Brendan Tuohy, CHAIR

Steering through the challenges of transformation

“We need a rapid and deep change in the way we do business, how we generate power, how we build cities,how we move, and how we feed the world. If we don’t urgently change our way of life, we jeopardize life itself."

António Guterres, Secretary-General of the United Nations

The past year has seen a significant increase in the recognition of the scale of the challenges posed by climate change. There is also now a widespread acknowledgement of the urgency required to address these challenges.

In June 2019, the Irish Government published the Climate Action Plan. Its objective is to enable Ireland to meet EU targets. To support the Climate Action Plan, EirGrid must prepare the power system so that renewable energy can provide 70% of all electricity by 2030. This is an ambitious but necessary target.

Meanwhile, in relation to Northern Ireland, the UK Committee on Climate Change published a significant report in February 2019.

Entitled ‘Reducing Emissions in Northern Ireland’, the report states:

‘The proposals in the report are not a prescriptive list of policy actions over the next decade. Instead, they serve as a starting point for the general principles and policy areas that policymakers could prioritise to deliver the necessary long-term decarbonisation of the Northern Ireland economy.’

The transition to low-carbon and renewable energy will require a significant transformation of the electricity system. There will be major changes in how electricity is generated, how it is bought and sold and in how electricity is used - such as for transport and heat. 

The electricity system will carry more power than ever before and most of that power will be from renewable sources. Coal, peat and oil based generation will be phased out.

These changes will start the journey towards decarbonisation of the power system in Ireland and Northern Ireland.

And while this is happening, new technology will allow electricity users to generate and store power, and return any surplus to the grid.

These changes will need to be managed in a coordinated and cost effective way. EirGrid Group is uniquely placed to play a leading role in the radical transformation that is now required.

Strategy 2020-2025

In September 2019, EirGrid published ‘Strategy 2020-2025: Transform the Power System for Future Generations.’ This is our response to these challenges.  

By 2030, Ireland will need 8,400MW and Northern Ireland 1,600 MW of new renewable generation - and offshore wind will play a major role. 

This clean energy will be essential to replace fossil-fuel generators and meet expected growth in demand. As we transition from other fossil fuels, gas-fired generation will still play a key role to meet demand for electricity.

There will also be a need to increase significantly the level of interconnection from the island of Ireland to Great Britain and Europe. This will need to rise to at least 15% of total capacity from the current 7%. Work is already underway in these areas.

This includes the Celtic Interconnector, an estimated €1bn plan to connect the grids of France and Ireland. EirGrid and Réseau de Transport d’Électricité (RTÉ), our French counterparts, are committed to delivering this landmark project. The European Commission recently committed €530m of funding to the project, with EirGrid and RTÉ investing the balance. 

Similarly, in Northern Ireland, SONI published its strategy for 2020-2025. This commits SONI to designing a green energy system that can accommodate 95% renewable energy at any one time.

This is a significant increase from the current 65% – reaching it would be a world-leading achievement. This increase will also be necessary if Ireland is to reach its 70% renewable energy target by 2030. 

The transition required to achieve climate change targets can only be realised with major societal change. New and strengthened grid infrastructure will be essential - including the critical North South Interconnector. Over the next five years, an investment of €2 billion and £500 million will be required in the respective grids in Ireland and Northern Ireland.

Working with Partners

EirGrid Group recognises that it cannot achieve this transition on its own. There will need to be work with partners to deepen and broaden community engagement.

EirGrid will also support an education and information programme on climate change. This was a key recommendation from the Joint Oireachtas Committee on Climate Action and the Youth Assembly on Climate Action.

Similarly, SONI will deepen and broaden its community engagement in Northern Ireland. SONI will also seek to work with partners to support an education and information programme on climate change.

EirGrid Group needs to deepen relationships with communities, businesses and the non-profit sector. It needs to strengthen ties to local authorities, public bodies, governments, regulators and the EU Commission. Finally, EirGrid Group will seek to build strong links with education institutions and research bodies.

These organisations can assist in helping EirGrid Group to deliver the required transformation. Strong partnerships are essential - not only to address the technical challenges, but also to win hearts and minds. We need communities, and the public at large, to support the huge transformation that is required of us all. We can only successfully address climate change in a timely manner with this support.

Thanks

I would like to express my sincere thanks to my predecessor, John O’Connor, for his stewardship of the board for the past six years. He has left behind a very impressive and successful company.

I also wish to express my gratitude to the very committed board members. They offered their dedication, expertise and service during the year.

I wish to thank Mark Foley, Chief Executive, and his colleagues on the executive, who offered me a very warm welcome. In particular, I want to thank the staff in the Group, many of whom I have already met in person. I have been hugely impressed by their dedication, professionalism and sense of commitment. They appreciate the vision and purpose of the Group. They also see the importance of its ambition to ‘transform the power system for future generations’. 

I would like to thank the Minister for Communications, Climate Action and Environment, Richard Bruton, TD. I am grateful for the honour he has given me by appointing me as Chairperson of EirGrid.

I wish to offer my congratulations to Northern Ireland’s Minister for the Economy, Diane Dodds MLA, as she takes office. I also want to thank the officials in the Department for the Economy in Northern Ireland. They been very supportive and have worked very well with the company.

I look forward to working with my fellow directors, management and staff in Dublin and Belfast for the good of all the people on the island of Ireland.

Finally - we are living in a time of major transition, and some may have a sense of despair and powerlessness at the existential threat of climate change.

However, I am reminded of the words of the Kerry poet, Brendan Kennelly. In his poem, ‘Begin’, he reminds us that, as humans, we possess an indomitable spirit. It is this spirit that we can now call upon to address climate change:

“Though we live in a world that dreams of ending, that always seems about to give in, something, that will not acknowledge conclusion, insists that we forever begin.”

Mark Foley, CHIEF EXECUTIVE

The journey towards our new purpose

2019 was a notable year for EirGrid Group. The highlight was the development and publication of the EirGrid Group strategy 2020-2025. Against the backdrop of the imperative for action on climate change and the decarbonisation of society, this is a seminal milestone in our history.

Towards a greener power system

A transformation of the power system is afoot due to the disruptive effects of climate change. EirGrid Group will be at the forefront of a revolution that will impact every individual on the island of Ireland. Electricity from renewable sources is going to play a pivotal role in this island’s response to the climate crisis.

That is the motivation behind our new strategy. EirGrid Group now aims to provide real leadership of the island’s electricity sector on decarbonisation and sustainability.

In particular, we now have the key target in Ireland of meeting 70% of electricity demand from renewable sources by 2030. This target, as set out in the Government’s Climate Action Plan, published in June 2019, is one of the most important drivers of our strategy. It will provide a clear focus for our organisation in the years ahead. I know we have the capability within the Group to achieve this ambitious goal.

The UK Government, meanwhile, has set a goal of achieving net zero carbon emissions by 2050. While Northern Ireland has not yet set a target, the move to clean energy generation is well underway.

In Northern Ireland, over 40% of electricity consumption was generated by renewable sources in the 12 months to September 2019. In Ireland, we operated with an average of 36% of renewables on the system in the same period.

Sustaining a dependable power system

Throughout 2019, we continued to operate a safe, secure and reliable power system. We achieved this while overseeing the first year of the restructured all-island wholesale market, which is now integrated with the European electricity market.

During its first year, the new market design has delivered improved efficiency in cross-border trading. It has also opened up new opportunities for market participants and has seen trade move in response to price changes. This means that we buy electricity from neighbouring markets when they are cheaper, and sell to them when they are more expensive. This benefits both the end customers and those investing in generation. This was the result we planned to achieve when implementing the new market.

