Urgent investment in electricity generation capacity is required to meet record demand for power, the State enterprise and technology advisory body has said. Jamie Smyth reports.
In its end-of-year statement, Forfás also called for more investment in electricity transmission infrastructure and new agreements to allow more producers to supply electricity to the national grid.
Forfás's comments were made as EirGrid, the national grid company, confirmed demand for power in the Republic had again reached record levels in January.
An EirGrid spokesman said yesterday that demand for power reached a new record level of 4,400 megawatts at 17.45 p.m. on January 7th, 2003. This surpassed the previous peak of 4,367 megawatts which occurred on December 10th, 2002, he said.
These surges in power usage during December and January are typically caused by cold weather. During a cold snap, consumers are more likely to use electric heaters and other power-hungry appliances.
The trend in electricity usage in the Republic has risen dramatically over the past 10 years due to much higher levels of economic activity. Peak demand for power in 1998 was recorded at just 3,436 megawatts. The peak figure recorded during 2001 was 4,091.
This rapid increase in demand for electricity has put pressure on the generating capacity and the transmission system on the national grid. There are also fears in industry that demand could outstrip supply unless more investment is channelled into the sector.
The statement from Forfás acknowledged that the electricity and gas markets in the Republic were undergoing profound change. It highlighted several issues including investment, the need to minimise cost increases, and to ensure the market structure provided adequate energy supply at competitive prices.
Meanwhile, the Forfás report also highlighted the need for: a moderation in pay inflation in line with slower productivity growth; promotion of greater competition in the non-traded services sector; implementation of the national spacial strategy; delivery of broadband communications for businesses; and improved infrastructure for waste management.
Forfás chief executive Mr Martin Cronin said last year was a challenging one for enterprise development in the State with sluggish growth in export markets, increased competition from low-cost locations and erosion of competitiveness. Economic conditions would remain tough over the next year and the Republic should sustain those industries that provided significant employment, he added.
