This is a pivotal conference in a pivotal year for EirGrid and for the Irish energy sector generally.
Last July we marked the full operational establishment of EirGrid as the national independent Electricity Transmission Operator.
The arrival of EirGrid as a fully-fledged legally independent entity was a critical milestone on the road to opening up the Irish electricity market.
It took longer than planned. There were many challenges along the way. The experience underlines the fact that the process of change is inevitably difficult, sometimes fraught and often frustrating.
But change is always worth the effort and commitment when it brings us into a new landscape. And we are now creating a new landscape not just for EirGrid, but for the electricity sector itself.
EirGrid is now positioned to move ahead as a new organisation in its own right and with its own clear corporate identity. There is a challenging strategic agenda for the company, starting now and over the next decade.
As Transmission System Operator and Market Operator of the whole sale trading system EirGrid’s roles and responsibilities are at the heart of the electricity sector.
EirGrid is charged with delivery of services on an equal and independent basis to all users of the electricity system. Those services are fundamental to all electricity customers throughout the country – large industry, small businesses, the public sector, the farming sector and each and every household.
By meeting the needs of generators, suppliers and high voltage customers, EirGrid delivers for the economy for citizens and for consumers. It is a daunting mandate.
I welcome this Customer Conference as evidence of EirGrid’s commitment to delivering quality services to all electricity customers.
Equity, transparency, efficiency, value for money and independence must be the hallmarks of the Company’s service delivery. That is what the Government and I expect. I have no doubt that the feedback and debate here over the next two days will make a key contribution to EirGrid’s own change agenda and corporate planning.
The Conference is also a timely opportunity for EirGrid, its stakeholders and customers to review the wider energy picture and to assess the strategic challenges and opportunities for EirGrid in that overall context.
The overall context is one of change and challenge for energy policies worldwide, in the European Union and here at home. We will all be measured collectively and individually, by our ability to respond to, and indeed predict, those changes and by our delivery of the strategies and actions, which will re-shape the energy future. By we I mean policy makers, regulators, State owned utilities, private sector, energy players and business and consumer interests alike.
I have made the point repeatedly that energy policy is a collective Government enterprise. I am working with Ministerial colleagues to ensure that collective approach. The Green Paper on Energy Policy reinforces this message. But I would also make the point that the national energy agenda is a collective enterprise for all concerned with a role to be played by each and every player. This is not about cosy consensus or complacent collusion. It’s about constructive engagement, robust debate but ultimately with similar objectives – to do what’s best for the Irish energy sector and the consumer.
More integration and interconnection with other energy markets is crucial for security of supply It is also critical for the renewable energy sector.
Work is already underway by EirGrid and SONI on the building of the new second North South Interconnector. We have also announced the decision to develop a new electricity interconnector with Britain no later than 2012.
The Government has also made clear that the East West Interconnector as national strategic infrastructure will remain in public ownership. And we will vest that ownership in EirGrid with a mandate to operate and develop the asset in a fully transparent, independent and fair way.
EirGrid has a major job to do, starting now, to deliver on the technical aspects of the interconnector project – in parallel with CER’s work to launch the competitive “design and build” process.
Enhanced Interconnection on the island and East West will be the physical manifestation of the all-island and regional electricity markets.
The All-Island Energy Market project is the logical first step along the way to regional markets and is a flagship project in EU terms.
The Single Electricity Market next year will promote an efficient secure and competitive electricity market on the island of Ireland.
Again, EirGrid as System Operator and Market Operator is playing a central role with SONI, The two Regulators and the Departments in delivering the All-Island Market. The complexity and technical scale of this project is striking. EirGrid has mobilised a team with world-class expertise and skills, which is working round the clock to make it happen.
The industry players as market participants have also been planning and investing in the creation of the Single Electricity Market. I congratulate everyone on their commitment.
The Green Paper proposes an ambitious target of 30 per cent of electricity generated from renewable energy by 2020. I believe that this is a challenging but realistic target – although obviously the debate will continue for some time.
There are significant technical and competitive cost challenges to be met in meeting such a target. I am optimistic that we can overcome the challenges.
Firstly by providing the right infrastructure in terms interconnector and grid and other transmission needs. Secondly by creating the right market trading conditions for renewable generation.
And thirdly by systematically investing in research and development targeted at specific renewable challenges and opportunities for the island of Ireland. – Including the grid.
Delivery of ambitious renewable energy targets by 2020 must be a central part of EirGrid’s mission across the range of its responsibilities. Matching generation with demand, providing services to suppliers ensuring transmission and connection services to generators and as Market Operators. I welcome EirGrid’s commitment to work with all players to deliver the infrastructural, technical and market conditions in support of the renewable agenda.
It is increasingly obvious, worldwide as well as here in Ireland that energy efficiency and demand management strategies can pay huge dividends in terms of emissions reduction, security of supply and competitiveness. The Green Paper accords high priority to Energy Efficiency as a short to medium term strategic goal.
The National Energy Efficiency Campaign is a multi faceted campaign. In addition to encouraging behavioural change we will set higher standards, incentivise and regulate for change and target individual sectors. I welcome the enthusiastic involvement by EirGrid and others in the Power of One Campaign.
Demand management and consumption reduction are critical to ensuring balance between electricity demand and capacity. We are at that time of year again when Winter Peak Demand Reduction must be encouraged to the benefit of consumers as well as of the power system.
Generation adequacy is an issue of immediate and medium term. Concern and priority must be given to ensuring that sufficient generation is available to meet demand at any point in time. New generation capacity will be needed which will ensure capacity and competition in the generation sector.
To that end, the recently launched Green Paper, proposes the creation of a ‘land bank’ of suitable sites, to offer a predictable pattern of access to suitable generation sites in Ireland for new entrants to this market. This would remove a significant barrier to new entry and has been used successfully elsewhere to encourage new entry.
What the electricity market needs is more competition, more innovation and more choice for consumers.
I have made it clear that improvement in plant availability must be a key priority for EirGrid, CER and the electricity industry.
The policy objective is to ensure that those concerned are empowered to manage and monitor the adequacy of the generation base and to encourage new entry as and when required.
Transparency and timeliness of data are litmus tests for quality customer service in a competitive electricity market arena. Full transparency and reliable speedy flow of information, with due regard for commercial sensitivity, must be the goal.
In the final analysis we are all customers of EirGrid. As end consumers of electricity we are all dependent on EirGrid fulfilling its crucial national role in keeping power flowing and available at all times.
I have every confidence in EirGrid as the new State Company on the block to rise to the many challenges over the next decade and beyond. Ireland’s security of supply, sustainability and competitiveness demands it.
ENDS