Developing the grid

There have been significant developments made on the grid. During 2019, EirGrid progressed a major upgrade to the network that supplies power to Intel’s proposed new manufacturing plant in Leixlip.

We carried out several successful consultation events on this project. In November An Bord Pleanála approved our planning application for the infrastructure needed to support Intel’s expansion. This work enabled the largest ever foreign direct investment in Ireland.

This year EirGrid also began consulting on a new electricity project called Capital Project 966. This project will help us achieve our primary strategy goal: to lead the island’s electricity sector on decarbonisation. It will contribute to this goal by strengthening the electricity grid between Dunstown and Woodland in Kildare and Meath. This will ensure that the high amount of wind generation in the west of Ireland is transferred to and distributed to the east of the country. In turn, this will help meet growing electricity demand in this region.

Enhancing interconnection

We also carried out a number of consultation events for the Celtic Interconnector project. This project will create a vital link between Ireland and the European energy network. It will be a key element in our strategy to deliver 70% renewables on the power system by 2030.

In October 2019 we welcomed the decision by the European Commission to provide €530 million of funding to the Celtic Interconnector.

This followed the submission in June of an application for funding. This was made jointly by EirGrid and our French counterpart, Réseau de Transport d’Électricité.

The North South Interconnector also cleared a major hurdle this year. This project is a proposed new electrical link between Ireland and Northern Ireland.

In February 2019, the last of the legal challenges in Ireland was dismissed for this project. However, in Northern Ireland, prior planning approval was withdrawn. This was due to a legal challenge that argued permission could not be granted in the absence of the Infrastructure Minister. The application has now returned to the Department for Infrastructure for re-consideration. We are hopeful that the recently appointed Infrastructure Minister will make a new decision in the coming months.

Forecasting for the future

Planning for and managing growing demand on the system has become part of the everyday challenge for the EirGrid Group. According to our Generation Capacity Statement for 2019-2028, demand in Ireland is expected to increase significantly over the next decade.

This is due to increased economic growth and the expansion of many large energy users, including data centres. In contrast, demand in Northern Ireland has been relatively stable and this is expected to continue.

However, we need always to plan ahead. This is why we hold auctions every year where we seek bids to ensure the system has adequate capacity in the near to medium term. The first four year capacity auction took place in March 2019. This secured capacity to meet our forecasted needs for power from October 2022 to September 2023.

Since 2017, we have introduced scenario planning in our grid development process - called “Tomorrow’s Energy Scenarios”. This examines a range of future visions for demand and supply on the power system, depending on a range of different assumption sets.

In 2019, we went out to consultation on our future energy scenarios for Ireland and Northern Ireland. The feedback from this process will help us to outline a clear pathway for the island’s clean energy transition over the next twenty years. It will also ensure we continue to operate the system in a safe, secure and stable manner.

Managing the transition towards renewable energy

EirGrid and SONI are recognised as world leaders in integrating renewable sources of electricity on the power system. In particular, we have a track record of meeting the technical challenges in running a power system with very high levels of wind energy.

In 2019 we continued our important work in this area by leading a major EU research project into the deployment of renewable energy. EU-SysFlex, entering its third year, comprises 34 organisations from 15 countries across Europe and has a budget of €26 million.

The project aims to make practical improvements and to offer recommendations for policy-makers. In the second year of the project, detailed analysis of a range of future scenarios has been conducted. In 2019 we also devised the Flex-Tech Initiative. This initiative provides a platform for engagement with stakeholders across the island of Ireland.

We use this to explore how to transform the power system so it can handle ever-increasing levels of renewable electricity. Through Flex-Tech, we collaborate with industry, regulators, ESB Networks and NIE Networks. This helps us to identify and breakdown key barriers to the integration of renewables in Ireland and Northern Ireland. Learnings here will inform our European counterparts and stakeholders in the EU‑SysFlex project.

Thanks and appreciation

I wish to record my thanks to John O’Connor who retired as chair of the board of EirGrid Group in November 2019. This followed six years of outstanding and dedicated service, including stewardship of the process which created our new strategy. I am delighted to welcome our new chair Brendan Tuohy to the role, and I look forward to working with him.

I also wish to thank Minister for Communications, Climate Action and Environment, Richard Bruton TD, and his officials.

In Northern Ireland, we look forward to supporting Minister for the Economy, Diane Dodds MLA in her role to develop and implement an energy policy. I also want to thank officials in the Department of the Economy. Both departments provided constructive relationships and support throughout a milestone year.

Finally, I would like to thank the EirGrid Group staff and executive team. In particular, I want to recognise those who engaged with and contributed to the development of our new Strategy for 2020-2025. This achievement would not have been possible without your hard work and dedication. I look forward to the execution phase of this ambitious and exciting strategy which will transform the power system for future generations.

Our reported operating profit increased from €82.9m in 2018 to €113.3m in 2019. Reported profit before tax also increased from €65.8m in 2018 to €96.0m in 2019.

EirGrid Group consists of several regulated businesses. In any year, the revenues collected by these businesses may vary from the levels that were previously agreed with its regulators. This is because tariffs are agreed based on forecasts and are collected based on actual energy consumption. Costs may also vary from forecast levels.

When this happens, it can make our reported profits appear inflated - as is the case for this financial year. Disregarding these statutory adjustments, the underlying profit before tax for the Group was €22.3m in 2019.

Regulation

Our TSO activities in Ireland and Northern Ireland are regulated by the Commission for Regulation of Utilities and the Utility Regulator respectively.

The Group also holds two licences as Interconnector Operator, one from the Commission for Regulation of Utilities and one from the Office of Gas and Electricity Markets (Ofgem) in the UK.

SEMO in its role as Market Operator for the SEM, is regulated by the SEM Committee. This comprises the Commission for Regulation of Utilities (CRU), the Utility Regulator (UR), an independent member and a deputy independent member.

EirGrid plc and SONI Limited were designated as Nominated Electricity Market Operators (NEMOs) by CRU in Ireland and UR in Northern Ireland respectively. We provide NEMO services through SEMOpx a 75/25 joint venture between EirGrid plc and SONI Ltd.

In advance of each tariff period, we submit forecasts to the relevant regulatory authority. These cover customer demand, operating costs and other revenue requirements. Following a detailed review process, the regulators then issue a formal determination of the allowable revenue that the business can recover.

As with any forecast, there can be variations between the projections and the actual revenue recovery, or cost out-turn. This can result in regulatory under or over recoveries. Any such under or over recoveries are adjusted for in the reported revenue for a subsequent accounting period.

This can give rise to volatility in the statutory reporting of earnings for the Group. This is because accounting regulations do not permit results to be smoothed by anticipating under or over recoveries.

In 2019, ancillary service costs were much lower than expected. This resulted in an over recovery of €63.4m which makes up a significant element of the profit before tax of €96.0m. The over recovery was as a result of contracted volumes been lower than expected in some services.

One of the reasons for this was the forecast was set for the new SEM Market without the availability of live market data. This made it more difficult to compile an accurate forecast of spending on DS3 system services, as assumptions can change quickly. Dispatches were more benign from a DS3 system services perspective so the annual spend was significantly lower as a result. Local reserve contracts were also under budget.

EirGrid TSO is operating under the 2015-2020 Price Control issued by the Commission for Regulation of Utilities in December 2015. SEMO is operating under the 2016-2019 Price Control, as published by the SEM Committee in August 2016.

