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Dáil Éireann debate -
Thursday, 7 Jul 1983

Vol. 344 No. 9

Written Answers. - ESB Generating Capacity.

357.

asked the Minister for the Industry and Energy whether he is satisfied that the excess generating capcity of the ESB over existing demand is justified; and if he will make a statement. on the matter.

I am concerned that there is overcapacity and that this may not be taken up increased demand for some time. The contribution which this excess capacity makes to the present high price of electricity is also a matter of serious concern to me. This factor was one of the reasons why I recently announced the established of an inquiry into electricity prices.

While the inquiry will propose its own detailed terms of reference I would envisage that the excess generating capacity of the ESB will be one of the areas which it will examine. The inquiry will make a report to me within six months of its commencement.

In relation to new capacity, I am at present examining the case for continuing or deferring part of the 900 Megawatt station which is being constructed at Moneypoint, County Clare.

The ESB itself is taking steps to reduce its excess capacity. By the end of this year the board will have decommissioned over 600 MW of old inefficient oil fired plant.

I should point out that in addition to the generating required to meet peak demand, every electricity utility must have additional capacity in order to provide for sudden breakdowns and for maintenance of plant. The level of this necessary additional plant can vary from one utility to another depending on interconnection with other utilities, size of individual stations, size of electricity system etc. It is only when the level of necssary additional plant has been determined that the excess capacity can be quantified. I would hope that the prices inquiry will be able to propose a norm for the ESB's necessary additional capacity.

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