Toddy O'Sullivan
Question:15 Mr. T. O'Sullivan asked the Minister for Energy if he has any plans to encourage the ESB to increase the use of hydro-electric generation; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Hydro-Electric Generation.
The potential for significant additional use of hydro power in Ireland is limited. The fact must be faced that most of the best sites have already been harnessed. The ESB currently have 512 MW, including 292 MW of pumped storage of installed hydro-electric capacity. This represents 13 per cent of ESB's total installed capacity. It is estimated that developed capacity represents over 70 per cent of the total technically feasible hydro capacity in the country. Development of the remaining sites will, generally speaking, be more difficult and costly than in the past and will depend on economic and other consideration such as concern for the environment.
Under the EC Valoren Programme, the ESB recently built a small hydro scheme at Coomhola, near Bantry, County Cork. This plant, which is currently being commissioned, has an output of 750 kw.
Will the Minister agree that it is desirable to make every effort to increase the capacity of hydro-electric generation? I have noted that the Minister told us that some of the prime sites have been taken up but the ESB should make a greater effort to generate electricity from hydro-electric schemes. They should not depend on oil and coal burning stations. Will the Minister agree that it is desirable, from the environmental point of view, that the board should adopt such a policy?
I agree that it would be desirable to achieve the construction of some additional hydro-electric stations. We submitted proposals for EC grant aid under the Valoren Programme for ten such schemes. On the environmental aspect, I should like to tell the Deputy that ironically it has proved to be an obstacle in that it has been impossible in a number of cases to obtain planning permission for hydro-electric proposals. There were serious objections on amenity grounds to the construction of hydro-electric stations in the proposed locations. Those proposals have had to be dropped. Given that the best sites have been developed further development in this regard will have to concentrate on small or very small units, micro hydros.
The current relatively low level of energy prices, coupled with high capital costs will make many of those sites unacceptably costly to develop at this time. Most of the sites have already been logged and assessed in the Department's study carried out in 1985. Their possible development will be kept under review but the planning obstacle has brought to an end planning on a substantial number of them. The possibility of a grant allocation from the EC has been changed because of those difficulties.
Will the Minister not agree that the nub of the problem for private hydro and other alternative energy uses has been the buy-back policy operated by the ESB under which they only give fuel replacement pricing? Will the Minister agree that in order to encourage the development of these renewable sources there has to be a change in that policy?
The buy-back policy is a matter which the owners of the private hydro-electric stations have been raising with the Department. They have referred to the contracts they have with the ESB and I am having that matter examined very carefully. I hope to be able to make some decisions in the near future. The best proposal is for the owners to renogotiate their contracts on a one-to-one basis. In some cases there may be a justification for an increase in the price but in other cases there may not. I am anxious to have an increase in the volume of electricity produced by various renewable energy schemes and a hydro-electric scheme is one of them. However, the number of suitable sites is limited and the cost factor is a major deterrent. One has to bear in mind that at present the ESB are, happily, in a position to produce electricity at a low cost. That may not always be the case but the price structure at present operates against the economics of hydro-electric stations.
Will the Minister agree that some of the schemes in operation have created wonderful amenities for some areas? I am referring to the Lee Valley which has one of the best amenity schemes in the country. A massive lake was created for boating and fishing there. Will the Minister accept that there is another side to the coin?
Yes, and I am sure the responsible planning authorities take those factors into consideration before arriving at their decision.