Eirgrid sees big fall off in demand

DEMAND for electricity fell by 5.4% last year as the economy hit a rate of decline not seen since World War II, according to Eirgrid chief executive Dermot Byrne.

Speaking at the launch of the 2009 annual report, Mr Byrne said “apart from a small decline in 1980/81, such levels of demand reduction have only ever been experienced during World War II,” which was attributable to supply problems and not a lack of demand.

Up to 300 jobs will be generated as the country’s electricity network provider upgrades the system further, said Eirgrid chairwoman Bernie Gray.

Ms Gray expects to have her term as chairwoman extended. However, she would not comment on whether she would be offered another five-year term by Minister for Communications, Energy and Natural Resources Eamonn Ryan.

She said the jobs will be created sub-contracting work to be carried out as the network is upgraded.

Eirgrid is m million inter-connector with Wales expected to be operational in 2012.

Results for last year show electricity demand fell by 5.4% in the Republic and by 3.7% in the North. Despite the drop in consumption, demand in January and February hit a record high, due to the cold snap.

Mr Byrne said at the presentation of the group’s 2009 annual results that he expects modest pick-up this year overall as the economy improves.

This is the first time the company’s annual report includes activities of the Transmission System Operator business in the two parts of the country as well as the Single Electricity Market Operator.

It is projected that by 2020 40% of the country’s electricity will be generated by wind and much of the infrastructure to be built will be used to get electricity generated on the west coast to the east of the country.

Just 30 of the jobs will be created by Eirgrid.

The company said its operating profit for the year to September 2009 was €9.4m compared to €8.6m for the nine months to September 2008.

Revenue was €410m, compared to €282m for the nine month period.