SONI is operating under the 2015-2020 Price Control, as amended in November 2017. This was due to a determination from the Competition and Markets Authority (CMA) following an appeal from SONI. Price Controls for SEMO and SEMOpx are determined by the SEM Committee which is responsible for the regulation of both the SEMO and SEMOpx.

The SEMO and SEMOpx price controls provide, on a combined basis, for the recovery of allowances for the EirGrid (75%) and SONI (25%) portions of SEMO and SEMOpx operating costs and depreciation and return on their Regulatory Asset Bases (RAB).

The current SEMO Price Control period runs from 1 October 2018 to 30 September 2021. The current SEMOpx Price Control period runs from 1 October 2018 to 30 September 2019. Consultation on the next SEMOpx Price Control period from 1 October 2019 to 30 September 2022 is currently ongoing.

Revenues and Profitability

The Group’s revenue is primarily derived from regulated tariffs. The main revenue is the Transmission Use of System (TUoS) tariff. This is a charge payable by all users of the transmission systems in Ireland and Northern Ireland.

We also earn a share of tariffs as Market Operator and Nominated Electricity Market Operator for SEM. Revenues are also derived from the use of the East West Interconnector through auctions. We also earn congestion income for the provision of daily capacity into the energy markets.

Group revenue for the year to 30 September 2019 of €747.8m was slightly lower (€10.6m 1.5%) than the previous year.

The profit before tax for 2019 was €96.0m. This is up from €65.8m in 2018, mainly as a result of lower than anticipated costs relating to new DS3 System Services arrangements.

Excluding the impact of over and under recoveries on reported profit, management’s estimate of the underlying operating profit for 2019 was €23m. EirGrid paid a dividend of €4.0m in April 2019 in respect of 2017/18.

A dividend of €4.0m in respect of 2018/19 is proposed to be paid in the second quarter of 2020.

Financing

The Group continues to be in a sound financial position. The Group’s largest borrowings relate to the East West Interconnector and have long repayment dates and are fully hedged against interest rate fluctuations.

New credit facilities were put in place for the go-live of the new SEM. During the year, the Group had drawn down €109.6m from these revolving credit facilities. This was used to fund working capital requirements in the balancing market. Interest on these borrowings is at floating rates.

Key Financial Highlights €M

This ambition is built on our long-standing work to prepare the electricity system for the transition away from fossil fuels. In 2019, there were several notable developments in this area.

Managing wind power

As we move towards less predictable generation, we must ensure the electricity system stays secure and reliable. We face two key challenges: managing too much wind, and too little wind.

During the storm season in 2018-19, there were six that reached orange warning status: Callum, Diana, Deirdre, Erick, Gareth and Hannah. In response, we carried out a number of defensive and preparedness actions.

First, we prioritised the return to service of any lines that are already undergoing works, so the grid is as strong as it can be before the storm.

We then made detailed plans for conventional generation to balance the system. This takes into account that we will first have more wind power, but we may then have less - as turbines are disabled if wind speeds go higher than 90km per hour.

We also needed to plan for potential changes in demand if schools and workplaces close, and as lines fail on the distribution system. This comprehensive approach has allowed us to successfully weather the storms of recent years.

In contrast, when forecasts show we have little or no wind, we also have to make careful plans. In this context, the power system increasingly relies on fast-start gas turbine generators.

Unlike legacy fossil-fuel burning stations, these can come online very quickly. Although they cannot yet provide high capacities, they have proved to be a useful tool to help manage the uncertainty of wind generation.

Climate Action Plan for Ireland

The Irish Government’s Climate Action Plan was published in June 2019. EirGrid is central to facilitating the implementation of government policy on climate change as outlined in the plan.

The plan requires that renewable energy provides 70% of all electricity by 2030. This electricity will be generated from renewable sources such as offshore wind, solar and onshore wind. EirGrid is actively working with stakeholders to deliver our contribution to this plan.

Offshore wind will be a key component of a clean electricity system. We need to ensure that offshore wind is developed to suit the context of the electricity system across the island of Ireland. To achieve this, we are carrying out an objective assessment of offshore grid delivery models around the world.

Addressing Climate Change in Northern Ireland

The current Strategic Energy Framework comes to an end in 2020. While Northern Ireland’s exact target for 2030 is not known, the direction of travel is clear. The UK has made a legislative commitment to achieving net zero greenhouse gas emissions by 2050.

In the absence of a target, SONI has published its strategy for 2020 - 2025. This is focused on transforming the power system so that it can be ready to manage increasing levels of electricity from renewable sources. This transition is necessary to realise net zero carbon emissions by 2050.

Through the period of this report SONI has worked and continues to work closely with key stakeholders. These include the Department for the Economy, NIE Networks and the Utility Regulator. We are aiming to inform the Department’s development of the next energy strategy for Northern Ireland. For this reason the first Northern Ireland-specific ‘Tomorrow’s Energy Scenarios’ was a vital step in 2019.

Renewable Customer Connections

Ireland

In 2019, 11 new wind farms were connected to the Grid in the South West, West and North West providing a total of 300 MW of renewable energy. This includes new wind farms at Booltiagh, Glenree, Knockacummer, Knockalough, and Srahnakilly (Oweninny).

This follows 739 MW of wind farms that EirGrid connected to the system in the previous three years from 23 renewable projects. We anticipate that an additional 906 MW of renewable energy will be connected, from 18 renewable projects, by the end of 2020. This will provide a total of 1,945 MW of renewable generation connected to the electricity system since 2016.

Northern Ireland

In Northern Ireland, approximately 1,035 MW of renewable projects were connected to the system during the 2016-2018 period.

An additional 131 MW of wind farms have applied for connection to the transmission system in Northern Ireland. There are also accepted connection offers for a 100 MW data centre project and five battery storage projects – with a total capacity of 300 MW.

Battery storage will be vital to balance the system as more renewable energy is added in the coming years.

Renewable Energy Support Scheme

A key part of realising Ireland’s 2030 climate action targets will be the Renewable Energy Support Scheme (RESS). This in an initiative from the Department of Communications, Climate Action and Environment to encourage community participation in smaller renewable energy projects. The goal across the EU is for this scale of project to make up 32% of all renewable generation by 2030. This diversity will increase security of supply.

EirGrid has been tasked with developing and managing the auction process for this scheme. Considerable progress was made this year on the high-level design of the first RESS auction. This concluded with EirGrid signing off on the agreed approach. This was co-signed with the CRU and the Department of Communications, Climate Action and Environment.

East Coast Opportunity Generation Assessment

In February 2019, EirGrid published the East Coast Opportunity Generation Assessment. This report identifies the capacity available for new offshore wind at multiple locations along the east coast of Ireland.

It also considers the capacity available for new conventional generation along the east coast. The report states how the grid would need to be reinforced to increase capacity.

The DS3 System Services Framework

We want to make sure that the power system operates securely and efficiently. At the same time, we need to facilitate higher levels of renewable energy. To achieve this, we established our DS3 Programme - Delivering a Secure, Sustainable Electricity System.

One of the key elements of this programme is System Services. These support the electricity system to make it more flexible. This is essential when we have high levels of renewable on the systems. We use a range of technologies to provide this flexibility. They include conventional generators, wind units and other new technologies.

System Services also gives us a mechanism to trial new technologies. This allows us to prove their capability before we integrate these services on the electricity system.

To date, we have used System Services to integrate technologies such as wind, batteries and demand-side management. These services will form a key part of our plans to integrate high levels of renewables onto the power systems of Ireland and Northern Ireland.

EU-SysFlex

To combat climate change, electricity systems across Europe must integrate more renewable generation. The EU‑SysFlex project, now entering its third year, is a European Commission funded project led by EirGrid. The project seeks to enable the transition to a pan-European power system with high-levels of renewables.

