Written answers

Tuesday, 20 February 2007

Department of Communications, Energy and Natural Resources

Electricity Generation

10:00 am

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 396: To ask the Minister for Communications, Marine and Natural Resources his plans to improve generation and transmission adequacy in the electricity sector; and if he will make a statement on the matter. [6136/07]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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Security of supply in relation to electricity in Ireland is the statutory responsibility of the independent Regulator, the Commission for Energy Regulation (CER). The independent Transmission System Operator (TSO), EirGrid, monitors the adequacy of generation capacity over time and reports to the CER accordingly.

In line with international norms, the generation system in Ireland is designed, planned and monitored such that it meets a standard which requires it to meet all reasonable demands for supply. This is designed to ensure that, in designing the system, the appropriate balance is met between protecting security of supply and the cost of building and running the system. At my request, the adequacy of electricity generation is being kept under consistent collective review by my Department in consultation with the CER and EirGrid. The most recent advice to me from CER and EirGrid is that the generation system is currently adequate to meet demand, and provides a sufficient margin to meet the security standard. The CER has also advised that there is sufficient generating capacity, both installed and planned, on the system to meet the predicted demand in the short term. The CER advises me that this assessment is predicated on planned developments in power generation including the addition of almost 550MW of new generation capacity in 2006, (at Tynagh, Co. Galway and Aughinish, Co. Limerick), the expected commissioning of a second new 400MW plant in Autumn of this year (at Huntstown, Co. Dublin), the further development of almost 900MW of new plant in the South West by the end of 2009 and planned improved interconnection on the island of Ireland and with the U.K. The Government has conveyed to CER its view that additional mid merit capacity should be put in place in the short to medium term.

The CER is taking measures to facilitate the development of the system such that it remains adequate to maintain the security standard. Significant levels of investment have been made in the Irish transmission system in recent years with plans for continued investment to the end of this decade. Between 2002 and 2010, almost €1 billion will be invested in the Irish transmission system, which will ensure, to the greatest extent possible, that the system is capable of handling exceptional circumstances.

The Government is also concerned to ensure that adequate provision is also made to encourage the development of an electricity portfolio, which can support and complement the ambitious targets which we have now set for renewable growth. Decisions in this regard by the CER, EirGrid and the Government will be informed by the need to ensure capacity and competition in the generation sector while reflecting the overriding consideration of security of supply.

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 397: To ask the Minister for Communications, Marine and Natural Resources the actions he proposes to further diversify the fuel mix for electricity generation and reduce dependence on oil and gas; and if he will make a statement on the matter. [6137/07]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I have already increased a 13.2% target addressed to Ireland in an EU Directive to increase the contribution of electricity from renewable energy sources to 15% by 2010. The Government has indicated plans to further increase that target to 33% by 2010.

The support programme operated by my Department to complete the increased 2010 target is commonly referred to as REFIT, (Renewable Energy Feed In Tariff). Every project submitted in REFIT to date which has complied with the essential requirements regarding a connection and planning permission has been accepted into the support programme.

REFIT is designed to support proven technologies primarily. Other renewable energy technologies which remain in the research or developmental phase can access the "research, development and demonstration programme" operated by Sustainable Energy Ireland. The development of an Irish biofuels market and the increased development and deployment of bio-energy resources in Ireland is a key priority for the Government. A range of initiatives are in place to support the development of a biofuels sector in Ireland.

On Monday 12th February I signalled my intention to introduce a Biofuels Obligation by 2009, which will require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales. In announcing the obligation, I have also committed to achieving 5.75% market penetration of biofuels by 2009, in advance of the date proposed for such a target in the EU Biofuels Directive. I have also committed to achieving 10% market penetration of biofuels in Ireland by 2010.

The introduction of the Biofuels Obligation will build on the success of the two biofuels excise relief schemes which were rolled out in 2005 and 2006.

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