Security of supply in relation to electricity in Ireland is the statutory responsibility of the independent Regulator, the Commission for Energy Regulation (CER). The independent Transmission System Operator (TSO), EirGrid, monitors the adequacy of generation capacity over time and reports to the CER accordingly.
In line with international norms, the generation system in Ireland is designed, planned and monitored such that it meets a standard which requires it to meet all reasonable demands for supply. This is designed to ensure that, in designing the system, the appropriate balance is met between protecting security of supply and the cost of building and running the system. At my request, the adequacy of electricity generation is being kept under consistent collective review by my Department in consultation with the CER and EirGrid. The most recent advice to me from CER and EirGrid is that the generation system is currently adequate to meet demand, and provides a sufficient margin to meet the security standard. The CER has also advised that there is sufficient generating capacity, both installed and planned, on the system to meet the predicted demand in the short term. The CER advises me that this assessment is predicated on planned developments in power generation including the addition of almost 550MW of new generation capacity in 2006, (at Tynagh, Co. Galway and Aughinish, Co. Limerick), the expected commissioning of a second new 400MW plant in Autumn of this year (at Huntstown, Co. Dublin), the further development of almost 900MW of new plant in the South West by the end of 2009 and planned improved interconnection on the island of Ireland and with the U.K. The Government has conveyed to CER its view that additional mid merit capacity should be put in place in the short to medium term.
The CER is taking measures to facilitate the development of the system such that it remains adequate to maintain the security standard. Significant levels of investment have been made in the Irish transmission system in recent years with plans for continued investment to the end of this decade. Between 2002 and 2010, almost €1 billion will be invested in the Irish transmission system, which will ensure, to the greatest extent possible, that the system is capable of handling exceptional circumstances.
The Government is also concerned to ensure that adequate provision is also made to encourage the development of an electricity portfolio, which can support and complement the ambitious targets which we have now set for renewable growth. Decisions in this regard by the CER, EirGrid and the Government will be informed by the need to ensure capacity and competition in the generation sector while reflecting the overriding consideration of security of supply.