Dáil Éireann Debate, Wednesday - 17 July 2013
10. Deputy Willie O'Dea asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the recently published plans in the UK for energy rationing; if he foresees any such plans being required here; the long-term plans he has to ensure energy security here; and if he will make a statement on the matter. [35050/13]
Amharc ar fhreagraThe energy regulator for Great Britain, Ofgem, published its most recent annual electricity capacity assessment on 27 June. It analysed security of supply in Great Britain over the forthcoming five winters. It shows that the buffer between peak demand and supply could be lower than previously expected and proposed for consultation certain measures to address this issue. This report and the associated proposed measures were publicised by elements of the British media in terms of planning for energy rationing. However, I understand that there are no plans in the UK for energy rationing. I read in a newspaper today of reports that the Government is back-tracking on its commitments in the national broadband plan.
I assure the House that there is no basis for such reportage, nor is it true in this case that there is rationing planned for the UK.
In contrast, the latest, All-Island Generation Capacity Statement for 2013-22, published in January this year, forecast that the adequacy situation in this country is positive for the next ten years. Indeed there is a considerable generation surplus forecast for the Irish electricity system. In terms of long term plans for energy security, Ireland’s approach is to diversify fuels and supply sources. The use of indigenous gas and access to gas and liquefied natural gas storage will enhance diversity. Continuing to develop indigenous renewable electricity is also a key strategy in ensuring supply diversity and supports are in place to ensure we attain our 2020 target of having 40% of electricity generated from renewable sources.
The network companies, ESB Networks, EirGrid, BGE and Gaslink, will continue to improve the resilience of our electricity and gas networks in their development plans. These actions will continue to enhance our long term energy security. Moreover, the Sustainable Energy Authority of Ireland, which is funded and assisted by my Department has, over the past decade, been very proactive in maximising energy efficiency. Several successful initiatives have been undertaken and continue. New initiatives are also being considered which will further improve the efficiency of energy consumption. As well as enhancing long term energy security, we must be mindful of the potential for unexpected short-term disruption to energy supplies and in that regard there are detailed operational plans in place. In the unlikely event of a major disruption EirGrid and Gaslink would implement their respective emergency plans to deal with the situation.
Although the Minister said in his reply that nothing could be further from the truth, when one reads the article and the reference to preparing for energy rationalisation-----
We are at cross-purposes. Deputy Moynihan referred to rationalisation but he meant rationing.
Yes. I beg the Minister’s pardon. A couple of issues arise. Are any energy shortage shocks foreseen in the short term or long term in the information received by the Minister from the various bodies? How strenuous have the stress tests been that have taken place? Is the Minister satisfied that the sale of Bord Gáis will not create any difficulty for the energy market in the short, medium or long term?
Touch wood, but I think I can give the Deputy the assurance he seeks in the sense that no such circumstances are envisaged. That said, we are at the end of the pipeline. We are a remote island on the verge of Europe and we saw what happened only a couple of winters’ ago when Russia turned off the pipeline. The Deputy is asking me to look into a crystal ball. In terms of our capacity to meet market demand at the moment and for the foreseeable future, unless there were some kind of cataclysmic event affecting supply from the neighbouring island, no such set of circumstances are foreseen.
I can assure the Deputy that in respect of the privatisation of the energy division of Bord Gáis Éireann, it should have no impact on security of supply because the State will retain ownership and control of the networks in this country, even if Bord Gáis Éireann has a different name at that time. That ought not to be an issue.
I agree with the Deputy that our people generally take for granted that there is no need to be concerned about energy security. They presume that, when they plug in kettles in the morning or turn on switches at night, there will be light and that the kettles will boil. Energy security must be a concern. Yesterday, I met the National Oil Reserves Agency, NORA, the body responsible for the acquisition and storage of critical oil supplies to meet our 90-day target. It has made tremendous progress in recent times, with 71% of oil stocks being stored in this jurisdiction for the first time ever. Even five years ago, that figure was 43%. Gradually, NORA has built up to 71% of our critical oil stocks needs being sourced in this jurisdiction.
I do not trivialise the question. This is a serious issue, but people would only acknowledge it as being critical if it arose.
With the new Paul O'Connell adverts, this matter is under discussion. People are of the opinion that the supply is endless. There should be an awareness of energy conversation.
A figure was mentioned as regards oil and so forth. The Minister has met various stakeholders. According to the ESB, 40% of its usage was from wind energy at one stage in its production. Can this figure be sustained or does it reflect a low usage point? If it is accurate, is a long-term strategy possible?
There is a limit technically on what the grid can take. The overall target is 40% from renewables, meaning wind in the main, by 2020. I am unsure as to the proportion in the case of the ESB alone, but the extent of reliance on renewables will gradually grow between now and 2020.
Is it not a fact that, at one point-----
I am sorry, but we have gone way over time on this question. I must move on.
-----40% of energy usage was-----
From renewables in terms of generation.
I would be reluctant to agree with that statement without checking it, but I will check it and communicate with the Deputy.
I thank the Minister.
Off the top of my head, most of the power generation stations would not seem to bear out that statement.
