Oireachtas Joint and Select Committees

Tuesday, 14 February 2017

Joint Oireachtas Committee on Communications, Climate Action and Environment

Effect of proposed withdrawal of the UK from the EU on the Irish Energy Market: Discussion.

5:00 pm

Mr. Kevin Brady:

I appreciate that a number of the members of the committee attended the Brexit civic dialogue last Monday. We know that Brexit is one of the most significant socio-economic challenges we face. Energy is a core sector. We have key links with the UK in energy, and the figure that should interest us most is our energy import dependency. In 2015 Ireland imported 88% of the energy we use. The UK is the source of much of this energy. Natural gas is probably the best example. We use natural gas to generate over 40% of our electricity. It heats our homes and businesses and generates power for industry. In 2015, 97% of the natural gas used in Ireland was imported from the UK. That has dropped with the opening of the Corrib gas field. Corrib will supply over 50% of our gas needs this year and in coming years, but it will not have a long lifespan. By 2025 it is estimated that Ireland will be 85% dependent again on UK pipeline gas. When we highlight the energy dependency Ireland has on the UK it is important to note that we are not the only country that has energy links with the UK. France, Belgium and the Netherlands all have either natural gas or electricity interconnectors with the UK, therefore Ireland will be working as one of a number of European countries to ensure that the secure trade in energy continues between the UK and EU member states.

The Government has set out a number of priorities in the area of Brexit. The priorities are maintaining trade in secure supplies of energy between the UK and EU member states, maintaining the single electricity market across the island of Ireland, accommodating Ireland's ability to met EU obligations and ensuring appropriate energy infrastructure. On Monday, 6 February we had an all-island Brexit civic dialogue on energy in Boyle, County Roscommon, which was attended by members of the Committee, and at that meeting we presented an outline of what I have described and the key priorities. We also had a wide range of groups from industry and society represented in a number of break out sessions which discussed the impacts of Brexit. We will be compiling and publishing a report on that civic dialogue and we will also be inputting. The chair of the civic dialogue was Jim Gannon, the CEO of the Sustainable Energy Authority of Ireland, SEAI, and he will be bringing the views of the energy dialogue to the all-island civic dialogue in Dublin Castle, which is on Friday 17 February.

It is worth re-emphasising that there is an extensive programme of engagement with all other EU Governments and EU institutions, including the EU commission's Brexit task force, who we have met on the specific issue of energy. This activity and engagement is being carried out at a political, diplomatic and official level.

It is important to note that the two parts of what we have discussed here, which is the clean energy package and Brexit, will both be negotiated in parallel but not necessarily at the same time. The negotiations for Brexit and the negotiations for the clean energy package will be happening in parallel, which we need to take account of in those negotiations.

We have the heads of each of the sections across energy and climate, so we can direct the questions that arise to the appropriate person.