Simon Coveney (Cork South Central, Fine Gael)
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Question 696: To ask the Minister for Communications, Energy and Natural Resources the percentage of Ireland's overall energy supply which is imported from the UK; and if, in the context of such facts or that 87% of Ireland's natural gas supplies are imported from there, actions are planned to reduce Ireland's dependence on one country. [31340/07]

Eamon Ryan (Dublin South, Green Party)
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Currently over 90% of Ireland's energy needs are provided for by imports. In order to ensure the security of our energy supply, the Government's objective is to reduce our reliance on imports and to significantly enhance diversity of energy sources.

Natural gas currently accounts for over 60% of electricity generation in Ireland. With the decline of the Kinsale gas field and pending the full development of the Corrib field, we now import some 95% of our natural gas from the UK. Natural gas transported through the UK network comes from fields in the North Sea, the Netherlands, Norway and Russia. The Energy Policy White Paper points to the need to develop longer term strategies to reduce over-reliance on gas imports from the UK. The actions set out in the White Paper include long term strategic planning by the Commission for Energy Regulation (CER) in relation to security of gas supply and working in the EU to deliver regional gas markets for Northern Europe and diversification of supply.

The CER has granted a gas storage licence to Marathon Oil Ireland Ltd to make the full capability of its depleted Kinsale facility, which has a capacity of 7 billion cubic feet (bcf), available to third parties. This is the first such storage facility in Ireland and BGE has contracted to use over 5 bcf of it. Work is also nearing completion on an All-Island study overseen by my Department and the Department of Enterprise, Trade and Investment in Northern Ireland on a joint approach to gas storage and Liquified Natural Gas (LNG). The planned development of a merchant LNG storage facility at Shannon will also have a positive impact on the security of our gas supply and improve our connectivity to the global gas market. The connection of the Corrib gas field, with its estimated capability to supply some 60% of our annual natural gas requirements over a span of 15-20 years, will significantly reduce our dependence on imports during that period.

As regards the generation of electricity, the Government has set ambitious and essential targets for the increased penetration of renewable energy. Connected wind capacity will reach over 900 MW by year end, which will represent a very significant increase of over 25% of installed wind capacity since the start of 2007. It is a priority to ensure the provision of flexible generation plant to accommodate electricity coming on to the system from wind generation. The establishment of the All-Island Single Electricity Market is also a key development, which will contribute to ensuring the security, reliability and competitiveness of electricity supplies throughout the island.

Existing gas interconnection and planned electricity interconnection between Ireland and Great Britain is a key plank in our security of energy supply strategy. The current interconnection capacity with the UK Grid (through Northern Ireland) of 300 MW, will be increased by 500 MW with the delivery of the new East West electricity interconnector between Ireland and Wales by 2012. Enhanced interconnection, in both electricity and gas, will assist in promoting the regional energy market, in line with EU security of energy internal market objectives.

As regards imports of oil, in 2005, the latest year for which definitive figures are available, 65% of Ireland's oil imports were sourced from the UK, with crude accounting for 12% and products accounting for 88% of those imports. In the same year Norway accounted for 28% of our oil imports, of which crude consisted of 93% and products 7%. The Irish downstream industry is fully privatised, liberalised and deregulated. We are currently undertaking a strategic review of security of oil supplies which will include consideration of security of commercial access to oil supply.