Dáil debates

Wednesday, 17 July 2013

Ceisteanna - Questions - Priority Questions

Electricity Transmission Network

1:25 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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1. To ask the Minister for Communications, Energy and Natural Resources if he is satisfied with the current operation of the electricity grid in the two jurisdictions on the island of Ireland; and if he will make a statement on the matter. [36725/13]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The operation of the electricity grid is a matter for the commercial State companies concerned and is not one in which I have a function; neither do have I a role in making a statement on the operation of the grid in another jurisdiction.

However, on a more general note, my views and the views of Government on energy infrastructure, which includes the electricity grid, are outlined clearly in the 2012 Government policy statement on the strategic importance of transmission and other energy infrastructure. As stated in that statement, energy is the lifeblood of Ireland’s economy and society. Electricity and gas demand for businesses and households must be met safely and securely on a continuous basis, 365 days a year. Our ability to attract and retain foreign direct investment and sustain Irish enterprise depends on guaranteeing energy supply at competitive cost at all times. Ireland needs to deliver a world class electricity transmission system which meets its needs in the 21st century.

EirGrid is the independent State-owned body responsible for the operation, development and maintenance of the electricity transmission system. It is licensed as the electricity transmission system operator, TSO, by the Commission for Energy Regulation, CER, and operates according to the provisions of this licence and under all relevant national and European legislation. The Government endorses the major investment under way in the high voltage electricity transmission system under EirGrid’s GRID25 programme. GRID25 is the most important investment in Ireland’s electricity transmission system for several generations and will position our energy system for decades to come. The GRID25 projects, including GridWest in Mayo, the Meath-Tyrone transmission line and GridLink in the south and east, are vital developments for the regions and for the economy and society as a whole.

It is Government policy and in the national interest, not least in the current economic circumstances, that these investment programmes are delivered in the most cost efficient and timely way possible, on the basis of the best available knowledge and informed engagement on the impacts and the costs of different engineering solutions.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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The integration of the grid by both jurisdictions on the island of Ireland is fundamental to our energy security for the future. There are issues relating to energy security in our neighbouring island. However, there is a plan to have the EU energy system fully integrated by 2014. Is the Minister satisfied that what is in place and the infrastructure being developed will allow us to be fully integrated into the EU internal energy market by 2014? With regard to ensuring there is absolute co-operation between the jurisdictions in the North and South, is there is a need to have discussions about the energy market and energy supplies brought under the remit of the North-South Ministerial Council?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The thrust of electricity policy is towards integration. There is an all-island market on this island and it is functioning very efficiently. However, the Deputy is correct that meshing the two systems is desirable and very important. The critical piece of infrastructure between Tyrone and Meath is necessary for that. It is estimated, not least by the regulator, that the cost of not building the Meath-Tyrone line is between €20 million and €30 million per annum. The regulator now thinks it will be closer to €30 million forgone as a result of it not being built. The planning application will be lodged at the end of this year. Hopefully, we can navigate our way through the difficulties that still exist. There is community resistance to it and we have leaned over backwards in trying to meet those concerns.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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The other point I raised was the EU Internal Market by 2014. What is the position with being fully integrated into that?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The completion of the internal energy market was a major issue during the Irish Presidency. We managed to progress the file on that issue quite significantly. It is important, however, to draw a distinction. Completion of the internal energy market by 2014, and if memory serves we have a two year derogation, is to deal with the policy aspects in terms of design, regulation and so forth. It does not mean that the physical infrastructure will be in place by 2014 to integrate the European electricity system. It means the spade work ought to be completed by then. Ireland is one of the few countries that has made progress on that in terms of the east-west interconnector between Wales and Ireland. However, with regard to the phenomenal investment that will be required to give physical expression to the completion of the Internal Market across Europe, we are talking about billions of euro. It is going slowly.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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However, there is a plan for that.

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Yes, there is indeed.