Ciarán Cuffe (Dún Laoghaire, Green Party)
Link to this: Individually | In context

Question 159: To ask the Minister for Communications, Marine and Natural Resources his views on the development of a distributed electricity grid system here; and the measures which are being put in place to ensure that current investment in the upgrade of the national grid will facilitate such a development. [27836/05]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

It is general policy to support development of distributed generation where economically feasible. Under the oversight of the Commission for Energy Regulation several measures have been put in place to ensure the development of a grid system that will facilitate the development of distributed or embedded generation. The commission has introduced an autoproducer tariff to ensure equitable treatment for distributed, embedded, and autoproducer generation.

The grid upgrade development programme funding is being used to invest in the network in advance of the connection of embedded generation where appropriate. The commission provides financial support for research and is funding a research project in this area. The refurbishment of the distribution network and the building of new substations will ensure the capacity and reliability of the distribution system. The sum of €1.25 billion will be spent reinforcing and renewing the distribution network in the coming five years.

The ESB distribution grid has been designed to distribute electricity from higher voltage input points to lower voltage premises, homes and businesses. This is the traditional design of electricity distribution networks, and is the most efficient method of guaranteeing good quality electricity supply across large geographical areas and to large numbers of customers. The investment by ESB Networks in the network renewal programme is designed to refurbish the existing medium voltage network and improve the quality of supply to electricity users. ESB Networks typically needs to upgrade the distribution networks to facilitate the connection of embedded generation. This work is carried out on a project-by-project basis where connection agreements with generators have been signed and the costs of these works are borne by the generator. It would not be economically feasible to upgrade the entire network to allow embedded generation at any point on the distribution network as this would require a great many additional substations and overhead lines to be built around the country.

Micro-combined heat and power is not a major feature of the Irish distribution network at this stage. A micro-combined heat and power unit would require the installation of an input-output meter to record levels of electricity travelling into and out of the premises. There is no EU standard for input-output meters. The ESB is working in co-operation with the EU to develop a standard that is expected in 2007. The ESB is monitoring the installation of any input-output meters on the distribution grid to gauge the efficiency of the units and any implications these units have for local networks. For example, if a large number of micro-combined heat and power plants were outputting electricity at the same time in one locality it may result in a power surge to neighbouring premises. There are further regulatory matters surrounding tariff prices and spill prices for electricity produced by micro-combined heat and power units.

Domestic customers wishing to install micro-generation units without a requirement to sell their exported units can do so on a fit-and-inform basis, that is, the customer advises ESB Networks of the unit being installed. In most of these cases the actual amount of units being exported would be small, if any. In recent years there has been a rapid development of smaller generation and renewable generation. There is approximately 420 MW of embedded generation plant, that is, connected to the lower voltage distribution system or at a directly-connected demand customer's site. This figure comprises combined heat and power schemes and small thermal units, and renewable generation from wind, small hydro, landfill gas and biomass sources. In the longer term there may be issues, specifically around wind generation, which would result from significant penetration of distributed generation. The commission for energy regulation is monitoring developments in this area.