Security of energy supply a key priority, Taoiseach tells Dáil

The Government is doing “everything we possibly can” to ensure security of energy supply this winter and “winters beyond”, Taoiseach Micheál Martin has insisted in the Dáil.

He was responding to Labour leader Alan Kelly who warned that a "perfect storm" was brewing on energy supply.

He told the Taoiseach it could be “the rock on which you perish”.

During leaders’ questions the Tipperary TD said there had been seven amber alerts within the energy system a single day in September.

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He said that that month “I asked the Taoiseach if he would guarantee he could keep the lights on”.

"He couldn't answer that question," so Mr Kelly said he was asking the same question again as he pointed to Norwegian company Equinor which had pulled out of the Irish market and a €2 billion wind farm project with the ESB.

The Government had been advised of the short to medium-term risk to electricity supply and that that there was “an increased likelihood of more frequent system emergencies with potential for some electricity customers to lose power” if action was not taken, Mr Martin said.

The Department and Minister were working very closely with the Commission for the Regulation of Utilities (CRU) and national grid operator Eirgrid to take necessary actions to address the issue but, he said, it was an international problem.

Mr Martin added that “we’re doing everything we possibly can to ensure security of supply, but not just this winter, but more critically for next winter and winters beyond”.

The Taoiseach also promised Mr Kelly that he would seek information about a collapsed electricity deal in which the State-owned Eirgrid made a €10 million down payment to the ESB on a €110 million contract that did not go ahead.

The Labour leader asked how the payment was made, if it was sanctioned by the Minister for Environment and where the money was now.

Expressing serious concern about the regulation of energy supply he compared it to a lack of regulation of banking.

Mr Kelly said “over a decade ago, bad politics, horrendous politics and lack of regulation in banking destroyed this country.

“I’ve deep concerns about how our energy market has been regulated over the last number of years.”

He said that in May Eirgrid sought 200 megawatts of emergency power, under the direction of the CRU. “It was going to cost €110 million. The plan was for these emergency gas operators to be in place for 22 weeks.”

Use of privilege

Using Dáil privilege Mr Kelly said the contract was awarded to ESB, but “Eirgrid messed up the tender”.

He added that "another company, Tynagh Energy threatened to go the High Court arguing the deployment process run by Eirgrid was anti-competitive. So the plan was abandoned," he said.

“We need to find out more information in relation to this,” he said, asking if the €10 million had been repaid and pointing out that a new tender is now being run by for the same power.

Mr Kelly also said that marine area planning delays were holding up offshore wind generation which meant that wind farms could not get onto the grid.

He asked the Taoiseach what assurance he could give renewable energy projects including solar and offshore wind farms that the regulatory system would be fit for purpose.

Mr Martin insisted there is a regulatory framework governing the provision of electricity supply.

He said the CRU is independent and in charge.

The CRU was in charge and the Government did not have power to “directly intervene and do what it likes in terms of the energy markets.”

He promised Mr Kelly to “provide any information that you require” in relation to the abandoned tender, warning: “I would not jump to conclusions. Let’s wait for the full, transparent, information.”