All Island Grid Survey launched by Minister
The minister for Energy Eamon Ryan TD recently launched the All Island Grid Study that shows it is feasible to generate 42 per cent of our electricity from renewable sources by 2020, but that this requires €650 million in state funding and a corresponding €9 billion in private investment.
The grid study also shows that 600 kilometres of the transmission network should be reinforced in the Republic to drive renewable generation beyond the current 33 per cent target up to a level of 42 per cent. If this increase is achieved, it would result in a 25 per cent reduction in greenhouse gas emissions and savings in the national bill for imported fossil fuel.
Minister Ryan said up to 21 renewable energy suppliers could play a role in the project, "The business case for this will provide the private financing". Commenting after the launch, ESB Chief Executive, Padraig McManus said that while €9 billion private sector investment required was substantial, there was "great hunger on the part of all kind of funds to get involved in renewable projects, so getting backing from them will not be a huge problem".
"There definitely seems to be an appetite in Ireland for people to develop wind farms," he said. The world of energy is changing rapidly-interconnected markets are consolidating and enlarging, climate change concerns have brought renewables-based sustainable generation centrestage and security of supply is a constant imperative. Meeting international targets for emissions reduction requires considerable resources, but they can be met, the government believes.
"Investment in the electricity industry is large-scale and involves long-term perspectives and planning," the ESB Chief Executive said. "ESB has spent €3.5 billion in the past five years on the network renewal meeting demand growth and improving supply quality.
"ESB will spend about €1 billion a year on continuing Networks enhancement and power generation projects over the next five years. This investment will greatly improve the energy efficiency of our generation portfolio. The investment in networks and greater interconnection will facilitate higher levels of wind generation as well as other renewables. ESB's investment in smart metering will also facilitate the more efficient use of electricity."
The balance lies between ensuring security of supply while optimising renewable energy sources, at a cost that will not cripple the economy. Expressing confidence that Ireland can adopt the correct measures, Padraig McManus said, "I strongly believe the challenges attached to the way we generate and distribute electricity involving climate change, carbon and associated issues, can be met in a way that supports and sustains the economy. The other sectors of the economy must play their part in meeting the targets. The electricity sector alone cannot meet the challenging targets set for Ireland."
ESB began powering the country with electricity in 1927, through a renewable source: 'The Shannon Scheme' at Ardnacrusha, which is still producing 90 megawatts of electricity.
The increases in Ireland's demand for electricity led ESB to increase its portfolio to include fossil fuel generation, but not before it expanded its hydropower projects to harness the Rivers Lee, Liffey and the Erne - all these stations are still operational today.
ESB owns and operates more renewable generation than any other energy supplier in Ireland. ESBI is also Ireland's largest windfarm developer, providing services to all operators in the wind industry.
In meeting the 'green challenge', one of the most effective steps that we can all take, according to the ESB Chief Executive, is that we can improve our energy efficiency. This option is open to all sectors of the economy, not only as a cost reduction measure but also for its positive effect on the environment. ESB's Customer Supply business has provided energy efficiency advice to its customers, saving 360GWh of power in 2006. The advent of smart metering, to be piloted in 25,000 homes nationwide, is an insight into the future of more intelligent electricity management.
As far as the Chief Executive is concerned, energy conservation is one endeavour that ESB intends to continue to strongly promote in the coming years.
