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The Journal
6 days ago
- Business
- The Journal
Russian-owned alumina refinery in Limerick suspended from energy market
MINISTER FOR ENTERPRISE Peter Burke has said that the government is working 'very closely' with a Russian-owned alumina refinery in Co Limerick following its suspension from the energy market. Aughinish Alumina is Europe's largest alumina refinery and employs 450 people on its 222-hectare site, located close to the Shannon-estuary towns of Foynes and Askeaton. It is owned by Russian metals company Rusal. Eirgrid has confirmed that the company has been suspended from the ex-ante energy market - which provides day-ahead and intraday markets for the buying and selling of wholesale electricity by generators, supply companies and traders. 'Aughinish Alumina have not been taken offline and remain connected to the transmission system,' a spokesperson for Eirgrid said. 'EirGrid can confirm that Aughinish Alumina have been suspended from the ex-ante market in line with a decision by ECC (European Commodity Clearing). EirGrid are currently reviewing the implications of this development.' Speaking to reporters today, the Enterprise Minister said the decision was taken in a sovereign court in Italy. Peter Burke said his department, the Department of Energy, Eirgrid and the Commission for Regulation of Utilities (CRU) are engaging with the company to 'try and find a pathway for the company'. 'They're a very significant employer, and one that we are committed to working very closely with,' he said. 'Obviously, there are sanctions that we have to adhere to in relation to the ownership structure, as well as its participation now subject to that case in the energy market.' Asked if jobs were under threat at the plant, Burke said: 'We're working with the company, and that's the key thing. Advertisement Aerial view of Aughinish Alumina refinery on the Shannon, Co Limerick. Alamy Stock Photo Alamy Stock Photo 'We need to ensure that there is a pathway. It's a very significant company. It's a heavily export-oriented company from the Irish market, and obviously supplies a significant amount of power brought into the grid and in terms of its utilisation.' Burke said he understands that the company is still fully operational, but that 'they are in discussion with Eirgrid and the CRU to find a pathway'. While the Aughinish Alumina plant has no direct link to Russia's military invasion of Ukraine, it is owned by Russian metals company Rusal, which was co-founded by Oleg Deripaska. Deripaska, who is still a shareholder in Rusal, is an industrialist who is reported to have had close ties to Russia president Vladimir Putin. In 2018, he was placed on a US sanctions list and the UK government also announced sanctions against the oligarch in 2022 following the Russian invasion of Ukraine. The businessman is well-connected in Russian politics and business, and was pictured earlier this month at the Kremlin in Moscow for a ceremony ahead of World War II commemorations. According to reports, pre-tax losses at Aughinish Alumina in 2023 totalled €108 million, down from losses of €141 million the previous year. Earlier this month, a bomb was discovered attached to a fuel tank that services the refinery . The bomb is believed to have included a battery-timed mechanism so that it could be detonated long after the perpetrators had left the area. It's understood that up to 100 staff at the refinery were unable to leave the plant while a 350-metre security cordon was in place at the scene for several hours. The area where the bomb was found is located close to a publicly accessible nature walking trail. Gardaí investigating the incident are examining many lines of enquiry, including the possibility that the bomb may have been a direct response to Russian missile attacks in Kyiv carried out at the time. In February 2022 Gardaí launched an investigation into criminal damage at the entrance to Aughinish Alumina which was daubed with slogans in red paint, similar in nature to protests at Russian embassies around the world at Russia's invasion of Ukraine. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Independent
11-07-2025
- Business
- Irish Independent
Delay hits €1bn undersea electricity interconnector between Ireland and France
Project that could power 450,000 homes pushed out to at least spring of 2028 The landing point is near Youghal, Co Cork Progress continues at the converter station site in Ballyadam, Co Cork The first electricity interconnector between Ireland and mainland Europe is facing delays that will push back its completion date to at least spring 2028. The €1bn Celtic Interconnector between Cork and France was due to begin operating in early 2027. It would allow Ireland to import power to boost the country's strained electricity supply, serving up to 450,000 households at full capacity if needed. However, Eirgrid and its French partners, Reseau de Transport d'Electricite (RTE), said there has been a delay to the manufacture and installation of the undersea cables. 'Adjustments have been required to the sub-sea marine cable programme, which has resulted in an adapted burial programme, extending the time required,' Eirgrid said. The project has been under construction since 2023 'As a result, the project's commissioning date is now expected for spring 2028, rather than 2027.' It warned that the timeline could be stretched further, saying: 'Adverse weather conditions could impact this date, if marine cable burial cannot be undertaken. 