Mary Upton (Dublin South Central, Labour)
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Question 77: To ask the Minister for Communications, Marine and Natural Resources his plans for a current examination of gas reserves here and electricity storage projects in view of the increase in wind generation; and if he will make a statement on the matter. [33439/06]

Noel Dempsey (Meath, Fianna Fail)
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One of the strategic objectives set down in the All-island energy development framework for natural gas is a common approach on natural gas storage and LNG. With this in mind, the issue of a strategic gas reserve is one of the issues to be addressed by means of an all-island study to be commissioned jointly by my Department and the Department of Enterprise, Trade and Investment Northern Ireland. Both Departments are currently engaged in a tender process in this regard. The successful tenderer will be required to assess the medium to long-term position with regard to security of natural gas supply and consider the scope for a common approach on storage and LNG with a view to optimising that position. The final study will have regard to industry views and to any existing capacities as well as to planned or proposed developments for storage and LNG in the island of Ireland. It is my intention that a contract for the study will be placed by the end of January next at the latest with a view to the report being finalised by mid 2007.

Security of supply in relation to electricity is a matter for the Commission for Energy Regulation in accordance with the provisions of Article 28 of the European Communities (Internal Market in Electricity) Regulations 2005 (S.I. No. 60 of 2005). Specifically, Article 28 provides that it shall be the duty of the Commission to monitor the security of supply of electricity and that the Commission shall take such measures as it considers necessary to protect security of supply. In the performance of its monitoring and corrective functions, the Commission is advised by the EirGrid, the Independent Transmission System Operator.

In its latest Generation Adequacy Report 2006-2012, the TSO identifies system operation issues as a result of increasing wind generation as one of the key issues to be addressed to ensure that electricity demand continues to be met. With this in mind, I am advised by the Commission that it has requested the TSO to update it's study carried out in 2004 on the economic and operational impacts of wind penetration with a view to identifying any necessary actions which need to be taken.

With regard to electricity storage projects, the Commission advises me that while it would welcome initiatives in relation to electricity storage and the potential benefits which could be accrued from these, it would not view them at present as having a significant role in relation to security of supply. In terms of security of supply, the Commission advise that other mechanisms such as increased interconnection, the development of the Single Electricity Market, continued improvements in thermal plant efficiency and availability as well as medium to long term needs for new plant should be given priority consideration in order to ensure generation adequacy into the future.