Dáil Éireann Debate, Wednesday - 11 October 2023
50. Deputy Brian Stanley asked the Minister for the Environment, Climate and Communications the expenditure in 2020, 2021, 2022 and 2023 on generators purchased to provide dispatchable power to the grid when other sources are not supplying sufficient quantities. [44238/23]
View answerThe Commission for Regulation of Utilities (CRU) has a statutory responsibility to ensure security of electricity supply. A key mechanism to achieve this is to ensure sufficient dispatchable generation capacity which is delivered through the Capacity Remuneration Mechanism (CRM) under the overall regulatory supervision of the Single Electricity Market Committee (SEMC). The dispatchable generation capacity sought via the Capacity Remuneration Mechanism auctions are delivered by developers in the open market to be enduring capacity that will support an up to 80% renewable powered electricity system into the 2030s. The successful and expeditious delivery of all capacity market projects is a critical component in ensuring enduring security of supply.
The operation of the CRM is currently being reviewed by the SEMC and recommendations are expected shortly. It is anticipated these recommendations will further support delivery of this critical infrastructure.
The costs of the CRM are delivered on an auction-by-auction basis and are a matter for the SEMC and CRU. Generation capacity is not exchequer funded but is instead funded through a CRU approved supplier capacity charge in customers bills. The Deputy may wish to note that CRU provides a dedicated email address for Oireachtas members, which enables them to raise questions to CRU at oireachtas@cru.ie for timely direct reply.
In addition to the standard CRM dispatchable capacity, in order to cover an adequacy gap for the next few winters there has been Temporary Emergency Generation (TEG) procured to ensure security of electricity supply. The CRU has advised that significant elements of the Temporary Emergency Generation projects remain under commercial negotiation at this time and therefore cost certainty is not available.
Concerning Exchequer funding for these projects, following on from the EirGrid Act 2022, the Exchequer provided two supplementary estimates to enable timely delivery of these projects – €200m in July and €150m in October 2022. The Department authorised €151m of the amount allocated for release to EirGrid in line with contractual progress by end year 2022 and the balance was returned to the Exchequer. The Exchequer allocation does not equate to the total project costs which will be funded through Transmission Use of System (TUoS) tariffs. Further Exchequer funding is neither budgeted for nor at this time deemed to be required in 2023 to enable completion for these projects.