'However, the programme is scheduled for spring and summer to take advantage of more optimal conditions.' The flagship energy project has been in the planning for over a decade and under construction since 2023. It received more than €500m in EU funding, while the rest came from Eirgrid and RTE. The landing point is near Youghal, Co Cork Further unspecified costs will be incurred now because of the delays, but Eirgrid said the EU would be asked to extend its grant aid to help cover them. Significant works on the 575km interconnector have been carried out on land in both countries. The landing point in Ireland is near Youghal, Co Cork, with the high voltage cables running inland to a converter station and substation at Ballyadam and Knockraha between Midleton and Cork city. Works are due to finish there next year, while similar works at the French landing point in Brittany are also well under way. The 500km undersea element of the project is the more complex undertaking, and it is this that has run into difficulties. It is a setback from an energy-security and climate-action perspective Eirgrid said work had otherwise been on schedule and a hold-up was not unexpected for a project of this nature. 'It is not unusual for timelines to evolve on complex cross-border infrastructure projects of this scale, particularly where marine works are involved,' it said. However, it is a setback from an energy- security and climate-action perspective. Ireland has begun importing significant amounts of electricity via two interconnectors in the UK, which has reduced the need to burn gas to generate power domestically and has enabled national greenhouse gas emissions to fall. Increased interconnection is also promoted as a way to boost electricity supply to meet the country's fast-growing demand until offshore wind projects get under way. In the longer term, it is proposed that Ireland could benefit from interconnection with the wider European market via France, with potential to export surplus electricity when the offshore wind sector takes off. The Celtic Interconnector will have the capacity to carry 700 megawatts of electricity, roughly equivalent to the output of a large offshore windfarm.
RTÉ News
06-07-2025
- Business
- RTÉ News
How high might electricity prices rise to again?
Irish consumers are used to paying more than their European counterparts for electricity. Recent figures from Eurostat show prices here are the third highest across the European Union - almost 30% more than the average for the 27 member states. This means Irish households are paying roughly €350 more per year for their electricity, with the average annual bill here coming in at around €1,800. There are a few notable reasons for this. In comparison with other EU countries, Ireland has a relatively dispersed population with a lot of one-off housing. This makes the cost of maintaining the grid comparatively higher on a per capita basis. While demand - notably from data centres - has grown substantially in recent years, putting increasing pressure on supply. And when demand does peak, importing low-cost electricity from abroad isn't straightforward, given we're on an island with a lack of interconnectivity. Add into the mix volatility in the supply and cost of energy brought about by wars in Ukraine and the Middle East, and Ireland's complicated path to lower-cost electricity is apparent. As a result, both ESB Networks and Eirgrid - the operators of the country's energy system - have spent huge sums on much-need grid improvements in recent years. But all of this comes at a significant cost, which is largely passed on to customers. Network tariffs or grid fees, make up almost a third of an electricity bill - so that is well over €500 yearly based on the average bill. €19 billion network investment would add up to €16 onto bills ESB Networks and Eirgrid are now proposing an investment of nearly €19 billion over the next five years (2026-2030) to maintain and upgrade their networks to meet current and future demand. Such an investment, if approved by the Commission for Regulation of Utilities (CRU), would add up to €16 to customers' electricity bills each year. ESB Networks outlined the acute need for such an investment this week at the Oireachtas Housing Committee. Nicholas Tarrant, CEO of ESB Networks, said the demand for electricity for new homes was twice what it was for houses built during the Celtic Tiger due to the installation of heat pumps and the use of electric vehicles. He said the organisation is seeing "a major increase in demands for connections to the network". However, the CRU (which approves network investment plans) is instead proposing an initial €14.1 billion grid investment between 2026 and 2030 that would see at least €6 added annually to bills. This figure could be increased to €18.08 billion based on ESB Networks and Eirgrid meeting annual delivery targets - which would see the €16 yearly increase come into play. A final decision will be made on this proposal later in the year, but one thing is for sure, household bills will rise. Commissioner at the CRU Fergal Mulligan said the cost to the consumer "will be assessed on a year-by-year basis" and that the level of increase will "depend on a number of factors, including the level of delivery by the network operators and how suppliers choose to recover network costs". The electricity suppliers can individually determine what level of these charges they either absorb or pass onto their customers. Daragh Cassidy from comparison site is hopeful households mightn't have to bear the full cost of this, pointing out that "if the wholesale cost of electricity, which makes up around half of the price we pay for our electricity, were to fall substantially this might cancel out any increase in grid fees over the coming months and years". Further network charges to come into effect later this year However, even if the amount added to bills from future grid investments (from 2026) is relatively low, later this year customers will still be hit by network charges from the current round of approved investment in the network (covering 2012-2025) - and they are expected to be rather substantial. Last year the CRU approved an increase of just over €100 in network charges on customers' bills annually. This year's grid-fee increase - to be determined in the coming months - isn't expected to be that high but will still add more financial pain to energy customers. Cutting back outgoings by avoiding these fees simply isn't an option, homes need electricity, so customers will need to be even more price-conscious