Gas Networks Ireland Meeting Ireland s targets under the 2020 Climate & Energy Package

Transcription

1 Gas Networks Ireland Meeting Ireland s targets under the 2020 Climate & Energy Package Presentation to the Joint Committee on Communications, Climate Action and Environment February 2018

2 Natural Gas and Ireland s Economy Natural Gas plays a critical role in Ireland s economy. Delivering 30% of Ireland s primary energy demand and 16% of total final energy consumption. 52% of Ireland s Electricity is generated from Natural Gas. Ireland s Natural Gas Network supplies energy to more than 688,000 homes and businesses. 60% of Ireland s Natural Gas supply is currently indigenous from the Corrib gas field. There is significant potential for further diversity of supply through the development of Renewable Gas and LNG. 2

3 The Gas Network is Essential to Meet Climate Targets Ireland has committed to reducing CO2 emissions By further utilising the current gas network Ireland could remove over 17.5 MT of CO2 from its emissions by 2050 All this can be achieved using the gas network: At lowest cost to consumers & exchequer With the least disruption to the end-users, while utilising existing assets While enhancing Ireland s security of supply 10 While providing significant jobs to rural Ireland target [80%] 2050 target [95%] 3 MT CO2 Agri Energy

4 Gas Fired Power Generation is Key for Ireland Dependency on Natural Gas for electricity generation decreased from 2012 to 2015 as more Renewables were brought on. Dependency increased again in 2016 as wind output dropped and the East West Interconnector (EWIC) was on a prolonged outage. It is clear that natural gas fired power generation is key to the Irish electricity system. Gas Wind Coal Peat Other Interconnectors 9% 19% 15% 8% 8% 9% 9% 10% 16% 15% 18% 17% 18% 24% 9% 17% 22% 51% 46% 45% 43% 52%

5 Natural Gas Supports Renewables Across the month (March 2016), wind powered generation contributed between 0.6% and 73.6% to the power generation fuel mix. Gas fired generation contributed between 14.3% and 68.8% over the same 5 period i.e. gas fired generation provided the flexibility and stability to match the high level of intermittency of wind.

6 Switching to Natural Gas and Renewable Gas GNI is converting an average of 3,500 domestic oil boilers to Natural Gas Boilers per year, reducing CO 2 emissions by an average of 22%. GNI is converting an average of 800GWh per year of industrial heat load from Coal, Oil and Heavy Fuel Oil to Natural Gas reducing CO 2 emissions by an Average of 40% - In 2017 this resulted in a reduction of 65,600t of CO 2. All customers using Natural Gas will be able to switch to Renewable Gas in the future resulting in additional CO 2 reduction. 6 Tonnes of CO 2 400, , , , , , ,000 50,000 - Cumulative reduction in CO 2 by Switching to Natural Gas Domestic Gas Connections Commercial Gas Connections

7 Potential for CNG in Ireland Provide an alternative refuelling network across Ireland. Ability to refuel the national fleet of HGV s and Buses with Natural Gas or Renewable Gas. Meet the requirements of Irelands National Framework for Alternative Fuels Infrastructure Deliver initial CO 2 reduction of up to 25% in commercial transport Deliver fuel cost reduction of up to 35% over Diesel. Facilitate the introduction of 100% carbon neutral Renewable Gas to transport. 7

8 CNG 10 Year Development Deliver a minimum network of 70 CNG stations across Ireland. Capacity for up to 5,000 HGV s On Natural Gas this equates to removing 47,000 diesel cars On Renewable Gas this equates to removing 273,000 diesel cars Phased transition from Natural Gas to Renewable Gas. 14 stations by 2020 CNG Stations

9 Project Causeway A co-funded project under the EU Connecting Europe facility. Project will run Aim of the project is to deliver; Assessment of the impacts of CNG on the Gas Network. A network of 14 stations along the T-TEN transport routes, A renewable Gas injection facility Gas Vehicle Support Scheme Vehicles will have a range of up to 600km and will refuel in 4-5 mins. First station has been constructed in Dublin Port. Second station on M7 Motorway in planning. Pipeline of 30 stations. 9

10 Potential for Renewable Gas Reduce the carbon footprint of the gas network through the development of a Renewable Gas industry. A 100% carbon neutral transport fuel through CNG refuelling stations. A central element to achieving emission reduction targets in heat and power. A key tool to attract FDI Replace 80% Natural Gas on the network. Reduce Irelands dependency on import fuel by approximately 300 million per annum by

11 Renewable Gas 10 year Development A network of centralised Renewable Gas injection facilities Minimum capacity of 11TWh (20% of total gas demand) Renewable Gas Certification Scheme allowing national and international trading of Renewable Gas A compressed gas transport network to facilitate farm-gate collection of Renewable Gas Partnering with the Agri and Waste Management Sectors to develop Renewable Gas production facilities. Transition CNG network to Renewable Gas 11

12 Renewable Gas and CNG Projects Co-funded by the Connecting Europe Facility and Gas Networks Ireland. Renewable Gas Injection; Working with biogas producer Green Generation Ltd. Project will be completed in Regulatory & functional design blueprint for future projects. Capacity to inject up to 90GWh/annum This is equivalent to the energy used by approximately 200 Heavy Goods Vehicles Saving 25,000 t CO 2 emissions First Private CNG Station Clean Ireland Recycling Shannon Fleet of 25 trucks transitioning to CNG First CNG trucks in regular operating in 2017 CO 2 savings of 500 Tons per annum on Natural Gas and 2,900 Tons on Renewable Gas First Public CNG Station Constructed in Dublin Port Dedicated truck/bus refuelling depot Capacity to refuel up to 70 trucks/buses per day 12 Commercial operation in March 2018.

13 Renewable Gas Certification Scheme In development with national and international partners The certification scheme will be in compliance with EU and national regulations Internationally recognised by Carbon Disclosure Protocol / World Resources Institute International standards. Principles and methodology for Greenhouse Gas accounting Independent auditing of individual GHG mitigation values A registry system for Renewable Gas Certificates Operational in Q

14 Carbon Capture & Storage (CCS) What can it do for Ireland? CCS project in Cork Essential for Ireland and globally Least-cost solution EU Funding available Needs strong Government support Removing 1.1 million cars from Irish roads Emissions from 750,000 oil heated homes Emissions from 925,000 dairy cows Over 100,000 full flights between Dublin & Brussels Emission savings from all wind turbines in Ireland 14

15 UCC Least-Cost Model (2015) UCC Least-Cost Model Key Findings - The position in 2050: The bulk of energy use (71%) is non-electrical energy used for transport and heat. Electricity accounts for 29% of end use. This clearly suggests significant electrification but equally that most of the energy system is not electrified. Natural gas has a significant role. Most of the gas usage is in electricity generation in power plants that have carbon capture and storage (CCS) technology. There are constraints on how much electrical energy can be provided by non-synchronous renewable electricity. Renewable energy provides 51% of electricity. Renewable energy accounts for 55% of energy use, comprising indigenous biogas being used in freight transport, solid biomass for heating in industry and liquid biofuels for freight transport. Renewable energy accounts for 63% of thermal energy, dominated by solid biomass but also with biogas for residential heating (via the gas network). 15 Transport energy, with the 2050 car fleet dominated by electric vehicles and liquid biofuels and biogas providing the bulk of the remaining energy needs (i.e. for freight, public transport, etc.).