Ireland 90% Dependent on Imported Fuels in 2006

Media Information
7th November 2007

Sustainable Energy Ireland Publishes Security of Supply 2007 Report

Despite Ireland’s 90% dependency on imported fuels the country’s exposure to risk associated with supply disruption is currently very favourable compared to the majority of the 27 EU member states. This was one of the findings of the Security of Supply Report published today by Sustainable Energy Ireland (SEI) at the Energy Security and Climate Change Conference in Croke Park. The report is prepared by SEI’s Energy Policy Statistical Support Unit (EPSSU) and is intended to provide a context for informed action and decision-making in the area of Security of Energy Supply.

The report found that Ireland ranked 3rd out of the EU 27 member states in 2005 on a Supply/Demand (S/D) index, recording a score of 75 out of 100 for exposure levels to the risks associated with security of supply. The report however also showed that Ireland could drop to 10th place by 2020 with marks of just 58 out of 100 predicted due to a potential higher import dependency and higher shares of imports from outside EU and Norway. This is due to the depletion of oil and gas resources in the North Sea.

David Taylor, Chief Executive, SEI, said, “Data generated in the production of this report and in particular the additional elements included for the first time this year offers decision makers with responsibility for Ireland’s energy policy valuable insights into the complex challenges that Ireland faces in the area of security of supply. Ireland’s ranking on the supply/demand index is encouraging. However demand and fuel prices continue to rise which coupled with Ireland’s import dependency and the possible future need to import more gas from less secure sources emphasises the criticality of increasing renewable energy supplies and carrying forward the National Energy Efficiency Plan to help mitigate growing security of supply problems. ” 

Findings from the report also show that the cost of oil to industry in Ireland increased, in real terms, by 45% between 2000 and the second quarter of 2007.  The report highlights the impact of cost, in particular the risk associated with sudden energy price hikes, as a defining factor along with the origin of energy supplies on Ireland’s security of supply ranking. 

This year’s report also contains new analysis which for the first time examines factors such as the value of lost load*, the risk factors associated with power sector investments and a more detailed recalculation of the supply/demand index.  This additional analytical work is intended to inform a more comprehensive level of intelligence into Ireland’s security of supply.

The National Development Plan published in January 2007 placed security of energy supply at the core of the €8.5 billion investment in energy over the period 2007 to 2013. The plan allocates funds for direct investment and or research in electricity interconnection, gas storage, renewable energy and energy efficiency with the intention of reducing our dependence on imported fossil fuels. More specific details are contained in the White Paper and the Programme for Government.

*Value of Lost Load is the measurement of the average willingness of electricity consumers to pay to avoid an additional period without power.

Editors Notes:

About SEI
Sustainable Energy Ireland (SEI) is the statutory authority charged with promoting and assisting the development of sustainable energy. SEI is funded by the Irish Government under the National Development Plan, with programmes part-financed by the European Union.

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