Gas Networks Ireland has refreshed its business strategy to guide how the gas network will evolve to support national decarbonisation and energy security goals in the period to 2035. The product of a six-month process involving the Gas Networks Ireland board and executive team, the new strategy was developed as a direct response to changes in energy markets and the broader geopolitical environment.
In particular, the strategy addresses changes to the energy trilemma, the delicate balance between the three main areas of our energy future: sustainability, security of supply and affordability.
“What we have seen over the past two or three years is a recalibration of the energy trilemma,” says Gas Networks Ireland head of strategy and planning Tim Gugov. “If you think of it as a triangle with each of the vertices pulling against the other; two years ago, the main focus was on sustainability. But geopolitical shifts, the war in Ukraine, the change in the US administration and competitiveness issues in Europe have driven a need to rebalance the triangle. It is now much more balanced, and we need to think a lot more about security of supply and cost to customers along with sustainability. This led us to revisit our strategy.”
Gugov joined the organisation in 2024 and brings vast experience to his role, having previously worked in energy strategy, transformation and innovation in the US, Switzerland, France and Singapore.
READ MORE
According to Gugov, the new strategy is designed to deliver a resilient gas network, support Ireland’s net-zero transition and keep customers at the heart of the energy system.
“Continuing to ensure Ireland has a resilient gas network is critical to shaping the country’s energy future ,” he says. “We transport gas 365 days a year and we do that safely and securely. We have almost 15,000km of pipes, that’s more than four times the circumference of Ireland, and we transport essential energy to almost 725,000 customers. So, we put safety first in everything we do.”
He points out that the decarbonisation agenda also brings new operational considerations as increasing amounts of renewable gases are transported through the gas network. “This will increase the number of entry points to the network. At the moment we have three, but we will have lots more in future.”
Reliability and flexibility of the gas network are fundamental. “We supply 30 per cent of Ireland’s primary energy needs and gas remains critical to electricity generation.”
Gas-fired power generation averages out at about 40 per cent of Ireland’s electricity needs each year, he notes. But at any one time it can climb to almost 90 per cent during periods of low wind output and when the sun isn’t shining.
“With more and more weather-dependent variable renewables coming on to the system we will need more and more flexible back-up capacity,” he continues. “By the end of this year we will have safely delivered seven new peaking power station connections, with five more in the pipeline for next year. Peaking power plants differ from baseload plants which run continuously, as ‘peakers’ are quick to start up and flexible in output, making them essential for balancing supplies of renewables with demand on the grid.”
The security of the network is paramount. “There are two very important angles to it, cyber and physical,” he explains. “Recent events such as the high-profile sabotage and damage to subsea telecoms cables and gas pipelines, particularly in the Baltic Sea, have led to increased concerns around threats to critical infrastructure. We have an aggressive internal programme to protect our sites and assets both from cyber and physical threats.
“In addition to the security of the network, we must also address the security of energy supply. Ireland is an outlier among EU member states in that it doesn’t have gas storage facilities or multiple entry points.
“About 80 per cent of our gas supply is imported from Scotland through two subsea interconnectors. The Irish Government has identified this as a significant risk and in March it approved the development of a State-led strategic gas emergency reserve to advance Ireland’s energy security. This is a key focus in our strategy.”
The sustainability component of the trilemma, however, remains critically important. “There are three elements to this. The need to work collaboratively with all stakeholders, support the delivery of renewable gas, and decarbonise our own operations. Collaboration is critically important. We need to work collaboratively with other players in the energy system to develop a joint integrated plan.”
Energy demand is changing, and we have to continuously review and optimise our tariff structure to reflect those changes with equitable and fair pricing for all of our customers. It’s imperative that we also continue to advocate for the right policies that reflect the interests of our customers
— Tim Gugov
The organisation is already embracing renewable gas in the form of biomethane. “Biomethane represents a fantastic opportunity for Ireland,” says Gugov. “Ireland’s potential to produce biomethane is the highest in Europe on a per-capita basis. We have a lot of agricultural land and a lot of raw material. The Irish Government has acknowledged this by committing to the delivery of up to 5.7TWh – 10 per cent of Ireland’s gas supply – of indigenously produced biomethane by 2030 as part of its Climate Action Plan.
To get there, the sector needs to be championed, and Gas Networks Ireland needs to accommodate these connections to ensure they can access the network. “Next year we will connect three anaerobic digestion plants to the network.”
Not all plants will be of that scale and in proximity to the gas network. “We will always have the situation where farmers and producers are located far from our network, and we have to think of ways to accommodate them.”
The solution is to collect the gas in trucks and transport it to centralised grid injection facilities. The first of these will be located Mitchelstown, Co Cork, with the first phase of the project being delivered next year. “When fully operational, the facility will inject up to 700GWh of renewable gas into the gas network per annum, reducing emissions by circa 130,000 tonnes of CO₂ per annum when at 100 per cent biomethane. This would help deliver 12 per cent of the government’s target,” Gugov notes.
Green hydrogen is a longer-term prospect and is dependent on the development of offshore wind to generate the surplus power which will be used to produce the hydrogen gas. “We need to facilitate hydrogen on our network, and we are doing R&D work on that at present. We are running pilot and demonstration projects.”
At present, those projects involve blending hydrogen with natural gas and testing it. The ultimate goal is to establish what is required to repurpose the network to carry 100 per cent green hydrogen. “We have a demonstrator project with a customer where we got up to a blend of 20 per cent hydrogen with 80 per cent natural gas without the need for any changes to processes or equipment. It also had a very positive impact on emissions.”
Customer centricity and affordability form the third and final part of the strategy. “Our customers have always been a critical area of focus for us and are the anchor in our strategy. Affordability for customers is now front and centre as well as a direct consequence of the shifting trilemma.
“We have to play our part in minimising costs to our customers and ensuring that energy bills remain affordable. To do so, we have to look at our own costs and how we spend money. We are investing over €200 million in capital this year, and we are looking at every aspect of that to ensure the money is spent efficiently. We also have a multiyear efficiency programme to reduce operating expenditure and improve service delivery.
“Energy demand is changing, and we have to continuously review and optimise our tariff structure to reflect those changes with equitable and fair pricing for all of our customers. It’s imperative that we also continue to advocate for the right policies that reflect the interests of our customers.
“The energy trilemma has shifted and our refreshed strategy reflects that. It will take us through a significant part of the journey to decarbonising the gas network at the same time as addressing security of energy supply and affordability issues.”
