Vol. 437 No. 1
7 Mr. Durkan asked the Minister for Transport, Energy and Communications whether the future energy requirements of the country are likely to be met within the context of the National Development Plan 1994-1999 in view of the current situation in respect of peat generated electricity in the midlands and projected capital investment in this area during the lifespan of the plan; and if he will make a statement on the matter.
Under the National Development Plan 1994-1999, it is proposed to provide EC Structural Funds to certain key projects in the energy sector as part of a policy of meeting Ireland's future energy needs.
The investments planned for the energy sector will cater for increased demand from the economy in general, secure improved efficiency in energy supply and consumption and result in a more cost-competitive supply infrastructure.
I recently received a proposal from Bord na Móna for the provision of a new 120MW peat-fired electricity generation station to be located in the east midlands region. The Government is committed to the continued use of peat for electricity generation, provided that the cost is not excessive. In 1992, peat constituted around 13 per cent of Ireland's power generation requirements.
If the requirements with regard to electricity and peat generated electricity were considered why is there a reference to the need for a feasibility study in the National Development Plan?
At the time of the publication of the National Development Plan a feasibility study was done and the commitment in the National Development Plan is subject to the Government being satisfied as to the feasibility of the project.
Surely an energy requirement should be determined before a commitment is incorporated in a plan? In view of that will the Minister say whether there has been an evaluation of energy requirements, with particular regard to peat generated energy and on what basis it is proposed to build a peat generating station in the midlands as there is one already there?
There is a need for new peat generating capacity in order to take up improved technology and efficiency which will make the generation of peat fired electricity a cost competitive fuel compared to fuels like coal and oil. In relation to energy policy and the national plan, detailed operational energy programmes must now be submitted to the Commission for their approval so that we can find out what money will go to what projects. Those discussions are continuing.
The question of the provision of peat fired electricity generation will be included in the operational programme. When all those issues are resolved we can examine this project, but not in isolation. It is timely that there should be a full review of the peat industry and its contribution to our energy policy. That is taking place at present and we must examine the general position before arriving at decisions. Failure to find further gas off our shores will mean that resource will be depleted by the end of the century, our only native resource then will be peat, if other resources are not found. From the point of view of security of supply, in devising an energy policy we should maximise the use of our native resources because it is economic to do so. That proposal will be included as part of our energy policy for the future.
Can the Minister give us a projected lifespan for such a plan given that the proposed east midlands plant will replace an older plant? Is it possible to say what the lifespan of the new plant will be? Also, what will its lifespan be in the context of the supply of peat given the finite nature of that resource? As the Minister said, other fuel sources are not available, will he accept that our overall energy consumption will have to be reduced unless he embarks on a programme of renewable energy instead of the finite resource of peat?
The lifespan of the envisaged plant is 30 years providing one million tonnes of peat per annum. I will address the question of the increased demand for electricity in reply to later questions, but the provision of a new plant to meet the increased demand is only one aspect of the matter. Of course, the demand must be met and I am at present seeking to provide for, at a minimum, a 75 megawatt capacity in renewable energy sources by 1997. Plans for that project are underway at present.
(Limerick East): Is the feasibility study available to the Minister? If so, does it indicate that the new techology envisaged will be cost competitive? Will the Minister also inform the House whether there will be a higher capacity from the new plant than from those he intends to close? Finally, will he confirm that the cost competitiveness of the new technology plant is based on a workforce of approximately 50 people?
The answer to the Deputy's first two questions is yes. In regard to his third question, the plant will be considered on its merits, but the design life of existing plans will be an important factor because, obviously, it cannot go on forever and neither can the resources to supply those plants. If the new technology provides improved and increased efficiency it would be more cost competitive to provide that type of operation in the long-term while at the same time providing for a phased position in regard to existing plants. The workforce in the plant will be approximately 70 people.
Did the Minister indicate he has access to the feasibility study?
I do.
How did the Minister quantify the requirements in the National Development Plan in which he proposed to hold a feasibility study which, in turn, would prove the energy requirements? Was that a calculated guess on his part or did he receive information by some other means?
I apologise if the Deputy is confused about the matter. The National Development Plan refers to the existence of a feasibility study subject to full Government consideration. We are satisfied it was a feasible option and indicated our support for it in principle. I am carrying out a general review of the industry at present so that we will not make decisions in isolation because of their impact in other areas.
