Tommy Broughan (Dublin North East, Labour)
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Question 1430: To ask the Minister for Communications, Energy and Natural Resources the amounts that were spent by EirGrid on each of the ancillary services in each of the past five years; the persons to whom they were paid; and if he will make a statement on the matter. [1058/08]

Eamon Ryan (Dublin South, Green Party)
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I am advised that EirGrid's Ancillary Services currently pay for the services needed for operating reserve, reactive power and black start which are essential for system security. These services are an operational matter for EirGrid as the State Body responsible for system security and generation adequacy.

EirGrid informs me that operating reserve arises in the event of a loss of output from a generator, group of generators or an interconnector, or an unexpected change in system demand. Generators must provide a fast acting response to make up the shortfall in generation and units are paid for being available to provide this response. When the reserve is utilised, generators are paid for the additional energy supplied through the energy market.

The second ancillary service relates to reactive power. I understand from EirGrid that generation units can vary their effect on the system voltage to compensate for transmission lines losses and customer loads. The provision of reactive power by all generation units for voltage support is vital to maintain a secure and stable transmission system.

In addition, "black start" is a vital system service whereby electricity can be provided to the transmission system by generators who have a separate power source on-site which can start the generator independently of the grid. This service enables the system to restart in the event of a major incident.

EirGrid has provided the following table, which shows details of the amounts paid for each of these services for the period 2003 to end October, 2007:

Aughinish Alumina, ESB, Synergen, Tynagh Energy, Edenderry Power and Huntstown Power Company received payments for the provision of ancillary services over the period.