Dáil debates

Thursday, 15 December 2022

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Energy Policy

10:39 am

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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70. To ask the Minister for Communications, Climate Action and Environment the action he has taken since the publication of the energy security review to improve Ireland’s energy security; and if he will make a statement on the matter. [62751/22]

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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What action has the Minister taken since the publication of the energy security review to improve Ireland's energy security? I am particularly interested in the area of gas storage and the emergency backup that is due for delivery next year. With regard to the scheduled capacity that is due to come on stream, I understand there is a challenge in delivering that.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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I referred to the energy security review in an earlier response, so I might immediately respond to the Deputy’s questions in his verbal presentation. With regard to backup generation, which is critical, we have all been watching this in the past week, when our wind power was very low because of the high pressure across north-west Europe. With the very cold conditions, there has been very high demand for electricity and, obviously, we have been very tight in terms of availability. I am glad to say our system has held up in probably the most challenging conditions and, in the coldest, darkest part of the year with the calmest conditions, we were able to provide power. Nothing is guaranteed through the rest of this winter and we could lose plant or have other circumstances, and interconnection with the UK might be tricky because France and the UK have similar problems. However, I am glad we are managing through the immediate very cold period.

We will introduce a further 245 MW of procurement of emergency power. Work is ongoing on that in North Wall and Huntstown, which is the second location, to deliver that next autumn. Work contracts have also been signed. I was very appreciative this House agreed the legislation which will allow us also to purchase a further 450 MW of backup generation just for use in the last eventuality, if other plants are not available. Again, contracts are signed. The critical timeline to deliver it will be on the planning side with regard to whether it is delayed or how quickly we can get it through the planning system.

There is also ongoing work on the T-3 auctions and T-4 auctions, which will deliver further backup. We need gas-fired power generation to provide backup in periods like this when wind is very low. Critically, this will allow us to turn away from coal and oil, which have the highest emissions and which is the reason our emissions are so high at the moment. It is one of the biggest problems we have and we need to switch those off. The generation coming out of those T-3 and T-4 auctions are now our first priority and we need to deliver the majority of those. We can and will deliver that. I will come back to the Deputy on the storage piece in the second part of my reply.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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I will afford the Minister 30 seconds of my time for that. There is the storage piece and there was also a question mark over the viability of projects that were to be delivered next year and in the years ahead, related to the January auction by EirGrid. The last time we spoke here, the Minister said the Commission for Regulation of Utilities, CRU, was looking at it. I ask for an update as to whether those projects are going to be delivered.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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It is complicated because these are complicated issues and the timelines are tight. I would be interested to hear the Sinn Féin view on storage. I do not know if Sinn Féin was one of the 400 consultees in terms of which type to use. There are a variety of options. There is the option, which is coming back into view, of looking at the Kinsale gasfield, which had been used as a storage facility in the closing years of its operation and which has the right geological characteristics to be able to do that. We would have to put in a larger wellhead and, obviously, there would have to be a build-up because while it has existing cushion gas, it would need a further layer or volume of that. That is now being looked at by some people as one viable option.

I had a very good meeting with Gas Networks Ireland, which would have views on what is possible. In the work I have seen it do, it has cited examples in the US where there can be significant onshore storage facilities that will provide some of the flexibility and backup we need. Others are arguing for commercial locations and various types of LNG facilities. We will need storage, and we need it for security reasons as well as flexibility reasons. Picking the right one for the State's interest is what will be key. I look forward to hearing the Sinn Féin view in that regard.

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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To be clear, if it is deliverable, Sinn Féin supports State-owned, non-commercial storage, preferably onshore. If we are saying Kinsale might be an option, it is important it is State-owned and non-commercial to avoid the potential of lock-in and, importantly, to ensure it is transferable to zero emissions gas or hydrogen, as appropriate. We will support the Government if that is the direction of travel of the Government, and we think it needs to happen at pace.

With regard to the generation capacity that is to be delivered next year, there was a question mark over this. Will it be delivered? Has the CRU delivered a judgment or when will it do so in regard to the index-linking or financial viability of those projects?

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The decision on that index-linking issue relates to the T-3 and T-4 auctions, which will not come next year, and it is in 2024 and 2025 when that generation was always expected to come. The generation that is due next year is the emergency procurement and emergency purchasing, which is done to close the gap from the failure of the auction back in 2019 to deliver a similar quantity of about 700 MW of power. As I said, I am very confident now that, on procurement, the first transfer of 250 MW will be delivered next year and the 450 MW additional is on track, but the key constraint in regard to how quickly that happens will be the planning system.

In that, or through the legislation we have passed here, we have given a clear direction to An Bord Pleanála and mechanisms to accelerate the planning and to ensure that happens. In reality, that is probably the biggest challenge. We are meeting EirGrid and CRU to assist as part of our ongoing reviews of the delivery of that. We need all three, the emergency procurement, the purchasing, and, critically, the T-3 and T-4 auction supplies, which will come in later years, in 2024 and 2025.