Dáil Éireann Debate, Wednesday - 15 June 2016
197. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources his plans to conduct a cost-benefit analysis of the investment in wind energy and increased generation and of the savings in fossil fuels such as gas in each of the years 2012 to 2015, inclusive; and if he will make a statement on the matter. [16271/16]
View answerAccording to the Sustainable Energy Authority of Ireland (SEAI), Ireland had an energy import dependency of 85% in 2014, which was estimated to cost €5.7 billion. This represents a decrease from a peak of 91% in 2006 and reflects the expanding use of Ireland’s indigenous renewable energy resources, particularly wind energy over the same period.
From 2012 to the end of 2014, the use of wind energy and other renewables in Ireland increased by 29%, while the total cost of fossil fuel imports avoided in the sector over the same period is estimated at circa €855 million. The represents avoided costs of fossil fuel imports of €300 million in 2012, €300 million in 2013 and €255 million in 2014.
While the information for fossil fuel costs savings in 2015 is not available yet, I will arrange for the Deputy to receive this information once it is produced.
While the inherent benefits of increased use of wind energy in Ireland are apparent in terms of displacement of fossil fuels, consequent emissions reductions, increased security of supply and reducing the potential impact of fossil fuel price volatility, it is equally important to understand the potential cost of this transition.
Quantifying this cost is a complex task due to the number of influencing components. For example, while renewable electricity generation introduces savings by reducing the need to burn fossil fuels, this is offset to a certain extent by increased costs of system operation, the need for additional network investment, and the capital and operational costs of the renewable generators. In the past a number of studies have been completed by various parties in the energy sector focusing on particular aspects of this issue. However, a broad based analysis is being finalised by my Department, the SEAI, EirGrid and the CER, which looks at the range of components contributing to the projected costs and the financial impact on the electricity customer. The report will be published this year once the work has been completed.