The project aims to make practical improvements and to offer recommendations for policy-makers. In the second year of the project, detailed analysis of a range of future scenarios has been conducted.

The analysis indicates that integrating high levels of renewables brings many benefits to the power system. It reduces reliance on fossil fuels and carbon emissions. However, the project has also shown that a greener power system will be more technically challenging to operate.

The EU-SysFlex studies also show that the challenges are not only technical; they are also financial. As renewables increase, the changing market environment will cause the cost of energy to fall.

Future revenues may not be sufficient to cover the costs of investing in wind and solar technologies. The studies show that a further revenue stream is needed to meet renewable generation investment costs.

It is essential that the correct signals are provided to wind and solar generators, and to investors in these schemes. This will be key to driving the transition to a more sustainable power system.

Mitigations and solutions are required and EU-SysFlex will propose a range of these in the third and fourth years of the project. One of the solutions that will be proposed is the System Services Framework. This has already been implemented with great success in Ireland and Northern Ireland.

Looking ahead

Across Europe, energy policy continues to change at a significant rate.

This is apparent in national climate change objectives that followed 2016 Paris Agreement. There will also be new EU policies implemented in the coming years.

EirGrid Group has an active role in the development of these policies, and together with our partners, we will deliver the ambitious targets. This will provide a sustainable energy future for Ireland and Northern Ireland.

How we manage our environmental impact when planning the network

Respect for the environment is a key consideration in the development and operation of the transmission system.

Electricity transmission infrastructure includes elements such as overhead lines, underground cables and substations. These all interact in different ways with many environmental factors.

To comply with European and national laws in Ireland and Northern Ireland, we carry out Strategic Environmental Assessments (SEA). These assessments are based on our plans to develop the grid, and are published every five years.

Our current plans and SEAs cover the period 2017-2022. The latest Transmission Development Plans (TDP) 2018-2027 were published by SONI in July 2019 and EirGrid in August 2019 and they set out the transmission projects we are developing or intending to develop for the period of the plan. They also contain information about the needs and drivers of the projects.

In August 2019, EirGrid published an Environmental Appraisal Report (EAR). This report makes an environmental assessment of our current Transmission Development Plan. In particular, it looks at how our new plan complies with the SEA for our Grid Implementation Plan 2017-2022. Individual projects are all subject to environmental assessment outside of the SEA process. Some projects fall under a class of development requiring an Environmental Impact Assessment (EIA). When this happens, we submit an Environmental Impact Statement to the relevant planning authority.

In 2019 an EIA was completed for the North-South Interconnector in both jurisdictions. This was submitted to An Bord Pleanála in Ireland, and the Department for Infrastructure in Northern Ireland.

Energy use & environmental policies

EirGrid Group aims to lead the way by pursuing energy reduction and efficiency in our own operations. These efforts make a modest difference, but show our commitment - at a detailed level - to sustainability and decarbonisation.

Year on year, we have achieved a minimum standard of 3% energy reduction for our Dublin sites. This totals a 42% reduction since 2009, exceeding the 2020 reduction target of 33% set for public bodies. Our sources of energy usage across the group are from electricity and natural gas.

In 2019 EirGrid consumed 3,355 MWh of energy in both our Dublin locations. This energy use can be broken down as follows:

• 2,787 MWh of electricity, and
• 568 MWh of natural gas.

We continue to find ways to reduce our own energy use. In 2019, this included installing LED lighting in our second Dublin site.

We also installed LED lights in certain locations at our Dublin and Belfast offices. In 2020 we will continue to refurbish our headquarters to further improve energy efficiency and increase capacity.

Energy performance in SONI’s office has improved by 3% on electricity and 11% on gas compared to 2015. This year, SONI consumed 1,955 MWh of energy. This is broken down as follows:

• 1,456 MWh of electricity, and
• 499 MWh of fossil fuels.

In SONI we intend to change the remaining office lighting to LED. We will also install a building energy monitoring system to better manage energy usage.

Awards

Our work towards greater sustainability in the energy sector was recognised with a number of awards and nominations in 2019. These included:

• SEAI Energy Awards (Oct’18) – Winner in the Renewable Energy Project category for DS3;
• Irish Times Innovation Awards (Nov’18)  – Short-listed in the Sustainability category;
• Green Awards 2019 (Feb’19) – Short-listed in the Sustainable Energy Achievement Award category for DS3. Also short-listed in the Green Technology Award category for Power Off and Save,
• Responsible Business Awards in Northern Ireland (Mar’19)  – Short-listed for Environmental Leadership Award and Responsible Product / Service Award.

European Integration

Overall, it has been a very successful first year of the new energy and capacity markets.

The all-island Single Electricity Market integrated with wider European energy markets in October 2018.

During the first year of operation, the new market has delivered improved efficiency in cross-border trading. This increased liquidity in the long and medium term markets and opened up new opportunities for market participants.

EirGrid and SONI have also introduced new operational and planning procedures as well as grid connection processes. These reflect the harmonised European practices, and so allow for seamless trading with Europe.

We continue to engage closely with our stakeholders for future market amendments. The Day Ahead market coupling has seen interconnector trade move in the direction of price changes. This means that we can buy electricity when its cheaper, and sell it when it’s more expensive. This was one of the key reasons for integrating the market with Europe, and is exactly what we set out to achieve.

Capacity Market

The capacity market is a key service to secure the stability of the electricity system. It allows EirGrid Group to find the most economic price for the forecasted amounts of electricity needed to meet demand in future. This ensures there is always power available to everyone who needs it. To read more about the capacity market, see Case Study 2.

Tomorrow’s Energy Scenarios

Ireland

In June, EirGrid launched a consultation called Tomorrow’s Energy Scenarios 2019. This report outlined EirGrid’s first revision to the scenarios originally produced in 2017. The new scenarios reflect changes driven by a number of evolving factors.

Most notably, they capture changes in climate and energy policy. These reflect new multi-sector targets for decarbonising energy use, as set out in the Government’s Climate Action Plan.

Many stakeholders participated in the consultation and provided a lot of useful feedback. The consultation included a briefing session with external stakeholders at Engineer’s Ireland. This was very well attended and facilitated positive debate about Ireland’s energy future.

It also shows the vital role that Tomorrow’s Energy Scenarios plays from an industry and government policy perspective.

Northern Ireland

In September 2019, SONI launched Tomorrow’s Energy Scenarios for Northern Ireland. This report detailed a first set of draft scenarios. These were based on feedback from stakeholders in the earlier scenario-building phase.

This report outlined three potential pathways for the Northern Ireland energy system to 2040. These pathways reflect the impact of societal, political, economic, technological and environmental changes.

The common factor across all three scenarios is the switch to low-carbon electricity for Northern Ireland. Where the scenarios differ is in the pace of change. To read more about Tomorrow’s Energy Scenarios, see Case Study 1.

Cyber Security

EirGrid and SONI provide a critical service, as every person, every business, and every household is dependent on the power system that we run. Increasingly, grid operators are under threat from the risk of cyber attack from malicious third parties. We make it a priority to respond to this threat.

At a foundation level, we fulfil our obligations for cyber security under the EU critical Network Information Systems directive. We are doing so in co-operation with the relevant authorities in Ireland and Northern Ireland.

At an operational level, we have a set of mission-critical procedures on cyber security to ensure our operations are as secure as possible. This includes defensive actions, as well as trialling our response to potential attacks.

