A landmark report on Ireland’s energy security suggests Ireland should develop substantial gas storage facilities to reduce the risks posed by any future disruptions in supply.
Publicly-owned gas storage on land or a floating liquefied natural gas (LNG) terminal are two options identified by international consultants in the rerport as ways Ireland can shore up its energy security over the next eight years.
The publication of the report on the security of Ireland’s energy supply up to 2030 comes against a backdrop of the crisis caused by Russia’s war in Ukraine, soaring energy bills for households and businesses, and concerns that Ireland could suffer power blackouts this winter.
Coalition leaders will meet tonight [Monday] to further discuss preparations for next week’s budget, with help for businesses facing rising energy costs expected to be a focus of their discussions.
In advance of the meeting Minister for the Environment Eamon Ryan will unveil the Review of the Security of Energy Supply of Ireland’s Electricity and Natural Gas Systems, which was carried out by independent experts Cambridge Economic Policy Associates. It considers potential risks to Ireland’s natural gas and energy supplies, and examines a range of measures to mitigate these risks. These include the need for additional capacity to import energy, the development of energy storage, fuel diversification and bringing renewable gases such as hydrogen on stream.
The review will be the subject of a period of public consultation until the end of October, before recommendations are brought to Government for approval.
Options listed in the document include the development of a State-owned gas storage facility that could be filled from the gas network and used strategically, operating during periods in which there is a material risk of demand disruptions in Ireland. Public comments from Mr Ryan in recent weeks suggest he is supportive of this proposal.
However, the review also sets out other options including the use of floating LNG terminals during times when there is a risk of disruption in supplies to Ireland. The Government has not joined several other European countries in seeking to secure such floating terminals.
The Green Party has major concerns over the use of LNG because some producers use the environmentally damaging fracking process to extract gas. Others in Government – particularly in Fine Gael – believe the use of LNG should not be ruled out. Government policy is that it would be inappropriate to allow for the development of any LNG terminals in Ireland to be permitted or proceeded with ahead of the outcome of the energy security review.
Another option in the review is the acceleration of energy efficiency and diversifying fuels away from gas towards renewable fuels.
Concerns over Ireland’s capacity to generate enough electricity this winter has prompted energy conservation measures for the public sector, such as turning down office thermostats, as well as advice for households to limit use during peak hours between 5pm and 7pm.
Rising bills have seen the prospect of a windfall tax on energy companies’ profits being included in the budget to help fund a multibillion euro cost-of-living package to support struggling households.
The Government is leaning towards further electricity bill credits similar to the €200 rebate earlier this year to help families with their utility bills over an option of capping electricity prices, which is seen as risky to the State’s finances in the event of further price increases.
On Sunday Tánaiste Leo Varadkar outlined measures under consideration for helping businesses, including low-cost loans, and large grants for energy intensive exporters and manufacturers. He also said the possibility of either flat payments or a way of providing a discount from the bills for small and medium businesses is also being explored. “The objective obviously is to make sure that viable but vulnerable businesses do survive, and the jobs of the people that work there are protected,” he told RTÉ Radio.