to keep costs down. The CRU is encouraging customers to shop around and switch suppliers regularly to get the best deals and minimise the impact of any increase in charges. That's simple but effective advice. If you've been with the same energy provider - electricity and/or gas - for more than a year, the chances are you're paying more than you need to. Suppliers offer new customers the best rates, and it's important to accept this and be prepared to make the switch every year when you're contract is up. And this is a lot easier than many might think. "Everything can be done online in the space of a few minutes, you don't even need to contact your existing provider," Mr Cassidy said. The reality is we have a growing population, we're transitioning towards net-zero, and trying to build more resilience into energy systems. All of this needs to be paid for somehow, so incremental electricity bill rises (aside from those related directly to electricity prices) can be expected as we go further down this path.
RTÉ News
03-07-2025
- Business
- RTÉ News
Energy operators propose investment of up to €18.98bn to maintain networks
The operators of Ireland's energy system, ESB Networks and Eirgrid, have proposed an investment of up to €18.98 billion over the next five years to maintain and upgrade their networks to meet current and future demand. Such an investment, if approved by the Commission for Regulation of Utilities (CRU), would add up to €16 to customers' electricity bills each year from 2026. However, the CRU is proposing an initial €14.1 billion funding package across both companies over the five-year period (2026-2030) that would see at least €6 added annually to bills. This figure could be increased to €18.08 billion based on ESB Networks and Eirgrid meeting annual delivery targets. The CRU is now consulting with stakeholders on the regulatory and financial framework that will support these investments. It will make a final decision later this year, with the new investment plan and costs starting from January 2026. It published the details today as part of the Draft Determination on Price Review 6 (PR6), through which the CRU evaluates and approves the proposed investment plans submitted by the network companies to upgrade the electricity grid and associated infrastructure. The regulator said the proposed investment will deliver secure, reliable, and resilient networks and supplies, and empower customers through a more digital, flexible energy system with better customer services. PR6 deliverables will include the connection of housing, delivery of priority projects unlocking additional generation capacity, new offshore wind infrastructure capability, enabling delivery of electric vehicles, and the investment needed for a storm-resilient and smarter grid. The CRU said Ireland is going through "an unprecedented change in our use and demand for electricity and significant investment is required to ensure that Ireland has a high-quality network that supports the current growth in demand. "The network must also facilitate the move away from fossil fuels to cleaner energy and deliver a range of measures, such as microgeneration, electric vehicles, electrification of heat, and other services, that will provide a more sustainable use for our electricity network," it added. Commissioner at the CRU Fergal Mulligan said, "we realise that these significant investments may lead to increases in consumer bills in the short term and, given the financial pressures that many households currently face, network companies must keep the cost of moving to cleaner energy as low as possible for customers. "In terms of the cost to the consumer of this investment, it will be assessed on a year-by-year basis," he added. "But, as a guide, over the five years we expect the average annual increase to be between €6 and €16, however, this will depend on a number of factors, including the level of delivery by the network operators and how suppliers choose to recover network costs," he said. Daragh Cassidy from comparison site said the latest price review by the CRU "really underlines the scale of investment and work that's needed in our grid over the coming years. "The demands of a rapidly growing population, an increase in the number of data centres, the electrification of the wider economy, and the transition towards Net Zero all present various challenges, and of course costs - which have to be paid for somehow," he said. "A large part of our grid is also aging and many poles and wires need to be replaced or put underground. And this costs money too," he added. "While the potential €6 to €16 a year increase in household bills may not be welcomed by consumers, it's moderate in the overall scheme of things. "Bottlenecks in our electricity grid are now impacting on our housing delivery as well our ability to achieve our climate targets, which are among the biggest issues facing the country right now. So you could argue this is a price worth paying if it helps solve them," he added. "In the meantime, the current price review still has one year to run. In August the CRU will announce whether to increase grid fees for the 2025 to 2026 year. Last year it approved a hike that equated to an increase of just over €100 a year to consumers' bills, but it's expected to be much lower this year," he said. According to the CRU, the most recent Estimated Annual Bill (EAB) for electricity customers was €1,802 (as of April 2025), with network tariffs representing around 20-30% of that figure. Suppliers determine what level of these charges that they either absorb or pass onto their customers. Mr Cassidy added that "if the wholesale cost of electricity, which makes up around half of the price we pay for our electricity, were to fall substantially this might cancel out any increase in grid fees over the coming months and years. "So we may not necessarily see an increase in consumers' bills. And with electricity prices in Ireland still around 70 to 80% above where they were before the war in Ukraine broke out, you'd hope this is the case," he added.