At an individual level, we carry out a Group-wide awareness programme to educate our people on the risks, and how they can mitigate them. These include computer based training and monthly educational communications.

Large-Demand Customer Connections

Since 2016, we have seen in Ireland a significant increase in the number of, and consumption by, large-demand customers. The pace at which the customers want to connect is quicker than previously seen.

The same pressures from large-demand customers do not apply in Northern Ireland. However, there has still been an uptake in connection requests.

The large-demand customers in Ireland are almost exclusively made up of data centres. For data centre projects, we have connected 251 MVA across five projects since 2016.

In the same time-frame, we commenced the connection of six further data centres. These will add an additional 716 MVA of demand and will make for a total of 11 data centre projects connected to the grid. These additional data centres are expected to connect by the end of 2021.

During 2019 we worked with ESB Networks to start connecting the new Castlebagot 220 kV station to the transmission system. When connected in late 2019, the station will support large industry in the area.

A new 220 kV and 110 kV station is nearing completion in North County Dublin at Belcamp. This will relieve load congestion at the existing Finglas 220 kV station, and support future expansion in the area. This includes Dublin Airport, Beaumont Hospital and several high-profile business parks and data centres supported by the IDA.

In North Kildare, Intel has applied for an increased power supply. This will support ongoing and future manufacturing activities at the facility. To accommodate this, we identified a new connection method.

This will connect the existing Maynooth – Woodland 220 kV overhead line to a new 220 kV station using 2.3km of underground cable. We held public open days in Leixlip, Co Kildare in early and mid-2019, and there was good local engagement. Planning consent was approved by An Bord Pleanála in November 2019.

East West Interconnector

EirGrid owns and operates the East West Interconnector. This is a 500 MW high voltage direct current electricity interconnector that links the grids in Ireland and Great Britain. It helps provide a safe, secure, reliable and affordable energy supply for both systems.

EirGrid continues to maintain the East West Interconnector to a high standard. This includes the recertification of the Asset Management System to the ISO 55001:2014 standard in June 2019.

This ensures the interconnector is available to help further integration of renewable energy on the system. In doing so, it will help to transform the power system for future generations – the primary purpose of our new strategy. In December 2018 we also celebrated our strong safety record of five years of operations with no lost time accidents.

North South Interconnector

The North South Interconnector is a key project for EirGrid and SONI. It will provide a second high-capacity connection between the two electricity systems on the island of Ireland.

Delivery of the North South Interconnector is critical to deliver value for consumers across the island. This project will make the grid more robust, which will allow for the connection of more renewable generation. It will also enhance security of supply and will enable more competition in the wholesale electricity market.

This will benefit householders, communities, businesses and the economy - in both jurisdictions. We estimate that these benefits will save electricity users at least €20 million per annum when put into service.

In Ireland, planning approval for the North South Interconnector was granted by An Bord Pleanála in December 2016. The approval faced a number of legal challenges, the last of which was dismissed by the Supreme Court in February 2019.

This ruling means that the North South Interconnector has now cleared all of the planning related legal hurdles in Ireland. It is now clear to proceed to construction in this jurisdiction.

In Northern Ireland planning approval was granted in January 2018. However, in February 2019, that planning approval was withdrawn. This was due to a legal challenge that argued that it could not be granted in the absence of the Infrastructure Minister. The application has now returned to the Department for Infrastructure for re-consideration. We are hopeful that the recently appointed Infrastructure Minister can make a new decision in the coming months.

Other transmission projects progressed this year

Every year, EirGrid and SONI works to strengthen the electricity grid. This includes refurbishment and upgrades, as well as the development of new infrastructure, when necessary.

Ireland

Poolbeg Reactor (50 Mvar): The second Poolbeg reactor was energised in October 2018. Reactors provide a combination of benefits to the grid, but in this context they help us manage voltage issues in the region, when needed.

Carrick-on-Shannon-Arigna-Corderry 110 kV line uprate: This was completed in October 2018. This project is a system reinforcement to enable the connection of wind generation in the North West region. It allowed us to grant a further 1113 MW of access to generators in this region.

Moneypoint 400 kV transmission station: There was a range of works competed to support this station, which is a key for security of supply. This included the transfer of the Moneypoint to Oldstreet 400 kV line, two transformers and the Moneypoint to Prospect 220 kV line.

North Connacht 110 kV Project: In January 2019, EirGrid announced the best performing locations for this new 110 kV line to connect to the grid. These are Moy (Ballina, Co. Mayo) and Tonroe (Ballaghaderreen, Co. Roscommon). Throughout 2019, we engaged with stakeholders and local authorities in the region. Our liaison team also visited Tubbercurry and Swinford and held public information days. We used this engagement to collect information on technical, environmental and other constraints. In turn, this will inform the proposed route for both the overhead line and underground cable options.

Cross Shannon 400 kV Cable: In October 2018, we started the marine survey operations for this project, which were completed in December. This allowed EirGrid and its consultants to identify the best performing marine route. We also developed cable routes and associated infrastructure. Public consultation on the best performing project option started in June 2019, and engagement is ongoing. EirGrid is currently preparing the applications for a foreshore licence for this project.

Lanesboro 110 kV Substation Redevelopment: Public consultation took place in April 2019. The feedback received from local residents, community groups and local representatives was positive. We submitted a planning application to Longford County Council in July 2019 and expect planning consent in early 2020.

Kilbarry 110 kV Station: This is one of the key 110 kV stations supplying load to Cork city and the surrounding areas. Its development allows us to meet requests for distribution system load connections. Planning permission was received from Cork County Council in June 2019.

Northern Ireland

Airport Road 110 kV substation: This is a reinforcement of the transmission system in Belfast. This is driven mainly by recent growth in demand due to several redevelopment sites. The most notable of these is Titanic Quarter, which has the potential to increase total demand growth in the city by over 50 MVA. To meet this demand, we are developing a new 110/33 kV substation and uprating an existing 110 kV double circuit tower line currently operated at 33 kV. We held public consultations for this project in March 2019. We held a public consultation event for this project in March 2019. We submitted the planning application in December 2019, with construction expected to commence in 2021.

Agivey 110 kV Wind Farm Project: We submitted a planning application for the new 110/33 kV station and 110 kV overhead line in February 2019. The new station and circuit will allow for the connection of 90 MW of renewable energy to the grid in the Garvagh area of Northern Ireland

Drumkee and Mullavilly Battery Energy Storage: We started to work on the connection of two new 50 MW battery storage schemes. These are near the Tamnamore and Tandragee 275/110 kV substations. SONI and NIE Networks are working closely to meet the target energisation date of Q3 2020.

Strengthening the grid in the East

This year EirGrid ran a consultation on a new electricity project called Capital Project 966. This project aims to strengthen the grid in the east of the country. It will transfer electricity from the west of Ireland and distribute it across the network in Meath, Kildare and Dublin.

Following the consultation, several best-performing technical solutions emerged. These have now progressed to the next stage for further evaluation. At the end of this next stage we will put forward a best-performing solution which will then be developed.

Laois Kilkenny 400 kV Substation

National infrastructural development projects can generate considerable debate and, on occasion, public opposition. An example of this is the Laois Kilkenny project. In this instance, protesters are blocking access to a construction site for a 400 kV substation. The project itself is a vital development. It will resolve the quality and security of supply issues across the Midlands and South East. EirGrid is working in conjunction with ESB Networks to resolve the issues raised by local interest groups. We will continue to reach out to them over the duration of the project.

Statcom Projects

In the south west of Ireland, significant levels of wind generation are connected to the electricity system. This will continue to increase in the coming years. Growing levels of renewables requires further reactive power support. The optimal solution here is to install two new ±100 Mvar Statcoms at existing stations.

