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Dáil Éireann díospóireacht -
Wednesday, 11 Jun 2003

Vol. 568 No. 2

Written Answers. - Electricity Generation.

Róisín Shortall

Ceist:

99 Ms Shortall asked the Minister for Communications, Marine and Natural Resources the steps he is taking to ensure the adequacy of the electricity supply having regard to warnings from EirGrid and other sources of electricity shortages by 2005, unless new power stations are built; the plans there are for the provision of additional power stations; and if he will make a statement on the matter. [15937/03]

The Commission for Energy Regulation, CER, is required, under section 9 of the Electricity Regulation Act 1999, to have regard to the need to secure that all reasonable demands for electricity by final customers are satisfied, in addition to promoting the continuity, security and quality of supplies of electricity. I have been advised by the CER of the need to obtain at least 300 MW of centrally dispatched, large-scale plant by 2005 in order to meet generation adequacy requirements. This projected capacity requirement has been identified in the most recent forecast statement, entitled Generation Adequacy Report 2003-2009, which was published by ESB National Grid in November 2002, in accordance with section 38 of the Electricity Regulation Act 1999.

The CER, in exercise of its responsibilities, announced on 20 December 2002 that, following extensive consultation and having examined a number of options, it was of the view that the most appropriate approach to securing additional capacity is to award a contract to one or more successful bidders, through a competitive process for the purchase of 300 MW – 400 MW of electricity. The CER is also of the view that the ESB, operating as the public electricity supplier, PES, is the best placed in the market to offer such a contract.

The CER announced on 23 May 2003 that it had received expressions of interest from seven generators interested in bidding into the competition it is running to facilitate the entry of new generation plant or plants into Ireland. The potential bidders, who have submitted a valid expression of interest, have received from the CER the tender documentation required in order to prepare their bids for the competition. Bidders will compete with one another for the contract or contracts on the basis of price, after having met a number of specified minimum technical, financial and regulatory requirements. According to the CER, the closing date for receipt of tenders is 5 September 2003 and the winner or winners is expected to be announced by the Commission on 20 October 2003.
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