Oireachtas Joint and Select Committees

Tuesday, 9 May 2023

Joint Oireachtas Committee on Climate Action

Engagement with the Commission for Regulation of Utilities

Mr. Jim Gannon:

Gas generators traditionally got much of their revenue through energy payments for using gas producing electricity through the kilowatt hour. Less of their revenue was through capacity payment, which is what we paid them on an ongoing basis to be there when we need them and make sure that, when we switch the light on to consume the kilowatt hour, it switches on. Finally, there is the issue of systems services. We owe the committee a paper that remains in development on that. It is nearly there. We had hoped to submit it with the hedging report. As we move forward it is likely that because we use the gas plant less, the overall volume of gas used in the country will decline. That is projected towards 2030 and beyond but when we need it we will need quite a lot of it. The volatility of how much we need will go up and down.

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