Gas Demand Falls By 3% In The First Half Of 2024

Gas Networks Ireland's June Gas Demand Report indicates that overall gas demand fell by 3% in the first half of 2024 compared to the same period in 2023.

During the same period, gas was the primary source of electricity generation, accounting for 43 per cent compared to wind’s 36 per cent. In the first half of 2024, gas fuelled up to 83 per cent of the country's electricity and never fell below 10 per cent 1.

Specifically in June, gas demand decreased by 17 per cent from May and 8 per cent from June 2023. Gas was the leading electricity source for the month, generating 47 per cent of electricity, while wind contributed 28 per cent. Throughout June, gas provided 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."

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."

In June, Gas Networks Ireland revealed its ambitious Pathway to a Net Zero Carbon Network, outlining a plan to transition the national gas network to transport 100 per cent renewable gas by 2045. This roadmap describes the steps to repurpose, resize, and fully decarbonise the gas network, ensuring a secure energy supply while advancing Ireland's climate and energy objectives.

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."