A Statcom is a dynamic and fast-acting voltage control device. New devices will be installed in Ballynahulla station in Co. Kerry and in Ballyvouskill station in Co. Cork. Planning permission was received for these projects this year. Trials to increase voltage on existing lines from 220 kV to 400 kV.

New developments in electrical composite insulators have made it possible to convert existing 220 kV lines to 400 kV. In 2019 we investigated an innovative solution to increase the transmission capacity of 220 kV lines. We achieve this by redesigning the top portion of the pylons. This technology has the potential to greatly increase power capacity on the electricity grid. Most importantly, this could be achieved without requiring new lines that are costly and slow to develop.

This innovative up-voltage project is being trialled on the existing Donard test line in West Wicklow. The next phase of this voltage uprate trial is to build the single circuit and double circuit towers on this test line. Planning consent was granted in October 2019 by Wicklow County Council. The construction of these towers will take place in 2020.

"When we operate the grid, we classify the potential problems. Amber alerts are the lowest category - they happen if we suddenly lose some electricity generation. These kinds of problems don’t often happen - but when they do, it takes expertise, cool heads and clear thinking to resolve them.

"At 2:30pm on 9th October 2018, something almost unprecedented happened. Two large Northern Ireland generators suddenly went down at the same time. In order to ensure system stability in Northern Ireland, three large generators need to be on the system at all times. This loss made the Northern Ireland electricity system vulnerable.

"And on top of this, too much power was now being pulled from Ireland. If the line between the two jurisdictions had become overloaded - or if another larger generator went down - it risked a complete system collapse.

"The team in the SONI control room near Belfast acted quickly. We ordered fast-start generators dispersed across the region to come online immediately. This geographic spread reduced the risk of further system deterioration if we experienced another generator loss.

"As the fast-start plants started to produce power, we then needed to slowly re-balance the power flows from Ireland to Northern Ireland. But we faced a worsening of the situation as the afternoon moved closer to peak demand time in the evening. This is because the fast-start generators can't provide the same capacity as the large units that were down. So, we then asked customers who could reduce their power use - we call them demand-side units - to stop drawing electricity from the system.

"In combination with the fast-start generators, this successfully got us through till 6.57pm. At that point the large generators were back on the system, and we could clear the Amber alert.

"It certainly was a challenging event, especially for a couple of hours until we were able to remove the Amber alert. But that's what we're trained for, that's what we do here in SONI. We keep the lights on and keep the system secure. What's interesting is you come into work and you don't know what you're going to get. But that's what happens in a real-time environment."

- Tom McCartan, Assistant Grid Control Manager; Michael Flynn, Assistant Grid Control Engineer; John O’Higgins, Grid Control Engineer

Watch the video below or click here.

Partnerships across the island

Strategy Development

As part of the strategy development process we engaged closely with our partners and key stakeholders. These included our shareholder, ESB Networks, NIE Networks, our regulators, and government departments in Ireland and Northern Ireland.

Our partners and stakeholders were asked about their views on industry and policy trends and the likely impact on EirGrid Group. We also discussed their priorities and strategic objectives. The aim was to see how EirGrid Group could assist them in achieving their goals, and to seek their views on EirGrid Group’s own strategic ambitions. These meetings helped us enormously in creating EirGrid Group’s strategy for the next five years.

The FlexTech Initiative

Another area where we are supported by and work closely with our partners is the FlexTech Initiative. This initiative, which we devised in 2019, is a platform of engagement for our sector. It brings together key decision makers across the island. This includes operators of transmission and distribution systems, regulators and the wider industry.

FlexTech aims to maximise opportunities for effective use of new and existing technologies. It also identifies and helps to break down key barriers to integrating renewables on the island. The electricity industry is evolving at an ever increasing pace in response to the move away from carbon-emitting fuels. To react to this, transmission and distribution system operators need to work together.

FlexTech gives EirGrid and SONI the chance to embrace opportunities and resolve issues as they arise.

In June 2019, EirGrid and SONI held the first FlexTech Integration Initiative industry forum. This was in partnership with ESB Networks and NIE Networks. It was a welcome opportunity to engage with industry and gain cross-sectoral insight in Ireland and Northern Ireland.

SONI and NIE Networks Joint Working Group

We established a joint working group between SONI and NIE Networks in August 2019. It aims to produce a common roadmap for the move towards a decarbonised energy system in Northern Ireland.

This working group will provide input as the Department of the Economy develops the future energy strategy for Northern Ireland.

Distributed Series Reactors

Since 2016, EirGrid has trialled Distributed Series Reactors (DSRs) in County Waterford. This was done in collaboration with Smart Wires and ESB networks.

DSRs are power flow devices that operate by diverting power flows to underutilised assets. They are installed on existing overhead line infrastructure.

When installed, they resolve existing or anticipated thermal loading issues. In doing so, they maximise the use of existing transmission infrastructure.

The success of the trial with SmartWires and ESB networks was on an 110kV line in Cullenagh, County Waterford.

This means DSR technology is now tested and ready to be used, when needed. In 2019, EirGrid visited the French TSO RTE. This allowed us to gather insights on RTÉ’s recent experiences in deploying the DSR technology on their transmission system.

Later in 2019, a procurement process was completed by ESB Networks. This resulted in Smart Wires being awarded the contract for supply of a large number of DSR units for deployment on the transmission system.

A project is being progressed in 2020 for the DSRs to be installed on a 110 kV line in County Roscommon.

Global Partnerships

Development of the Celtic Interconnector

EirGrid, together with our French counterpart Réseau de Transport d’Électricité (RTÉ) is continuing to develop this project.

The Celtic Interconnector is a proposed link to allow for the movement of electricity between Ireland and France. It will send high voltage electricity as high-voltage direct current (HVDC) using an undersea cable.

The European Commission sees interconnection between member states as strategically important. This is because interconnection makes the European electricity system stronger and more integrated.

Because of this, the Celtic Interconnector has been designated as a Project of Common Interest. This means it benefits from accelerated procedures and funding.

In October 2019 the European Commission announced that it would provide €530 million of grant funding to the project.

This interconnector will be Ireland’s first direct electricity link to continental Europe. It will allow large amounts of electricity to be exported to and imported. When complete, it will have the capacity to import and export up to 700 megawatts of electricity, enough to power 450,000 homes. The interconnector is scheduled to begin operation in 2026.

The Celtic Interconnector will put downward pressure on electricity prices for end users. It will also offer increased options for market participants in terms of where to buy and sell electricity.

Adding this interconnector will also increase security of supply for the power system here. This will help us break new ground in the amount of renewable energy we can integrate. For these reasons, this project is a key step towards our new focus on sustainability and decarbonisation.

New York Power Authority

In September 2019, EirGrid and ESB Networks formed a memorandum of understanding on a project in the United States. This agreement sees both organisations collaborating with the New York Power Authority.

Together, we will carry out research with the Electric Power Research Institute, a U.S. non-profit organisation. This agreement lays out plans to model, create and test new solutions for energy systems.

This will take place in New York state’s first collaborative electric utility research facility. The collaboration aims to accelerate improvements to energy infrastructure.

The benefits of this work will be more reliable and efficient electric grids. This will allow distributed generation and related resources to be integrated on local and regional power grids.

"One of our core strategic goals is to build stronger partnerships with the service providers who support the power system. We are always looking to find ways to work better together. We want to understand and meet  their needs more effectively and more efficiently.

