they should not be a distraction from what we need in the present. The next 15 months and the next decade are going to be crucial and we cannot continue our reliance on fossil fuels. We will need backup. As I mentioned renewables reduce the use of fossil fuels and power plants but they do not replace the need. In the next eight to ten years that backup is probably going to have to come predominantly from natural gas. That is why the security of supply of Ireland's natural gas, the storage of natural gas and understanding our accessibility and reliability of our natural gas system are fundamentally important. We are not going to move away from fossil fuel overnight. We will transition slowly away from it. During that transition period we are going to need insurance policies such as gas storage. We will need to think carefully about our natural gas. In the long term vision, looking along the same timelines as SMRs, we are getting into the realm of different decarbonised gases such as hydrogen maybe coming on board. That is probably a conversation for the next decade rather than being useful for this decade. However, we are going to need backup. That is clear.

In regard to data centres I am not familiar with the 70% number mentioned by Senator Keogan. I know some of the numbers from EirGrid show a very strong increase of data centre demand growth into the future. I reiterate that the conversation needs to change from how many data centres we have in Ireland, to what type. Data centres that can demonstrate they can use renewables and store renewables to meet their energy needs will have a very positive impact on the energy system in Ireland for having a benign impact on climate emissions. For that we need to look for leadership with the data centre industry. We know at a conceptual level how energy can be stored and how flexibility can be moved around but commercially these things are very expensive. To remain relevant in a society and in the economy of the country that is demanding that everything should be greener and cleaner we probably need the data industry owners to step up to leadership on that issue and deliver some of those very flexible, what we call 24-7 or green power every hour operations.

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