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Dáil Éireann debate -
Wednesday, 24 Nov 1999

Vol. 511 No. 4

Adjournment Debate. - Electricity Generation.

I propose to share my time with Deputy Enright. The publication of the International Energy Agency Report on Ireland last month raises serious concerns about the long-term future of peat generated electricity in the midlands. The report recommends the closure of the four peat powered stations, namely, Ferbane, Shannonbridge and Rhode in Offaly, and the Lanesboro power station in County Longford. It also calls on the Government to confirm a programme to phase out all existing peat-fired power plants and to publish a timetable to give effect to the programme. We are all aware that the future of the Ferbane plant may be short-lived and hangs in the balance at present. The report also recommends that no future peat stations be commissioned.

Each station supports thousands of jobs directly and indirectly in the midlands region. This area has been losing jobs for years and there has been no new investment to replace these losses. Major job losses at these power stations and the related employment with Bord na Móna would devastate the rural economic fabric of Roscommon, Longford, Westmeath, Offaly and Laois and would destroy any prospects of improving the economic development of the midlands and western regions.

The IEA carries considerable weight within the energy sector and may form part of the Government's consideration on the future plans for peat generated electricity. Any such decision would lead to substantial losses at Bord na Móna, where the vast majority of employees are small farmers who are finding it extremely difficult to survive at present. This report, along with the plan by the Minister for Arts, Heritage, Gaeltacht and the Islands to restrict turf cutting and the new planning Bill by the Minister for the Environment and Local Government which will require turf cutters to seek planning permission, clearly shows the trend of the Government to cease all peat production on our bogs. The report also promotes the expansion of the use of gas. Bord Gáis recently announced a plan to lay a new pipeline across the country to Limerick and Galway, but whether the counties which will be devastated by the closure of these power stations are included has not been clarified. I urge the Minister to ensure that these counties are serviced by the new pipeline as this would have a major economic impact on the whole region.

Serious consideration should also be given to the conversion of these stations to gas fired electricity generation when the route of this new pipeline is being planned. The provision of gas and access to the new broad-band telecommunications infrastructure would dramatically reduce our economic over-reliance on electricity generation in the region. These developments would ensure towns such as Roscommon and Longford and towns in north Roscommon would have an opportunity to prosper as many other towns have done to date in the current economic climate. The Minister of State should clarify the position of peat generated electricity in Ireland and the position on converting these power stations to gas fired power stations, which would be of huge economic benefit to the region and would give people in the midlands access to the gas pipeline now being considered.

I am strongly opposed to the IEA report's recommendations. If they are implemented there will be a catastrophic effect on the livelihoods of thousands of workers in my constituency and in Galway, Roscommon and Longford. The Minister of State will be aware that the cost of refurbishing Ferbane power station is over £16.9 million, and in excess of £10 million has already been spent on refurbishment work. A boiler has been ordered and much of the work has been carried out. It is imperative that this work is completed.

It is imperative that Rhode, Shannonbridge and Lanesboro are also improved and modernised. There will have to be considerable investment. That is in the national and local interest, as it is important to have security of supply from our own resources. Regrettably, there has been no investment in these stations over the years, but the IEA report will have catastrophic effects on the ESB and Bord na Móna.

The Government cannot stand by and see these jobs lost. In the plans for new gas pipelines Offaly has been ignored. As Deputy Naughten said, we are anxious to have gas fired electricity in Offaly, Roscommon and Longford, given that plants are now powered by peat.

The recent review of the International Energy Agency is a valuable independent critical assessment of our overall current energy policy. General lessons can be learned from reviews of this nature and though the recommendations and findings of such reviews are not legally binding, they nevertheless provide us with a valuable yardstick against which we can assess our own strategy for the evolving energy sector.

The operation of the existing peat plants is the responsibility of the ESB and plans or proposals affecting the future of these plants are a matter for the board of ESB in the first instance in consultation, obviously, with Bord na Móna. The future of the peat plants operated by ESB was considered in the 1995 report of the Peat Review Group. That report laid out a programme of phased closure for the older, less efficient peat burning units together with a programme of refurbishment for other units, as well as recommending the construction of a new 120 megawatt peat plant to be located in the east midlands.

The refurbishment programme for the existing stations coupled with the commissioning of the new 120 megawatt station represents a long-term strategic approach to ensure the continued use of peat in electricity generation. It also maximises long-term employment in peat production and electricity generation in the midlands. In 1995 the then Minister signed a memorandum of understanding with the EU Commission on the provision of EU financial support for the new 120 megawatt peat plant currently under construction near Edenderry. One of the conditions of this agreement was the achievement of a reduction in carbon dioxide levels here through a programme of rehabilitation of cutaway bog and a programme of phased closure of the oldest and least efficient generation stations and selective refurbishment, with the latest technology, of some of the less old units. There is flexibility within this framework as to the plants and generation units to be retired or refurbished.

The commitments given in relation to peat stations are being complied with and some of the oldest units are no longer operational. The electricity sector in Ireland is due to be liberalised from February 2000 under the terms of the EU Electricity Directive, which allows a member state to make provision for the use of indigenous resources to meet up to 15% of its annual electricity requirements. The future of peat fired power stations also falls to be considered in the context of the development of a liberalised electricity market. Consideration is being given to the introduction of a scheme whereby peat fired stations may be given priority dispatch, in accordance with Article 8(4) of the EU Electricity Directive, by means of a public service obligation statutory instrument and the excess costs above the market price would be collected by means of a levy.

As such a scheme would constitute State aid, it would be necessary to have the approval of the EU Commission prior to its introduction. My Department is awaiting financial and other data from the ESB to support a notification of State aid for approval.

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