EirGrid plc Annual Report 2011

EirGrid plc Annual Report & Accounts 2011
To develop greater mutual understanding of our
respective businesses, we conducted a series of six
Power System Seminars to explain the day-to-day
running of our business, and our staff engaged in
increased numbers of stakeholder and customer
meetings and visits, to gain a better understanding of
our customers’ businesses. A key event for dialogue
with our customers and stakeholders is our Annual
Customer Conference. In 2011 the conference took
place in Dundalk, with the theme ‘Delivering the
Power System of Tomorrow’ and was addressed by
the Minister for Communications, Energy and Natural
Resources, Pat Rabbitte TD.
Developing Infrastucture
A significant challenge in both Ireland and Northern
Ireland is to ensure that cost-effective transmission
infrastructure is put in place, to provide a platform for
economic growth and to provide a path to market for
indigenous and sustainable renewable energy.
Grid25 is the programme for the development of the
transmission system in Ireland, to meet future demands
in the period to 2025 and beyond. Grid25 includes
projects in construction, projects in public planning,
and projects still under investigation and optimisation.
The programme includes in the region of 800km of new
transmission circuits, and the upgrade of over 2,000km
of the existing transmission system.
During 2011, approximately 80km of new circuits
were completed, over 300km of existing circuits
were upgraded and 160km of new circuits were at an
advanced construction stage and are expected to be
complete in 2012. In addition there were a number
of major new station and circuit projects completed
during 2011 including significant transmission works
in counties Wexford, Kildare and Kerry. Of major
significance to the south west of the country was the
completion of the Cork Harbour area development,
representing an investment of over €150m in the
south west.
New High Temperature Low Sag (HTLS) conductor
technology was used for the first time on the Irish
network in 2011, resulting in the ability to increase
the rating of an existing circuit by 50% or more.
The identification and use of this technology, together
with the re-optimisation of the Grid25 programme,
has enabled us to reduce the estimated cost of the
programme from €4 billion to €3.2 billion – a 20%
saving. This major investment will provide substantial
increased capacity to the local areas and position them
for the development of new electricity demands or
generation.
The East West Interconnector is a €601m EirGrid project
which is co-financed by the European Union to provide
a submarine electricity link between the Irish and Great
Britain power systems. Work progressed to schedule
across all parts of the project in 2011 and it remains on
schedule for completion, within budget, by September
2012.
Renewable Energy
The development of indigenous renewable energy
resources is a cornerstone of energy policy at national,
regional and European levels, in response to the
challenges of climate change, economic renewal and
volatility in fossil fuel markets. There are now more than
2,200 megawatts (MW) of renewable energy capacity
connected to the power system in Ireland and Northern
Ireland. In 2011, renewable energy accounted for about
17% of total customer demand across the island.
The target in both jurisdictions is of course to reach
40% by 2020.
The DS3 Smart Grid programme put in place by EirGrid
and SONI builds on the world-leading studies and
analysis completed on the operation of the power
system with very high levels of wind, and sets out
definitive actions and milestones to address the
challenges identified.
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