Written Answers. - Electricity Generation.
Ivor Callely
Question:
88
Mr. Callely
asked the
Minister for Public Enterprise
the supports in place to ensure Ireland has sufficient energy supplies; the level and location of these supplies; the expert views in relation to these supplies; and if she will make a statement on the matter.
[20891/99]
In relation to electricity, the ESB currently has responsibility for ensuring that electricity demand is met. The company has approximately 4,300 megawatts of installed capacity located in various stations throughout the country.
The EU Electricity Directive 96/92/EC concerning common rules for the internal market in electricity requires that approximately 28 per cent of the Irish electricity market be opened to competition by February 2000. This will allow independent electricity suppliers to contract directly with eligible customers for the supply of electricity. Eligible customers are those who will be free to choose their electricity supplier in the competitive market. Customers who remain on the public franchise tariff will continue to be supplied by ESB.
Continuing growth in the economy has led to an unprecedented demand for electricity. This increase in demand means that new generation capacity will be required by 2001. While a number of projects are in the pipeline for the provision of this capacity, the ESB is successfully managing the increased demand for electricity. In addition, I announced recently in the Green Paper on sustainable energy an increased target of 500 megawatts of renewable energy capacity to be achieved by 2005.
Liberalisation of the electricity market will necessitate new arrangements to ensure security of supply for consumers. As a result of the changing role of the ESB, the transmission system operator will have the ultimate duty to ensure that there is sufficient capacity in the electricity system to meet customer needs.
Gas supplies were solely reliant on Kinsale Head until the Ireland-Scotland interconnector commenced the transport of gas in 1993. Since that time, there have been two supply sources and to that extent, an improvement in supply security. Both sources involve both marine and onshore pipelines.
The capacity of the interconnector is 10 million standard cubic metres per day, and is planned to increase to 14 million standard cubic metres by October 2000 with compression at Moffat, and to 17 million standard cubic metres by October 2001 with compression at Brighouse Bay.
Once the Kinsale Head field depletes, it will have been replaced either by a new interconnector, or by new production from offshore Ireland. The configuration of the supply system will still consist of two sources involving both marine and onshore lines, and this would be true regardless of the route taken by the new Scottish interconnector.
Under International Energy Agency and European Union requirements, Ireland is obliged to maintain a minimum of 90 days oil stocks and the National Oil Reserves Agency is responsible for ensuring that this objective is achieved. NORA is funded by a levy of 0.375 pence per litre on oil products.
The latest figures available – July 1999 – show that Ireland had 94 days of oil stocks. These consisted of 21 days of crude oil stocks stored in Ireland at the Whitegate oil refinery and Whiddy oil terminal, 54 days of products stored at various locations in Ireland and 19 days of products stored abroad in Sweden, the UK, the Netherlands and Denmark for repatriation in the event of an emergency. These arrangements satisfy the IEA and EU standards for the maintenance of oil reserves.
In order to provide essential support for the refinery, which the Government considers to be a key element in Ireland's overall strategy for security of oil supply oil companies are required to obtain 20 per cent of their supplies of certain products from Whitegate at prices set by the Minister. The impact of this arrangement, known as the mandatory regime, on the consumer is cur rently limited to approximately 0.2 pence per litre and the yield to the refinery is subject to a ceiling of £8 million per annum.
As to the demand for fossil fuels such as oil, coal and peat there is no particular concern about security of supply. Over time, it is envisaged that convenience fuels such as gas and oil will be substituted for coal and peat.
The Minister for the Marine and Natural Resources has responsibility for offshore exploration for, and supplies of, indigenous natural gas.
