Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

The Government approved and published the Energy Security in Ireland to 2030 report last November, which concludes that Ireland’s future energy will be secure by moving from a fossil-fuel based energy system to an electricity-led system that maximises our renewable energy demand flexibility and is integrated into Europe’s energy systems. Ireland needs to enhance its resilience in the event of a disruption to the country’s natural gas supplies.

The energy security review determines that a disruption to Ireland’s supplies of gas is considered to be an unlikely but high-impact event. Without implementing new additional resilience measures, a significant disruption would lead to unacceptably high economic costs with potentially catastrophic impacts for society, particularly our most vulnerable. Ireland’s energy security will be significantly improved and risks greatly reduced through the implementation of a strategic gas emergency reserve on a transitional basis for use in the event of a disruption to gas supplies.

The Government’s National Risk Assessment: Overview of Strategic Risks 2023 report states that the lack of diversity of supply sources and storage is a risk for security of supply. Risks relating to secure and sustainable energy supplies have been heightened and intensified by the war in Ukraine. Recent attacks on the Nordstream and Baltic interconnectors are examples of the heightened risks presented to critical energy infrastructure.

The Department, in consultation with Gas Networks Ireland, the transmission system operator, is completing a detailed examination of the optimal approach to deliver the emergency gas reserve, which will include consideration of a timeline for construction and climate objectives among other factors. The proposal is being developed in accordance with specific criteria requirements, including a proposal that can be implemented quickly and decommissioned as it is going to be temporary, a proposal that does not inadvertently increase gas demand by increasing the supply available on the market, a cost-effective proposal at the appropriate scale that provides sufficient resilience if a disruption to gas supply occurs and a proposal that is compatible with the Climate Action and Low Carbon Development Acts 2015 to 2021.

Gas will continue to play a key role to support the secure transition to an energy system based on electrification and greatly increased renewables penetration. Reducing gas demand and increasing renewable gas production will reduce the impact of Ireland’s risk but the risks themselves will remain for at least a decade. The impact of any significant unplanned reduction in the country’s gas supplies would have severe economic and social impacts.

The strategic gas emergency reserve will be supported by policies outlining its terms of use to ensure the reserve operates to mitigate the risk of a gas supply disruption. An end-of-life policy will also be developed to ensure that once the risk is no longer a viable concern for Ireland’s energy security, the reserve will no longer be required.

Gas demand is expected to drop significantly through the course of the decade from 2030 and production of renewable gases is set to increase along with the introduction of renewable gas-compatible storage. This would enable security of supply benefits to be delivered without committing to a long-term dependence on natural gas.

A State-led approach is consistent with the climate Act and broader Government climate and energy policy avoiding the risk of fossil fuel lock-in or stranded fossil fuel assets. The optimal approach will be determined by the Government's continued commitment to the three policy objectives of sustainability, affordability and security. All opportunities to accelerate the potential implementation of this project will be explored on the basis of its strategic importance. I expect to return to the Government for a final decision on this later this year. I thank Senator Boylan for raising this important matter and I look forward to hearing the views of the Seanad.