Oireachtas Joint and Select Committees

Tuesday, 15 February 2022

Joint Oireachtas Committee on Climate Action

Commission for Regulation of Utilities Strategic Plan: Discussion

Mr. Jim Gannon:

I thank the Deputy. In the context of taking on board demand and flexibility management, one of the actions we articulated in our information note was that Eirgrid would seek to engage with large industry electricity users to see what form of demand curtailment could take place in advance of entering into the load management protocol in times of system emergency. Dialogue has been successful with this cohort and Eirgrid continues to discuss with broader segments of industry to see what other sectors may be brought in, and also to deepen that engagement. Where previously the load-shedding protocol sought geographical areas which would have generally impacted upon smaller scale users in the first instance, this brings in demand curtailment for large energy users. That engagement includes not just engagement with demand users and seeking that flexibility for next winter and subsequent winters, but also dialogue with regard to any environmental licensing considerations that need to be taken there. That dialogue is progressing well. Eirgrid has not had to call upon that flexibility thus far, but it is a good flexibility to have in place.

In terms of demand-side units - this is a second stream with regard to flexibility - they have capacity contracts in the capacity market and can be activated at different times to turn down their demand and be called upon by Eirgrid. In that effect, they reduce the demand side as distinct from increasing the generation side. A workstream of the single electricity market, SEM, committee this year in order to send signals for next winter is to see how different signals could be sent to the demand-side units to improve performance and declarability and increase that demand-side flexibility. In the first instance, we have demand-side curtailment with large industry. Separately, we have a cohort that have capacity contracts in the capacity market, that is, demand-side units. Third, as Ms MacEvilly mentioned and the Deputy noted, bringing into place the economic signals that can allow people to benefit from moving from the peak between 4 p.m. and 7 p.m. is quite important.

It will provide a lot of value to the grid and value to consumers down the line.

With regard to offshore renewable technology, we have our climate action plan goals for our part as regulators. We are following national policy in that regard and engaging with the Department and with the formulation of that policy. Separately, we are progressing with our decisions, particularly in respect of the connection approaches and the connection protocol being taken by EirGrid. That work is ongoing and is moving forward to programme.