Written answers

Wednesday, 19 December 2007

Department of Communications, Energy and Natural Resources

Electricity Generation

3:00 pm

Photo of Michael NoonanMichael Noonan (Limerick East, Fine Gael)
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Question 96: To ask the Minister for Communications, Energy and Natural Resources the proportion of the fuel used in electricity generation here that is imported from the UK; the action he proposes to reduce this dependence on one country for this vital function; the contingency plan he has in place to deal with a fuel shortage in the UK and the consequent effect on the electricity generation here; and if he will make a statement on the matter. [35474/07]

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 104: To ask the Minister for Communications, Energy and Natural Resources the percentage of Ireland's overall energy supply which is imported from the UK; his plans to reduce Ireland's dependence on one country; the position regarding the proposed publication of the all-island gas storage and LNG study; and if he will make a statement on the matter. [35631/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 96 and 104 together.

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, coal and oil accounted for 50%, 19% and 9% respectively of electricity generation in Ireland in 2006 while renewable sources provided 11% of overall generation. I am advised by the CER that, with increasing usage, natural gas now 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 over 90% 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 Framework 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 Framework include long term strategic planning by the Commission for Energy Regulation (CER) in relation to security of gas supply and working within the European Union to deliver fully integrated 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. The planned development of a merchant LNG storage facility at Shannon may also have a positive impact on the security of our gas supply and improve our connectivity to the global gas market.

Earlier this year, my Department in conjunction with the Department of Enterprise, Trade and Investment for Northern Ireland (DETINI) commissioned a joint study on a common approach on natural gas storage and liquefied natural gas (LNG) on an All-Island basis.

The study has assessed the medium to long-term position with regard to security of natural gas supply on an all-island basis, to consider the scope for a common approach on natural gas storage and LNG with a view to optimising that position, and to make recommendations accordingly. The report has been received in recent weeks and the findings are currently being assessed by both Departments, North and South.

The connection of the Corrib gas field, with its estimated capability to supply some 60% of our annual natural gas requirements over the first 3-4 years of production, will also significantly reduce our dependence on imports during that period.

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.

To further reduce our dependence on imported fuel, 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 also a priority to ensure the provision of flexible generation plant to accommodate electricity coming on to the system from wind generation.

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. My Department is currently undertaking a strategic review of security of oil supplies which will include consideration of security of commercial access to oil supply.

In relation to contingency planning, Bord Gáis Networks, as National Emergency Manager for the gas network, has detailed arrangements in place to maintain supplies in the event of a shortage of gas imports from the UK. BGN also works closely with the ESB and EirGrid, under the direction of the CER, to ensure coordination between the emergency arrangements for both the gas and electricity networks. Furthermore, BGN participates in the UK arrangements for gas emergencies, and are thus able to keep abreast of both the procedures in place in the UK, and the potential impact that any curtailment of gas supply in the UK could have on Ireland.

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