Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I thank the Cathaoirleach and Senators for this opportunity to update the House on the security of energy supply. I will address the challenge related to security of electricity supply. There are currently no similar short or medium concerns about oil and natural gas security of supply, which continue to be traded normally, albeit at high prices. For this reason, I will focus my comments on the security of electricity supply.

Ensuring a continued secure supply of electricity is vital for the proper functioning of society and the economy. It is also necessary to ensure people and businesses have confidence in switching to electrified solutions such as heat pumps and electric vehicles. The Commission for Regulation of Utilities, CRU, has statutory responsibility, under SI 60 of 2005, to monitor and take measures necessary to ensure the security of electricity supply in Ireland. The CRU is assisted in its statutory role by EirGrid, the electricity transmission system operator. The CRU is an independent statutory body and solely accountable to a committee of the Oireachtas for the performance of its functions. I, as Minister, have overall policy responsibility for the sector, including policy matters impacting on security of energy supply.

The CRU has advised that it has identified specific challenges to ensuring continued electricity security of supply. These challenges include lower than expected availability from some existing power stations; anticipated new power stations not being developed as planned; expected growth in demand for electricity, including due to the growth of data centres; and the expected closure in the coming years of power stations that make up approximately 25% of conventional electricity generation capacity.

The short-term immediate risk to electricity security of supply has been caused by lower than expected availability of existing power stations. This has resulted in a number of system alerts, which indicate an elevated risk level, on the electricity system but has not impacted the electricity supply to any customers. This risk has reduced with the recent return of gas-fired Huntstown power station and will reduce further with the return of another gas-fired power station, Whitegate in Cork, due later this month. Notwithstanding this, there is no place for complacency as there are continuing issues with reliability, as evidenced by another recent forced outage at the oil-fired Tarbert power station.

EirGrid’s winter outlook, published on Monday, 11 October, sets out that there is an expectation that the electricity system will enter an alert state at times over the coming winter, most likely at periods of low wind and low interconnector imports. It also sets out that there is an elevated risk, compared with previous winters, of the system entering the emergency state due to insufficient generation being available to meet the demand. This does not mean that electricity consumers will be without supply for any period. It does, however, indicate a higher than planned level of risk.

While it is not possible to guarantee that there will always be sufficient power to meet demand, the CRU and EirGrid are working to ensure secure supplies of electricity for all consumers. EirGrid and ESB Networks have put in place procedures to ensure that in the event that demand curtailment is needed, large energy users will be requested, in the first instance, to reduce demand where possible. This includes requiring data centres to switch to available on-site backup generation.

The medium-term risk to security of electricity supply is set out in EirGrid’s generation capacity statement, which was published on Wednesday, 29 September and covers the period from 2021 to 2030. EirGrid has identified a medium-term need to develop 1,850 MW of generation capacity by 2025. On the same day, the CRU published an information note setting out the programme of actions being progressed to deliver the required generation capacity. The actions include increasing the availability of existing generators; developing of new generation capacity, including temporary generation capacity in advance of winter 2022; extending the operational life of some existing generators; a new policy for the grid connection of data centres; and actions to enhance demand-side response, including large consumers reducing demand when the system margin is low.

The national development plan sets out that around 2,000 MW of new conventional electricity generation capacity will need to be delivered over the coming decade, with much of this needed by mid-decade. This generation, most of which will be gas-fired, is needed to support the operation of the electricity system and provide security of supply.

My Department is working closely with the CRU and EirGrid to ensure continued secure supplies of electricity. My Department is developing a policy statement on security of electricity supply in support of the CRU programme of work. It is envisaged that the policy statement will emphasise the importance of maintaining security of supply in meeting renewable electricity targets by 2030 and net zero emissions by 2050. It that context, it will provide certainty for investors in the appropriateness of developing new conventional electricity generation capacity and new grid, interconnection and storage infrastructure.

For the longer term, my Department is also carrying out a review of the security of energy supply of Ireland’s electricity and natural gas systems. This review is focusing on the period to 2030 in the context of ensuring a sustainable pathway to net zero emissions by 2050. The review will consider options that will address the key longer-term risks to our electricity and natural gas security of supply. These risks are likely to include the increasing dependence on imported natural gas from a single UK source, via two interconnector pipelines to the Moffat terminal in Scotland, for that majority of Ireland’s natural gas supplies. By 2030, it is expected that over 90% of all of Ireland’s natural gas needs will be supplied via Moffat in Scotland. The review will consider a wide range of potential options to mitigate identified risks, including the use of individual renewable energy technologies such as green hydrogen, biomethane, battery storage, pumped hydro, or a combination of these.

Again, I am grateful for the opportunity to address the Seanad this evening. I look forward to listening to Senators' contributions and responding to the issues they raise.