Emergency power generators may need to be kept in place for longer than anticipated to ensure electricity supplies during winter months, Minister for Energy Eamon Ryan has indicated.
Mr Ryan said that while the arrangement might need to be extended to ensure back-up at times of peak demand, he was sure some of the costs involved could be recovered by the State.
Appearing before the Oireachtas Committee on Environment and Climate Action, he sought approval for a supplementary estimate of €1.362 billion for the new energy credit scheme, including €150 million to complete “the emergency purchase of power generation equipment” by Eirgrid in coming weeks.
The latter measure is to secure 450 megawatts of additional temporary generation capacity for winter 2023-2024 through to winter 2025-2026 to offset a potential capacity shortfall in electricity supply.
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Two sites for the project costing a total of €350 million would be announced shortly and deploy jet engine technology to generate power, he confirmed. They would be using distillate fuel rather than gas, and would in time be capable of switching to hydrogen, while their delivery was scheduled for autumn 2023.
The Minister told Deputy Darren O’Rourke (SF) the price was as anticipated by his department, despite inflation, increases in the cost of steel and supply disruptions caused by the Ukraine war.
Fast-reacting generators
Even if they had to be deployed in 2026-2027, he believed they could be sold on for use as fast-reacting generators deployed on the island of Ireland in gas-fired or hydrogen-fired back-up plants.
The failure to secure new plants under a previous auction was due to supply-side problems and difficulty with a “very tight” planning system, Mr Ryan said. In his view, the 2000 Planning and Development Act was too complicated and not fit for purpose.
People Before Profit TD Bríd Smith said Ireland’s power shortage problem arose from a 9 per cent increase in demand over the past five years due to the growth of data centres – whereas nine other EU countries had no seen increase in demand.
Mr Ryan said the Government had recognised the problem and all new data centres must now comply with energy security requirements, notably ensuring flexibility and back-up in their power-supply systems. The rules for connection were changed but “it’s not saying no to data centres”, he underlined.
The Minister expected facilities at the Corrib gasfield off Mayo when exhausted would be capable of supporting offshore wind development.
The supplementary estimate includes €3.5 million to assist local authorities complete climate action plans; €2.5 million for the Broadcasting Authority of Ireland Sound and Vision fund for climate-related projects; and €1 million for An Bord Pleanála to help fund a specialist marine and climate directorate overseeing planning for offshore wind development.
‘Expertise gap’
Mr Ryan said “planning and permitting” for offshore wind development had to be done in a timely way, otherwise renewable energy projects would go elsewhere in northwest Europe.
Currently, however, “people are the biggest constraints” to development of the sector in Ireland, “which puts at risk everything we are doing”. He hoped the expertise gap would be filled by third-level institutions.
Mr Ryan told Deputy Richard Burton (FG) Ireland was likely to secure up to €2 billion from the EU energy windfall tax and solidarity fund to ease the impact of the energy crisis. Figures would be clearer in coming weeks when final details were agreed.
The role of local authorities in Ireland’s energy transition went far beyond ensuring their buildings and transport fleets were energy-efficient, the Minister said. They were critical to rollout of district heating in their areas, renewable energy development and even grid development. “Councils that are ahead of the curve will see more investment in their areas; more jobs and a wider rate base,” he believed.
In response to Social Democrats TD Jennifer Whitmore who said the energy credit system should have been more targeted towards the less well-off, Mr Ryan said “It is appropriate that we are supporting the vast majority of householders.”
Targeted supports came under social welfare elements in the budget, which on their own would not have been a sufficient response. He confirmed the credit measure was climate-proofed.
