Oireachtas Joint and Select Committees

Tuesday, 9 May 2017

Joint Oireachtas Committee on Communications, Climate Action and Environment

Electricity Grid Development Strategy 2017 and Proposed Celtic Interconnector: EirGrid

7:00 pm

Mr. Fintan Slye:

Yes. The level of hydro is pretty flat. No new hydro resources are being exploited. From memory, the breakdown is about 37% wind and 3% hydro. Beyond that, the energy scenario piece we are considering examines how a range of other technologies might come on stream and change the energy mix. We have quite a range of assumptions around solar, offshore and onshore wind energy and battery storage. We will examine how they, in combination, affect that energy mix and what it might look like it in 2030 and 2040. We imagine that number will need to go up as Ireland looks to deliver on what came out of Paris and COP 21.

The final question concerned broadband, connectivity and using the electricity network to improve broadband access where possible.

The transmission equipment we operate and plan to develop on the island is owned by the ESB, which is looking to develop fibre on the network. It is involved in a joint venture, SIRO, with Vodafone to roll out broadband to communities. We own the interconnector and will own future interconnectors, including telecommunications links, and there are 12 commercial fibre pairs available on the interconnector between Ireland and the UK. For anything to link to France, we would also look to include fibre pairs to increase connectivity.

Deputy McDowell asked about data centres and the numbers he gave are correct. In line with our own assumptions, the report states that 75% of demand growth up to 2030 and 2040 will be driven by data centres. We work with all the data centres on where they can connect. They pay for their connection in line with the charging process and also pay for any energy they use so they are not free riding on the system. They are having a significant effect on projections for demand growth. We work very closely with the IDA to look at strategic sites which would be appropriate for data centres to connect. We add the electricity connection, though they have other considerations. We try to make sure the IDA has all the information on where they can go and what the effect would be.

On the question of benefits to the system, we are not in charge of industrial or jobs policy but large investments by such large companies have a greater effect than the number of jobs which are quoted. Any assessment would have to take into account rates, taxes, the effect of clustering and whether other related operations started to coalesce round them, as we have seen in other jurisdictions. Ms Steen has been involved in a lot of the discussions with customers and IDA Ireland.