"One of our core partnerships is with companies who supply power and other services to the grid - we call them our customers. Most of the capacity on the power system comes from generators, but an increasing amount comes from demand side units. These are high-volume users of electricity who agree to use less power at peak times, or on request.

"This year, we’ve worked to build a stronger working relationship with DRAI - the Demand Response Aggregators of Ireland. They are a representative body for demand-side management across the island of Ireland. They provide several services to help us operate and manage the power system more efficiently. They’re particularly useful in allowing us to increase the amount of renewable electricity we can carry on the system.

"Before this year, we sometimes worked with DRAI, and sometimes with individual companies on an ad hoc basis - which wasn’t always effective. In 2019, we set up quarterly meetings with DRAI members to prioritise key issues and to work on specific challenges.

"These meetings have provided a platform for each party to understand the other’s needs, and to find common ground. DRAI also now have a regular opportunity to raise and progress key issues directly with us. As we start to work on these issues, we’ve already had some positive feedback from members.

"Paddy Finn, a DRAI member and MD of Electricity Exchange, said: ‘The regular meetings are a welcome development. They encourage delivery on action items, and help to progress decisions. The new relationship also allowed us to set up sub-groups to explore complex issues in more detail - which is already starting to deliver results.’

"Lisa McMullan, a DRAI member and head of regulatory affairs at GridBeyond, said: ‘The new engagement approach is very helpful. We now have the opportunity to discuss market issues in detail, and to present our perspective to decision-makers. This gives us all a better understanding of how each issue affects different stakeholders. We’re now able to develop lasting solutions.’ 

- Gill Nolan, Customers & Stakeholders

Watch the video below or click here.

Our new strategy will test the advances we have already made to date, and challenges us to go even further. The climate crisis, and our strategy to help tackle it, provide an urgent rationale.

Engagement with the public

Asking landowners and local communities to accept new infrastructure is challenging. Our aim is to achieve the highest standards of engagement, and to deliver better results as a consequence. We will enhance our role in educating on climate change, and we will respond in meaningful and persuasive ways to fears and concerns.

We made significant progress in this area in the last financial year. To provide a solid platform for our engagement and to raise awareness and understanding of what we do, EirGrid rolled out a new advertisement campaign in Ireland. This was entitled “Grid of Life”, and was launched in late 2018. The campaign depicts the role of electricity in scenes of everyday life. It demonstrates how critical EirGrid’s role is in keeping this electricity flowing across the country.

This campaign ran throughout the year. It appeared on TV, in cinemas, on national and local radio, and digital and social media. It reached a wide audience, including over half a million impressions on Twitter and two million impressions on Facebook leading to an increase in awareness and understanding.

From an engagement perspective it has been a busy year. Our mobile information centre and liaison team continued to travel around the country. We provided updates at local agricultural events on key projects such as the North South Interconnector.

These included the Castleblayney Agricultural Show in Monaghan and the Virginia Agricultural Show in Cavan. We also updated members of the public and stakeholders on the North Connacht project at the Bonniconlon Agricultural Show. Finally, we attended the National Ploughing Championships on three beautiful days of sunshine in September.

We also carried out eight weeks of consultation on the Celtic Interconnector project.

We looked for feedback on a short-list of three proposed landfall locations for the cable and six proposed location zones for the converter station in east Cork.

In Northern Ireland, we also continued our engagement in relation to our grid projects at several agricultural events. These included the Balmoral Show, the Armagh Show, the Omagh Show and the Clogher Valley Show. Our stands were busy, and our agricultural liaison team answered many questions from the public. Our work at these shows deepened our relationship with landowners and the wider community. 

Our regional offices in Armagh, Carrickmacross and Castlebar have remained open. We are always happy to receive members of the public in our regional offices and to answer any questions they might have.

Our community fund programme has continued to go from strength to strength. Last year we awarded over €70,000 to community groups in north Kerry as part of the Knockanure-Duagh Community Fund. The money was used for a wide range of community initiatives. These included the purchase of a defibrillator and training on its use. It also funded basketball equipment for a junior team, and the purchase of laptops for an after-school club.

In recent years, our organisation has taken great care to ensure the material with which we communicate with the public is accessible. This effort was recognised at the Plain English Awards during the year. We received two awards this year in the ‘Highly Commended’ category for two of our infrastructure project brochures.

Political engagement

At a political level, we continued to engage with elected representatives. We do so to inform them of our activities, and so we can answer queries from their constituents. We engaged with local authorities, regional assemblies, the Oireachtas, and with European Union representatives.

We also appeared at a number of Oireachtas Committee meetings throughout the year.

These included the Committees on Communications and on Climate Action and Environment. We also appeared before the Climate Change Committee as they deliberated on the report from the Citizen’s Assembly.

In Northern Ireland, SONI continued to engage despite the absence of the Stormont Executive.

Our team engaged with members of the NI Civil Service across various departments. Through sharing knowledge and data, SONI is supporting the Department for the Economy as they shape their updated energy policy. In addition, we continued to educate and inform elected representatives in Northern Ireland. This spanned local government, Stormont and Westminster.

We also engaged with representatives and members at party conferences, and held briefings at constituency offices.

We have and will continue to engage with broad range of stakeholders in relation to Brexit. It creates a potential for uncertainty in our operations, but we are planning on the basis that Brexit will not materially impact our activities.

This reflects assurances from the UK and Irish Governments, as well as the EU. All have stated their commitment to maintaining the all-island Single Electricity Market.

Our sponsorships and supports

EirGrid and SONI carried out a number of sponsorships in 2019. The aim of these activities is to raise awareness and understanding of what we do while giving something back.

We continued our sponsorships at grassroots level. This included our main sponsorship programmes with Monaghan United Cavan Football Partnership, the Hinterland Festival in Kells and the Ed Reavy Music Festival in Cavan. Other small sponsorships last year included Meath Chambers, Armagh Hockey Club, Carrick on Shannon Carnival Committee and Youth Work Ireland in Cavan Monaghan.

2019 was the fourth year of the EirGrid GAA U20 Football Championships. In Northern Ireland, we continued our sponsorship of the Ulster Rugby Premiership. We built on our partnership with Armagh RFC by delivering the well-supported Armagh Blitz event. Over 1,400 children from all parts of the country took part in this one day tournament.

These partnerships give us a platform to engage with communities. They also increase awareness and understanding of our work in the region.

Removing barriers to education is one of our key CSR focus areas. In support of this, SONI extended its partnership with Book Trust NI. This promotes early years’ literacy by providing book packs to families to encourage reading together.

EirGrid also partnered with the DCU Access Programme to support students from a socio-economically disadvantaged background.

Finally, we participated in the ‘Access to the Workplace’ programme. This sees DCU Access students carrying out summer internships in EirGrid. SONI also hosts several week-long work experience placements for Northern Ireland students throughout the year.

Customers and stakeholders

A key highlight of the year was engaging with our customers and stakeholders about our future strategy. We carried out this work as part of the development and roll-out of the new EirGrid Group strategy, launched in September 2019.

As part of EirGrid and SONI’s new strategy development process, we held executive level meetings with 35 organisations. These ranged across the spectrum of stakeholders in Ireland and Northern Ireland.

In Ireland, this included ESB, the National Advisory Committee, Chambers Ireland, the Sustainable Energy Authority of Ireland, the European Commission and IBEC. In Northern Ireland, we sought the views and insights of NIE Networks, the Ulster Farmers Union, the Northern Ireland business community, the energy industry and Consumer Council Northern Ireland.

Another key event of the year from a stakeholder perspective was SONI’s engagement with the Stakeholder Expert Challenge Group.

