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CRU chief says Ireland's energy position is 'slightly worse' than last year

Ibec Energy
/ 31st August 2022 /
BP Reporter

The State's energy grid operator, Eirgrid, "can't offer a cast-iron guarantee" there will not be blackouts this winter, while a representative for the Commission for the Regulation of Utilities (CRU), said Ireland's energy position is "slightly worse" than last year.

At an emergency meeting of the Oireachtas Environment Committee yesterday, Eirgrid chief Mark Foley said the challenge has increased due to lower levels of energy production this year.

The committee heard that the State would not be concerned about a shortfall in energy were it not for a failed 2018 deal.

In 2018, a contract with an energy provider to deliver 500 megawatts of generation capacity was completed after an energy auction.

However, the successful provider - which wasn't named at yesterday's meeting -did not have the capacity to deliver on the deal, which has resulted in the current shortfall.

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The conditions surrounding the auction process are being reviewed by consultants EY in light of the failure of the provider to deliver. Mr Foley's comments came in response to criticisms of data centres' impact on the State's energy supply.

He said demand has risen by 9% in the last five years, which he described as "not exceptional". Mr Foley also said that "when the wind blows" there won't be an issue, but the country could be exposed in times of low wind generation.

Rodney Doyle, chief operations officer of the Commission for the Regulation of Utilities (CRU), described the overall energy position as "slightly worse" than last year.

He said: "Last winter we had a similar situation and no blackouts, no power loss at all. This winter we see this heightened increase because the rest of Europe is tight [on energy supply].

Ireland's energy position
At an emergency meeting of the Oireachtas Environment Committee yesterday, Eirgrid chief Mark Foley said the challenge has increased due to lower levels of energy production this year.

"When we don't have wind then we will need trades with Britain - if they can't provide us with those trades [because of their own supply strains], that does increase the risk."

The CRU disputed some comments made by Mr Foley over the role of data centres in the crisis. Chairwoman Aoife MacEvilly said she "respectfully disagrees with some aspects of Mr Foley's opening statement". "We know that growing data centre demand is a challenge" she added.

Meanwhile, Green Party leader Eamon Ryan will travel to Brussels at the end of next week for an energy meeting of EU energy ministers. Mr Ryan said he "will absolutely be there looking for support and decoupling" of gas and electricity prices. He said the current spike in gas prices is unprecedented.

He added that prices have risen much higher and faster than during the oil crisis in the 1970s.

Mr Ryan said a windfall tax on energy companies, which have seen their profits soar during the crisis, is under consideration as part of next month's Budget. Taoiseach Micheál Martin confirmed yesterday that this proposal was discussed at a meeting he convened with Mr Ryan, officials from Tánaiste Leo Varadkar's office, Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath on Tuesday.

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