Dáil Éireann Debate, Wednesday - 10 March 2021
39. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if EirGrid has recently sought between €700 million and €3 billion for grid investment; if so, the new and existing projects this will fund; the way in which he plans to deliver this crucial grid investment while also working with local communities; his views on delays to key grid improvements and if he will make a statement on the matter. [13517/21]
View answerI ask the Minister if EirGrid has recently sought additional funding for grid investment; if so, the new and existing projects this will fund; the way in which he plans to deliver this crucial grid investment while also working with local communities; his views on delays to key grid improvements; and if he will make a statement on the matter.
Matters relating to the cost of grid investment and projects funded are operational matters for EirGrid and the Commission for Regulation of Utilities, CRU. EirGrid is the transmission system operator and its responsibilities include the appropriate development of the grid and power system to achieve our energy policy objectives and underpin economic development. The CRU is the independent energy regulator and, through a formal price review process, it decides on appropriate spend by EirGrid on a five-year basis.
The recent price review decision by the CRU on the allowable spend on our electricity grid over the next five years signalled a significant and necessary increase in funds for grid enhancement. EirGrid already seeks to optimise the existing electricity grid to minimise the need for new infrastructure through upgrades, refurbishment or up-voltaging of existing infrastructure, where possible. However, in light of the Government's ambition to have 70% renewable electricity on the power system by 2030, and with demand profiles increasing as we continue to electrify more sectors of our economy, further investment in the power grid is required over the coming decade.
I recognise the vital role that communities across Ireland are going to play in delivering on this target. Working in collaboration with local communities to ensure that grid development is appropriately delivered will be crucial as we continue to decarbonise our energy system and wider economy. The Government takes the commitment to community engagement and acceptance seriously, as does EirGrid. In this respect, EirGrid has this week launched a detailed consultation document, entitled Shaping Ireland’s Electricity Future, which outlines innovative approaches to developing the grid to meet our ambitious 2030 renewable electricity target and reduce greenhouse gas emissions.
It is acknowledged there needs to be significant investment in electricity and energy infrastructure. I want to raise the issue of data centres and the impact they will have on the grid. In addition, I want to raise the issue of our continued dependence on fossil fuels and the expectation that has been reported in the media by a number of commentators that we will be dependent on fossil fuels for far longer than the Minister intends or is providing for, and that we are facing a cliff edge in about 2026 and are not prepared for it.
The new consultation from EirGrid takes a very good approach because it looks at the wider picture of how we develop our society. It is not just about emissions reductions or bringing forward renewables, but the long-term big picture thinking about what type of energy system we have to serve our society. That poses various questions to the public. Should we perhaps continue what has been done in the last ten or 20 years, which was more developer-led whereby the developers of renewable power said where they wanted to go, or should we go for demand-led? Should we move and adjust some of the demand to match the power system we need? We will probably take a combination of various approaches, but one of the things we will ensure is that demand, be it from data centres or other large energy users, is planned in a way that lowers the cost, minimises emissions and ensures we have a fully sustainable system. That may involve locating data centres close to where the power is, or restricting in certain areas where the grid cannot cope with the addition. However, it will not say "No" to data centres because we need them as part of the wider economy.
The question then arises of the Minister's and the Government's confidence that we are not walking ourselves onto a cliff edge in 2026 in terms of the increasing demands on the network, the shift away from fossil fuels and how to square the two. What is the Minister's expectation of demand into the future for fossil fuel for energy and electricity production in the State? Does he believe it will extend far beyond 2026 and to what extent will that be? What percentage of our energy might we still be expecting to deliver through fossil fuels at that stage?
We will be doing what many other countries are now committed to, such as net zero by 2050 in the UK and what California is doing, which is net zero in the same timeframe. Other countries in Europe are aiming for more ambitious times sooner than that. China and Germany are doing this. The world economy is switching towards this new energy system because it is better. By 2050, and it hard to have a crystal ball, it is likely there will be a variety of different technologies that provide back-up and support to what will largely be a renewable electricity power system, with electricity having an increasing role in transport, heating and a range of different sectors. That may involve carbon capture and storage, CCS, where one takes the carbon out in the generation process and stores it geologically. It may involve a switch to new green hydrogen fuels, whereby through electrolysis we can convert our superabundance of renewable power into fuels like that, which can provide back-up, and other storage systems. There will probably be a variety of demand management, with sophisticated switching on and off of energy uses to store and balance electricity. It is going to come because it is a better system. It is more competitive, cleaner, indigenous and we are good at it. That is why I am very confident in EirGrid's ability to help make this happen.