This group was established by the Utility Regulator in Northern Ireland as part of the SONI Price Control process.

This group was made up of independent stakeholders who have in-depth industry experience and knowledge of the Northern Irish electricity sector. This was an important milestone in the commencement of engagement on the next Price Control period. It also provided a good opportunity for SONI to set out clearly where it expects to go over the next five year period.

EirGrid also welcomed the creation by the CRU of the Networks Stakeholder Engagement Evaluation Panel.

This is composed of CRU staff, industry and wider stakeholders. The panel were tasked with assessing and scoring the network operators.

The aim was to assess the quality, implementation and effectiveness of their stakeholder engagement strategies. EirGrid was pleased to be awarded a score of 7.14 out of a possible 10 by the Panel for its activities in 2018.

We also welcomed the feedback of the panel on potential areas of focus into the future. As continuous improvement is a principle that underpins all our work we are striving to attain a higher score in 2019. 

We continued to grow our relationships with the business community. This helps us better understand the challenges they face and assists us in planning for future electricity use. In Northern Ireland, we engaged with the Confederation of British Industry, the Institute of Directors, NI Chamber, the Federation of Small Businesses, Retail NI and Londonderry Chamber.

In Ireland we engaged with the IDA, IBEC, the Electricity Association of Ireland, Chambers Ireland and many of the local chambers around the country.

Being a responsible business

Business in the community

In 2019, EirGrid was once again very involved with the Business in the Community Ireland Leaders’ Group on Sustainability.

EirGrid co-chairs the Low Carbon Economy sub-group with Gas Networks Ireland. This Group was responsible for developing the ‘Low Carbon Pledge’.

This pledge commits companies to halve their greenhouse gas emissions by 2030. EirGrid was proud to sign this pledge in 2018, and the first collective progress report was published in June 2019.

Also in 2019, EirGrid achieved the Business Working Responsibly Mark for the fourth time. This is an external validation that we prioritise corporate social responsibility and sustainability. Most importantly, this achievement was a team effort. People all across the business played their part to input into the submission, gather evidence, and undergo the audit.

Our CSR pledges

EirGrid Group is committed to being a socially responsible business. 2019 was the second year of our corporate social responsibility strategy. The strategy is based on five pledges for excellence. Activities under each pledge this year included:

Principles

We added sustainability as a core CSR focus area. This sits alongside education and community infrastructure.

Power

We developed an information video to mark the end of the ‘Power Off and Save’ programme in late 2018. This pilot programme took place across Ireland between 2016 and 2018. It educated consumers on the options that EirGrid uses to manage the grid, and rewarded them for reducing their energy use at times of high demand.

Preservation

EirGrid Group signed the Marine Grid Declaration. The Declaration pledges to develop marine projects in line with principles of nature conservation and early stakeholder engagement. 

Positivity 

We launched ‘Give Time, Get Time’ a competition for staff in SONI and EirGrid to win paid days’ volunteering with a charity of their choice.

People

Our diversity programme aims to ensure that we attract and retain a diverse range of talent across all of our businesses.

We are particularly focused on improving gender diversity across the group and at all levels. We support this aim with several initiatives. These include partnering with Professional Women’s Network Dublin, our graduate entry programmes and our development and training schemes. We also ran related events on International Women’s Day and carried out a social media campaign highlighting our key female talent.

"Accepting new overhead transmission lines can be a big ask for nearby communities. That’s why on these projects we set up an EirGrid community support fund. They recognise the local knowledge, support and co-operation that we depend on.

"Recently, EirGrid developed a new substation and some connecting overhead lines at Kilmorna in North Kerry. To thank the local community for their input and support on this project, we established the Knockanure-Duagh fund, which was worth €70,500.

"This was the first Community Fund I worked on. We ran this fund in partnership with Kerry County Council. We asked the local communities to identify projects that could use this fund.

"We want to give grants so they benefit as much of the community as possible - so we looked for community education projects, or plans for local amenities. There were applications for nearly double the total fund amount, so the independent assessment team had to choose carefully.

"We announced the successful projects at an event in Knockanure Community Centre in October 2018. It was great to be back to share the good news with the community.

"In total, this fund awarded grants to 13 projects. They ranged from a public walkway around the pitch in Duagh GAA Club, to a community garden in Scoil Chorp Chríost.

"We also funded some disabled parking spaces at the Knockanure Community Centre. I got to see the workers completing them when we went down with our giant cheques for the launch!

"It’s been one year since these grants, so now we’re getting updates from the groups we funded. It’s really satisfying to see what a wide and positive impact this fund has made."

- Derval O’Brien, Corporate Social Responsibility Programme Manager

Watch the video below or click here.

This year we refreshed our staff recognition programme ‘Going the Extra Mile’. We expanded the programme to include more categories of work across the Group.

Staff members nominate individuals or teams who exemplify any one of our values and put them forward for recognition.

At EirGrid Group, we place significant emphasis on the development of our people.

As a result, we run our “EirSkills” staff and leadership development programmes every year. 343 team members participated in a training programme this year.

We continually refine and improve the training and development programmes we offer. This ensures  the interventions align with  our strategy and meet the needs of our people.

This year we delivered a new programme for our customer-facing staff members. Titled ‘Managing Community Relations’, this is a highly interactive and practical course.

Core to the delivery of the EirGrid Group strategy is an engaged workforce. We have a busy annual calendar of events. These include International Women’s Day celebrations, ‘Going the Extra Mile awards’, group induction programmes and sports & social events.

In September 2019, we held a series of “Wellness Week” initiatives with the emphasis on physical and mental well-being. Staff engaged in workshops, speaker events, fitness classes and health checks.

The highlight of the week was an on-site spinning challenge for all levels of ability - where many in EirGrid and SONI donned their Lycra and fitness wear for the day!

We are embracing digitalisation through the use of social media and the internet. We use these channels to enhance our corporate brand as an employer of choice and to attract top talent.

We have introduced the use of technology-driven assessment centres in graduate recruitment. This has both reduced our environmental impact and increased our efficiency. Over the next two years, we will seek to pilot this process in our wider recruitment drives.

This year we welcomed a large intake of graduates in September. They have been deployed across the group through our diverse and engaging graduate programme.

Strategy development

This year we placed a particular focus on staff engagement for the Group 2020-25 Strategy. We sought out feedback and insights from individuals across the group in a process that saw many staff contributing to the strategy. We also conducted research projects on information technology and also on culture. We did this to understand the key trends and their potential strategic impact for EirGrid and SONI.

We also held a series of semi-structured interviews. These were held with other transmission systems operators, technology companies and Irish semi-states.

We also engaged and informed staff on how the strategy development was progressing throughout the year. The strategy launch in September recognised staff contributions towards building the strategy. It also generated considerable excitement about the opportunities ahead.

Information Technology

A suite of highly complex, interdependent IT systems underpin our core functions. The performance of these systems is essential to help our people achieve our strategic goals.

To assess the effectiveness of our critical systems, we measure their availability. The energy management system and the newly integrated Single Electricity Market systems held a 99%+ availability in 2019.

The focus of 2019 was in transitioning the market systems to normal operations. This followed the integration of the Single Electricity Market with wider European energy markets on October 1st 2018.

We improved our service capability in several ways. This included the creation of a service catalogue, assigning service ownership, and reviewing our service management processes. We also moved to operate a 24x7 on-site IT service to support the new market.

We also developed an innovative IT data visualisation tool. This tool enables data exploration and advanced analytics, and has proved very useful in analysing price spikes. It also automates the creation of a number of reports relating to the operation of the Single Electricity Market.