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The Future Development of the Irish Gas Market Maria O’Dwyer, Head of Asset Programmes, Bord Gáis Networks Presentation to: Oil & Gas Seminar Date: 15.10.2013
The Future Development of the
Irish Gas Market
Maria O’Dwyer, Head of Asset Programmes, Bord Gáis Networks
Presentation to:
Oil & Gas Seminar
Date:
15.10.2013
Do you recognise the
benefits of Gas today?
Do you recognise the role
of Gas today?
What role do you see Gas
having in Ireland’s future?
Ireland Today
Gas is not given fair
consideration
Risk
- Ireland will miss out and
make the wrong decisions
Why?
1. Benefits of Gas are neither widely understood nor appreciated
2. All markets face uncertainty right now
3. Uncertainty about how to meet the Climate Challenge
Benefits of Gas are
neither widely understood nor appreciated
Cleanest fossil fuel
Versatile, convenient
Reliable
Competitive, efficient, quiet
Natural Gas is …
New indigenous supplies
Gas is often dismissed without recognising benefits it can and does bring
Flexible, ideal partner for intermittent renewables
Magnet for investment
Opportunities to mix with other gases
Multiple efficient routes to market
Inc
rea
sin
g →
Reliance on gas for reliability and flexibility
Variation in power generation gas demand
Pressure on gas system operator
De
cre
as
ing ←
Average gas demand
Capacity bookings
Stability – balance is wrong In
cre
as
ing
→
Tariff Uncertainty for gas
Impact on electricity tariff
Difficult to make business case
Increasing level of Wind
Increasing Impact on
Gas market
Increasing Uncertainty
All markets face uncertainty right now
Short term investment decisions are limiting the expansion of gas
in the domestic and industrial/commercial sectors
Roadblock to
Stability
Spiralling effect
impacts on
overall economic
competitiveness
for all
Changing Economic Climate
Connection Policy
Funding Issues
Payback Forces less
efficient option
Increasing level of Wind
Increasing Impact on
Gas market
Increasing Uncertainty
All markets face uncertainty right now
Short term investment decisions are limiting the expansion of gas
in the domestic and industrial/commercial sectors
Inc
rea
sin
g →
Reliance on gas for reliability and flexibility
Variation in power generation gas demand
Pressure on gas system operator
De
cre
as
ing ←
Average gas demand
Capacity bookings
Stability – balance is wrong In
cre
as
ing
→
Tariff Uncertainty for gas
Impact on electricity tariff
Difficult to make business case
Roadblock to
Stability
Spiralling effect
impacts on
overall economic
competitiveness
for all
Changing Economic Climate
Connection Policy
Funding Issues
Payback Forces less
efficient option
Ireland’s Climate Challenge
- lacking tangible solutions
Uncertainty regarding the deliverability of an overall solution to
meet Ireland’s energy needs and carbon targets
Ireland’s thermal generation sector is in a good place
Is there too much focus on electricity generation?
Wind - not a panacea
Irish energy mix is still dominated by oil
More efficient, practical and easier ways to further address the
climate challenge – develop the role Gas plays
Gas is the no regrets option
Reflects weighting in Bord Gais Energy Index Sept’2013
Golden Age of Gas
Gas is key to an efficient sustainable energy
future for Ireland
Past
Fear/perception - supplies, security of supply
Now
Abundant gas, diversification of supplies
Increased interconnection in Europe, LNG
Closer to home – Promising future for Gas
Supplies
Corrib field
Gas Interconnectors to UK
Diversity of supplies
NBP - most liquid gas market
Security of Supply - EC 994/2010
Develop the Role of Gas Today
Abundant Gas
Gas storage
Sustainable Transport
CHP, affordable & flexible for heat & power
Gas thermal generation - low C02 emissions,
reliable & flexible
Urban –gas fuel
of choice Growing herd, potential for
increased emissions
?
Adopt latest technology,
switch to gas
Tomorrow’s Gas Market
Abundant Gas
Gas storage
Excess Wind Power to Hydrogen
Sustainable Transport
Biogas injections, 100% renewable
CHP, affordable & flexible for heat & power
Gas thermal generation - low C02 emissions,
reliable & flexible
Partner with renewables, condensing
boiler, solar & heat pumps
Urban –gas fuel
of choice
Rural – electrification
of heat
Golden Age of Gas – what if we take gas seriously?
Enhanced quality of living
Considerable cost savings
Tangible solutions
… and we will support the 3 EU Energy Pillars
Enhanced Quality of Living
Clean
Convenient
Quiet
Efficient
Cheap
Considerable cost savings
Minimal Cost
Utilise existing modern and robust gas network
Offset some investment and support mechanisms
in electricity
Efficient use of energy
>90% efficiency achievable with latest technology
Cheaper source of electricity for base loads
Enhance competitiveness in transport
Opens the door for renewables
Wider national market without significant investment
Tangible solutions – the technology already exists
Proven Technology
Domestic & heating
CHP - industrial processing, hotels,
nursing homes, schools
Compressed Natural Gas (CNG)
Emerging Technology
Waste to biogas
Gasum Waste Water project
Store excess wind as hydrogen
Eon project in eastern Germany
Dual Fuel Cars
Ireland needs to be more proactive in embracing these technologies
What needs to be done?
Increase
Awareness
Gas should
underpin
Ireland’s Energy
Strategy
Promote
development of
the gas market
Awareness
Communicate the
Benefits of Gas
Diversify Research in
Energy Policy
Underline the role gas
plays in a sustainable
energy mix
Manage perception of Gas
amongst policymakers
Formulate a clear vision for
the future of Gas
Secure a policy framework to
deliver this vision
Underpin Ireland’s
Energy Strategy
with Gas
Put Gas Central
Stage
Promote development of the gas market
Marketing
Task and resource the marketing of gas
Retail market is not performing this role
Invest and role out proven solutions
Urban gas heating
CHP
CNG
Biogas
... Finally
Thank you for listening
Gas isn’t the old reliable
but the new necessity
Let’s start taking gas
seriously
