Written Answers - Energy Supplies.
Bernard J. Durkan
Question:
104
Mr. Durkan
asked the
Minister for Public Enterprise
if extra gas and electricity supplies are available through the interconnectors; if these supplies are adequate to meet requirements in the near future; and if she will make a statement on the matter.
[26226/99]
Bernard J. Durkan
Question:
105
Mr. Durkan
asked the
Minister for Public Enterprise
the plans, if any, she has to ensure the provision of adequate supplies of gas and electricity to meet industrial requirements in each of the next five years; and if she will make a statement on the matter.
[26227/99]
Bernard J. Durkan
Question:
110
Mr. Durkan
asked the
Minister for Public Enterprise
the proposals, if any, she has to meet increased demands in respect of gas and electricity supplies; and if she will make a statement on the matter.
[26232/99]
I propose to take Questions Nos. 104, 105 and 110 together.
The record economic growth that the country has experienced in the past five years and the forecast for continued growth are creating a need for the provision of additional infrastructure in the areas of electricity and gas.
A report entitled Generation Capacity Requirements to 2005 was published by ESB in consultation with my Department in October 1998. That report projected that additional electricity generating capacity in excess of 200 megawatts was required by winter 2001 and that over 800 megawatts would be needed by 2005.
Work is already under way on two electricity stations, which will increase electricity generating capacity over the next few years. The new gas unit at Poolbeg will increase capacity by 160 megawatts and is due to come on stream by the end of this year. The new IVO plant at Edenderry will add 120 megawatts of capacity, and is now due for completion in December 2000, more than six months ahead of schedule.
From February 2000, 28% of the electricity market will be open to competition, rising to 33% in 2003. Any interested party, including the ESB, will be able to apply to the Commission for Electricity Regulation for the necessary licences and authorisations to build new plant and start supplying eligible customers.
As the Deputy will be aware, a number of entities, apart from the ESB, have signalled their intention to build new electricity plant under the provisions of the EU electricity directive.
The Deputy will also be aware of the letter I issued to the chairman of ESB on 1 December 1999, which set out the conditions under which I would be prepared to give approval for further capital expenditure by the ESB on its proposed 400 megawatts gas fired plant at Ringsend.
The existing electricity interconnector has a capacity of 250 megawatts and is already being used by the ESB as required to meet demand. The Deputy will be aware of a recent decision to increase the planned Northern Ireland-Scotland interconnector from 250 megawatts to 500 megawatts to come onstream later in 2001.
In regard to gas, based on forecasts of final demand for natural gas, there is adequate capacity in the natural gas network, subject to some development of the on-shore network, to meet final demand for the next four or five years. However, a new interconnector or a new source of gas supply will be required by October 2004 at the latest.
In late 1997 my Department and BGE jointly commissioned a study of natural gas demand and related infrastructural requirements to the year 2025. The consultants examined a range of options and recommended the provision of a second Scotland-Ireland interconnector as the optimal solution on cost and other grounds. Since the study was launched there have been a number of developments including the possibility of a commercial gas find in the Corrib field, the interest shown by a consortium in the provision of a North-South interconnector and by other parties in the provision of additional gas pipelines to and within Ireland.
My Department engaged economic consultants to undertake an economic evaluation of the various supply options proposed under the gas 2025 study and the other possibilities that I mentioned above. The consultants confirmed the findings of the gas 2025 study that a second Scotland-Ireland interconnector, parallel to the existing interconnector, was the preferred choice. However, they recommended that a decision on future supply infrastructure should not be taken until the position regarding the prospect of the commercial development of the Corrib field is clear.
In the meantime, BGE is proceeding with plans to upgrade the existing interconnector to its ultimate design capacity. This involves upgrading existing compression facilities and construction of additional facilities.
Although, there is adequate capacity in the natural gas network to meet forecast final demand for the next four or five years, BGE has received applications for capacity in the natural gas network for the purposes of power pro duction which, in aggregate, significantly exceed the capacity that is available in the immediate to short term.
In order to meet expected increased demand levels for electricity from the industrial, commercial and residential sectors, I have decided that the available capacity in the natural gas network will be reserved specifically for the purpose of fuelling new gas-fired power stations and will be allocated to selected power producers.
This morning I met Sir Reg Empey, the newly appointed Minister in the Northern Ireland Executive, and we had a broad ranging discussion on issues of mutual interest. In the specific area of energy, we agreed that it would be very helpful to mark this historic event on this island and to give concrete expression to this historic period of change on this island by a series of practical decisions. We have decided, therefore, to deepen the co-operation that already exists and to encourage the grid operators on both sides of the border to move ahead with their plans for the upgrading of the electricity interconnector and the reinforcement of the electricity system on both sides of the Border.
