The future viability of the pan-Ireland single electricity market (SEM) is potentially challenged by the UK’s decision to leave the EU, MPs have warned.
A new report, published on Monday (1 May) by the House of Commons Northern Ireland select committee, says the government should pay particularly close attention to the impact that any changes in its relationship with the EU’s internal energy market have on Ulster.
Northern Ireland’s electricity system is highly integrated with that of the Republic through the SEM. Its dependence on external sources of supply will be exacerbated after 2021 after which it will no longer generate sufficient electricity to meet its own demand, according to the committee.
In order to ensure security of supply after 2021 in Northern Ireland, the cross-party group of peers urges the province’s Planning Appeal Commission to make a decision as soon as possible on a planned new 1500 MW interconnector, which will nearly triple the capacity of cross-border connections.
The report also calls for an upgrade to the Scottish grid to enable better use to be made of the Moyle underwater interconnector, which is currently operating at half capacity due to technical restrictions imposed by the National Grid.
The committee says greater policy clarity is needed to plan for new generating capacity due to be lost at Kilroot and Ballylumford B, two of Northern Ireland’s three main power stations, due to tightening emissions standards. The committee says energy bills, which are already substantially higher than those in the Republic of Ireland, will rise unless the steps it advocates are taken.
In particular, the report says it received evidence that capacity constraints in the west of Northern Ireland had restrained business investment in the area.
The report says in order to improve the economic competitiveness of the province, heavy users of energy should be offered discounts on their electricity.
On publishing the report, Laurence Robertson MP, chair of the Northern Ireland Affairs committee, said: “Establishing a secure electricity supply must be a priority for Stormont and Westminster. The region already faces the highest energy prices in the United Kingdom, causing significant harm to the competitiveness of businesses based here and creating unacceptable levels of fuel poverty. This must not be allowed to get any worse.
“Difficult decisions about where future electricity supply will come from will need to be taken quickly if the current situation is not to get worse. The North/South Interconnector must pass its final procedural hurdles quickly to enable construction to begin and be completed by 2021. We also need to know how current electricity production in Northern Ireland will be maintained or improved. Will there be investment to prolong the lifespan of Kilroot and Ballyrumford B, or will new cleaner technologies be encouraged?”