The Present
We answer the key questions on energy cost, supply and infrastructure in Ireland today.
Import dependence
How dependent on imports are we?
Ireland is heavily dependent on imports for our energy needs. About 88% of our energy came from imported sources in 2015, up from 85% in 2014 and compared to an EU average of 50%. Ireland has only small proven deposits of fossil fuels, making us dependent on imports. Renewables, while growing, still make up only a small proportion of our energy mix but will contribute to a lower import dependence in the future. Our energy imports comprise oil (58%), gas (29%) and coal (12%). With the Corrib gas field coming on stream in late 2015, our dependence on imported gas has decreased, however we are likely to remain dependent on fuel imports for the foreseeable future. Sectors such as transport and home heating are the most heavily reliant on imports. Power generation takes 75% of its fuel needs from imports.
Primary Energy Requirement in Ireland by Fuel Type, 2005-2015
- Coal
- Peat
- Oil
- Gas
- Renewables
- Waste
- Electricity imports
How much oil do we use in Ireland? Do we have any oil of our own?
Ireland has the fourth highest oil dependency in the European Union. Since 1990 about half of the energy we use in Ireland has been supplied by oil (48% in 2015) and most of that was for transport (72% in 2015). Oil is also used to heat homes and 700,000 of the 1.7 million homes in Ireland rely on oil for heating.
Ireland is wholly dependent on imported oil, making up 77% of our total energy import bill in 2013. Being so dependent on imports, Ireland is vulnerable to supply shocks and price volatility. Government policy as implemented by the National Oil Reserves Agency (NORA) is to maintain strategic stocks of petroleum products for controlled release in a crisis. Most of Ireland’s oil imports are in the form of oil products like petrol or diesel for our transport needs, with the rest imported in crude form and processed at Ireland’s refinery in Whitegate, County Cork. While oil has been discovered at the Barryroe oil field off the coast of Cork, it has yet to be commercially produced.
Progress towards targets for renewable heat (12%) and transport (10%) in 2020 will reduce dependency on imported oil and enhance energy security in Ireland.
Where does our oil supply come from? How is it imported or moved around the country?
Ireland imports all of the oil that it uses. We import both crude, unrefined oil and finished petroleum products. The majority of our oil arrives already refined (petrol, diesel, home heating oil, aviation fuel), mainly from the United Kingdom. Our crude oil imports, accounting for about 53,000 barrels per day, come from Norway and the UK, with some North and Central African sources. Our one refinery at Whitegate in Cork provided 25-30% of our oil requirements in 2015.
Within Ireland, we have sea-port terminals around the coast where we can import oil products by ship. From there, oil products are distributed directly by road tanker or through depots around the country.
Where does our gas supply come from?
Until 2014, most of our gas supply (96%) was imported from outside Ireland, via a system of pipelines connecting us to Scotland. These pipelines are part of a network of gas pipelines that criss-cross Europe and also connect the continent with major gas producers outside the EU such as Russia, Norway and Algeria. Some gas is also provided as liquefied natural gas (LNG) that can be transported in bulk without pipelines as in by ship from Qatar. With the addition of the Corrib gas supply, much of the imported supply was displaced and Corrib will meet up to 56% of our gas needs at its peak over the next few years.
When will gas from Irish sources run out?
The Kinsale gas field supplied all of Ireland’s gas requirements up to 1994. Since then, we have become almost completely dependent on imported sources. The Corrib gas field will provide up to 50-60% of Ireland’s annual needs for the first few of the next 10 years. However, it is expected to be depleted by 2025 and there have been no new finds in Irish territories. A low international price of oil discourages exploration in Irish waters, reducing the chances of any new gas discoveries in the near future.
Where does our coal come from?
We used 1.3 million tonnes of coal in 2014, with 78% of this coming from Colombia.
Approximately 74% of this was used for power plant generation in Moneypoint, and the rest was used in residential heating, industry, the services sector and for combined heat and power units in industry. Coal for home heating is largely imported from Poland. In 2014, this amounted to 104,000 tonnes. We also imported 39,000 tonnes of mainly smokeless coal from the UK.
How do we make sure that we always have enough imported fuels to generate our electricity?
Ireland employs a variety of energy sources for our electricity production, including gas, coal, peat, oil and renewables such as wind and biomass. Gas makes up almost half of our electricity generation at the moment. This diversity of fuel mix means that we are not overly dependent on any one source. We have back-up sources in some cases, where plants can be switched from one fuel to another. In addition, we hold stocks of coal, gas and oil in reserve in the event of shortages.
Type Number of days storage of secondary fuel stocks Gas and CHP (>10 MW) High merit 5 Low merit 3 CHP 1 Coal (Moneypoint) and oil High merit 5 Low merit 3 Renewables and peat No requirement Kinsale Gas Storage Facility Storage Facility 50* National Oil Reserves Agency (NORA) Various Storage Facilities 90 High merit - operating hours > 2630 per annum; Low merit - operating hours < 2630 per annum; *50 days for 48% of protected customers, equivalent to approximately 5% of Ireland’s annual gas demand. Plans to cease gas storage operations in Kinsale from 2016 How will Brexit affect Ireland’s energy sector?
The immediate effects of the Brexit will depend on factors that are for the time being unknown – what sort of Brexit? Whether hard or soft? And most particularly the resulting economic climate and its impact on energy demand here and in the UK. Uncertainty is currently perceived as the greatest risk and investment impacts could affect electricity and gas prices and supplies in the medium term.
We in Ireland import about half of our natural gas and three quarters of our oil products via the UK. Energy is transmitted between the two islands via three gas and two electricity subsea interconnectors. A new North-South electricity interconnector is under development to strengthen the links between Ireland and Northern Ireland’s electricity systems and the Single Electricity Market (SEM), in operation on the island since 2007.
Integration of Ireland and the UK’s gas and electricity markets has promoted investment, reduced prices through greater competition, and increased energy security by improving access to energy supplies.
As the EU plans for greater integration of its energy markets, it is unclear yet what EU regulations will be ultimately subsumed into UK legislation following Brexit. Depending on the deal the UK negotiates, Brexit may or may not affect the UK’s current primary energy and electricity trading arrangements. Over the long term, if deemed to the benefit of consumers in Ireland and the EU, Ireland may look to interconnection with France for direct access to the European Union.
The chart below illustrates the electricity trading patterns between Ireland, Northern Ireland and the UK since 2013 and highlights a recent trend where Ireland has shifted from a net importer of electricity to net exporter influenced by the investment in renewables in Ireland and the phasing out of coal in the UK.
Electricity transfers, imports (+) and exports (-) between Ireland and the UK
- Transfers from NI to Scotland (Moyle)
- Exports to Wales (EWIC)
- Exports to NI (SEM)
- Imports from NI (SEM)
- Imports from Wales (EWIC)
- Transfers from Scotland to NI (Moyle)