Gas Demand down three per cent in the first half of 2024
Overall gas demand decreased by three per cent in the first half of 2024 when compared to the first half of 2023, Gas Networks Ireland’s June Gas Demand Report has found. Gas was the largest contributor to electricity generation in the same period, generating 43 per cent of electricity in comparison to a total of 36 per cent generated by wind. At times during the first half of 2024, gas powered up to 83 per cent of the country’s electricity, and never dropped below 10 per cent 1.
In June specifically, overall gas demand decreased by 17 per cent month-on-month from May and 8 per cent year-on-year compared to June 2023. Gas was the largest contributor to electricity generation during the month, generating 47 per cent, compared to 28 per cent for wind. At times during the month, gas powered up to 83 per cent of the country’s electricity, and never dropped below 15 per cent 1.
Gas Networks Ireland’s Director of Strategy and Regulation, Edwina Nyhan said:
“While June saw a decrease in gas demand, these latest figures round out the first half of the year that was characterised by strong gas demand overall, with gas’s contribution to electricity generation exceeding that of any other energy source, including wind.
The figures demonstrate that the role of the gas network in the energy system is changing. The network is increasingly needed to provide resilience and security of supply as the level of renewables in the wider energy system increase, and our network is critical to ensuring that wind is backed up when it isn’t blowing.
The two energy sources are shown in our report to be complementing each other well. Wind’s contribution to the grid peaked at 81 per cent during the first half of 2024 but given the variable nature of weather dependent renewable energy sources, there were also times when the wind supply dropped completely and contributed less than 1 per cent of electricity generation. During these times, gas served as an essential back-up.”
June sectoral gas demand:
Sectoral demand for gas decreased month-on-month from May in education (-41pc), office (-21pc); retail (-15pc) and manufacturing (-33pc). By contrast, sectoral demand increased year-on-year from June 2023 in the construction (+20pc), education (+32pc), leisure & sport (+26pc) office (+84pc) and hotels (+14pc) sectors.
CNG demand increased by approximately 35 per cent year-on-year and 7 per cent month-on-month. It is the 18th consecutive month in which a year-on-year increase in CNG demand has been recorded.
Ms. Nyhan commented:
“Sectoral gas demand remained strong in June, and we are particularly encouraged by the continued growth in demand for bio-CNG. The growth in demand for this cleaner burning fuel has been underscored by significant corporate investments, such as the opening of Ireland’s first dedicated BioCNG refuelling self-service station at Flogas’s forecourt in St Margarets in Dublin last month, and Tesco Ireland’s addition of 50 biomethane trucks to its fleet last week.”
Gas Networks Ireland advances towards a Net Zero Carbon Network
June also saw Gas Networks Ireland unveil its ambitious Pathway to a Net Zero Carbon Network, outlining how the national gas network can transport 100 per cent renewable gas by 2045. This pathway details the journey towards a repurposed, resized, and fully decarbonised gas network by 2045, ensuring a secure energy supply, while supporting Ireland's climate and energy goals.
As it advances along this pathway, Gas Networks Ireland is inviting expressions of interest from current and prospective biomethane producers to supply biomethane to its new Central Grid Injection (CGI) facility in Mitchelstown, Co. Cork. Interested parties should submit their expressions of interest by close of business on Friday, July 12th at www.gasnetworks.ie/mitchelstown-cgi.
Ms. Nyhan commented:
"The transformation of Ireland's gas network will play a crucial role in achieving the country's climate goals, while safeguarding energy security and supporting economic growth. Our strategy involves transforming our network to exclusively transport renewable gas, while continuing to ensure a dependable energy supply within a more integrated energy system. In line with our long-term objectives, we are pleased to initiate capacity booking for the Mitchelstown CGI facility, marking a significant milestone for Ireland's emerging biomethane sector."
1 In a 15 minute resolution