ELECTRICITY GENERATION availability will remain "tight" this winter, EirGrid warned yesterday, as it said major upgrades to Ireland's electricity grid were needed to meet Government renewable energy targets.
EirGrid chief executive Dermot Byrne said ongoing poor availability performance by generators was a "disappointment" in 2007, a year in which significant achievements had been made overall, according to its annual report.
Electricity capacity will be closer to peak demand this winter because no new generators are due to come on to the grid until 2009. However, Mr Byrne said capacity was still "satisfactory" and the poor availability averages of the generation portfolio would not result in power shortages.
Two new large generators in the Cork area are expected to add to generation capacity at the end of 2009, while interest from developers in other generator sites "augurs well" for security of supply, Mr Byrne said.
The EirGrid chief executive welcomed the publication last week of an independent study which found that underground cables were not economically feasible and were "severely limited" in terms of their ability to add to security of supply.
EirGrid chairwoman Bernie Gray said good progress was made in 2007, a year in which the all-island single electricity market came into being. But she added that more must be done to facilitate the targets laid down in the Government's energy White Paper. These targets include a commitment to source 33 per cent of electricity from renewable sources by 2020.
"As we face more difficult economic conditions in 2008, it is critically important that we maintain this momentum," Ms Gray said.
EirGrid's annual report for 2007, its first full year as the operator of Ireland's transmission system, confirms that demand for electricity increased by 2.3 per cent last year and peaked on December 18th, when 4,906 megawatts of electricity was exported from power stations at 5.45pm.
Despite the low generation availability, EirGrid said reliability standards were maintained in 2007 and there were no power cuts at any point due to shortages in generation capacity.
The company's revenue increased from €140 million in 2006 to €290 million last year, while operating profit in 2007 was €8.8 million.
EirGrid is due to publish its grid development strategy for the period up to 2025 later this year.
Mr Byrne said EirGrid had a responsibility to ensure the lights stayed on, adding that nuclear and clean-coal technology options should be examined to ensure diversity in fuel supply.
"If we look beyond 2025, peat will be used up and we will be left with gas and renewables," he said.
"I believe there is a third leg of the stool. We need a debate about what the third leg of the stool will be."