RTÉ News
20-06-2025
- Business
- RTÉ News
Moneypoint Power Station to end coal burning after 40 years
After 40 years of operation ESB is to cease burning coal at its Moneypoint Power Station in Co Clare from today. However, the plant will continue to provide security of supply for Ireland's electricity system by operating as a back-up out-of-market generator of last resort for Eirgrid. It will use heavy oil for electricity generation in place of coal for the next four years. ESB is continuing the transformation of its Moneypoint power station, at Kilrush in Co Clare, into a renewable energy hub by ending the use of coal for electricity generation six months earlier than planned. It is a significant milestone in the organisation's Net Zero carbon emissions strategy. Two years ago, it signed an agreement with EirGrid to keep the plant generating electricity using oil from 2025 up to 2029. It will only be required to operate when the electricity system is short of generating capacity, and only under instruction from EirGrid. Oil generation is less carbon intensive than coal generation, and the station is expected to see significantly less running during this four-year period. Moneypoint will remain a key site for ESB and for the Mid-West region as the station evolves and transforms to support the Irish government to achieve its climate targets. ESB commenced its transition away from fossil fuel generation at Moneypoint in 2017 with the construction of a 17MW onshore wind farm. In 2021, it announced Green Atlantic at Moneypoint, a multi-billion-euro plan to transform the site into one of the country's largest renewable energy hubs, utilising its deep-water port and existing infrastructure. Phase one of this plan was completed in 2022 with a €50 million investment in Ireland's first synchronous compensator, a zero-carbon technology that allows the system to utilise ever increasing amounts of use of renewable electricity. The Moneypoint power station has been operating since the mid 1980s. It contains three separate coal-fired power generating units, capable of producing up to 305 MW of electricity each, giving the plant a total electricity generation capacity of 915 MW. At its peak of operation, it was capable of supplying about a quarter of Ireland's total electricity needs. However, in recent years its contribution has been significantly lower than that. Before the Moneypoint station was built Ireland was very heavily dependent on imported oil for the generation of electricity. However, the oil crises of 1973 and 1979, and the crippling shortages that resulted, underscored domestic and international fears about the security of that oil supply. It was because of that it was considered a good idea to include a substantial coal-fired power station in the electricity production mix. Coal is the most carbon intensive of all fossil fuels and is about 25% more carbon intensive per unit of electricity generated than Heavy Fuel Oil it replaced. However, back in the 1980's when Moneypoint was commissioned very little attention was paid to the issue of carbon emissions from burning fossil fuels for electricity. It that regard is perhaps ironic now that, as Ireland is ending the use of coal for electricity generation because of climate policy, it is temporarily reverting to burning the same type of oil for electricity that was being used before the three coal-fired units at Moneypoint were commissioned in the first place. This time round however, Moneypoint will not be active in the wholesale electricity market and will in effect only be operated for limited hours. It will be used as a back-up, out of market generator, that Eirgrid can call on any time they need extra generation capacity to ensure a stable supply of electricity for the Irish market. This means nevertheless that it will remain a critical station for the security of supply for the Irish electricity system, particularly over the winter period, and it will still be a significant source of carbon emission because it will burn a fossil fuel, oil. ESB has installed two massive heavy fuel oil storage tanks at Moneypoint with a capacity between them of 50,000 tonnes. Prior to this, the plant had the capacity to store enough coal for the generation of up to three months' supply of electricity. It is intended that the back-up generation of electricity at the plant using heavy fuel oil will cease in 2029.
