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Posted 2 years ago | 2 minute read
Ryan notes challenges with energy security and prices
The war in Ukraine is having a major impact on gas market prices and, in turn, the impact on both gas and electricity bills over the coming winter and beyond, Ireland’s Minister for the Environment, Climate and Communications, Minister for Transport Eamon Ryan has said.
Speaking at a Joint Committee on Environment and Climate Action on 30 August, Ryan noted that gas supplies from Russia to Europe have been severely reduced over the last year and continue to be a cause for concern for Europe’s energy security. Although Ryan noted that the supply of gas to Ireland has not, to date, been reduced or interrupted as a result of the war in Ukraine. This has resulted in natural gas prices that are approximately ten times the levels seen just two years ago.
Separately he noted, there are challenges to the security of electricity supplies in Ireland. Concerns over such risks had arisen largely due to the non-delivery of previously contracted capacity, increasing electricity demand and the increasing unreliability of some existing plants. The tight margins are evidenced through an increase in the level of System Alerts on the electricity system.
According to Ryan, as stated in the Climate Action Plan 2021, the level of dispatchable electricity generation capacity needs to increase significantly over the coming years – to enable Ireland to reliably meet the expected demand for electricity. He noted that the CRU is managing a programme of work to address this challenge and that, in June, the government approved legislation and capital funding to support EirGrid’s role in expediting the delivery of temporary generation capacity.
In respect of the longer-term outlook for energy security, Ryan noted that a review is being carried out to examine the energy security of Ireland’s gas and electricity systems out to the period to 2030, in the context of reaching net-zero emissions no later than 2050. A consultation on this is expected to launch in the coming weeks.
Navigating the energy crisis
Energy-intensive industries across the globe are experiencing one of their most difficult periods in recent memory, facing a host of overlapping challenges that impact their cost of operation and competitiveness for the future:
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