Brendan Tuohy is no fool. The chairman of EirGrid – the state-owned operator of the electricity network – spent his life in the upper echelons of the public service, including a seven-year stint as the secretary general of the Department of Communications, Energy and Natural Resources.
Between his time there and at EirGrid he knows better than most the almost pathological opposition in Ireland to large infrastructure projects. That opposition has now come home to roost as we struggle to meet the housing, transport and energy demands of our economy.
You would have to assume, on this basis, that he has better things to do with his time than float the idea of nuclear energy here unless he felt the issue was important. But he went out of his way last week to do just that.
Mr Tuohy made the point that we must consider it as an option to balance the intermittent nature of low-emission energy sources, such as wind and solar, on which we have hung our hat in terms of decarbonising the energy system.
“Serious consideration should be given on how to increase the range of options available to Ireland,” he said. “Even though some options may not be popular – for example, the use of nuclear energy – it is important they are given serious consideration."
He could also have added energy security as a reason to explore options. The reaction of the oil markets to Israel’s attack on Iran and its response has been remarkably sanguine to date, with prices up around four or five per cent. Most observers are of the view we won’t see a dramatic spike in prices of the sort that followed Russia’s invasion of Ukraine in 2022.
The working assumption seems to be that the conflict will not escalate markedly from the current exchange into something truly disruptive that would interfere with oil exports from Saudi Arabia and other large producers in the region.
The reasoning is that the United States will impose some level of restraint on Israel while Iran will also want to avoid a larger conflict given the weakness of its economy and the lack of regional allies.
Considering the fact we have some of the highest energy bills in Europe behind Germany and Denmark – although we are nearer the middle of the pack when purchasing power is taken into account – this will hopefully turn out to be the case.
[ Oil prices surge after Israel’s attack on IranOpens in new window ]
Either way, it is a reminder, if one was needed, that we have to get much better at building infrastructure. Energy infrastructure, in particular. The problems that are holding up offshore wind and other projects is the same litany of issues bedevilling the delivery of projects in housing and transport.
The apparent lack of emphasis put on tackling these problems by the Government implies a sort of capitulation after decades of failure. It was disheartening but not surprising to see Government leaders reverting to type this week at the National Economic Dialogue and trying to buy their way out of trouble.
The annual meeting with various lobby groups and representative organisations is seen at the starting point of the Budget pantomime in which the Government divides up the 10 per cent of its annual budget not already committed to keeping the national show on the road.
Spending the other 90 per cent – around €90 billion – is, effectively, the real challenge of government. However, dishing out the last €10 billion to compensate for dropping the ball in this regard is the bit that our elected representatives tend to focus their efforts on. You can’t really blame them as it’s also the bit that is most likely to get them votes.
Energy is a good example. Our failure to capitalise on renewables and seriously consider alternatives such as nuclear has left us heavily dependent on imported gas, the consequences of which became apparent following Russia’s invasion of Ukraine.
The Government response was to dish out energy credits in subsequent budgets to the tune of €1.25 billion. Minister for Finance Paschal Donohoe is keen to stop these credits from becoming a permanent budget-day fixture. However, his objective faces a significant head wind if conflicts in the Middle East impact oil prices in a significant way.
It’s easy to say that if Fine Gael had done a better job of sweating the big stuff on energy during it’s decade-and-a-half in power, it would not find itself trying to wean the electorate off energy credits. But at the same time, it is the truth. It also encapsulates the conflicting political impulses that explain why we are so bad at getting big projects done.
