Vol. 530 No. 3
63 Mr. Durkan asked the Minister for Public Enterprise the proposals in regard to the long-term development of the electricity industry with particular reference to increasing generating capacity in line with requirements; and if she will make a statement on the matter. [3750/01]
As a result of the Electricity Regulation Act, 1999, sponsored by me, approximately 31% of the electricity market is now open to competition. This will rise to 40% in 2002 and to 100% in 2005. This means that any party can apply to the Commission for Electricity Regulation – CER – for the necessary authorisations to build new plant and/or licences to generate and to supply eligible customers.
The strong economic growth of recent years is reflected in high levels of growth in demand for electricity by all sectors of the economy. According to a report published by the CER, in conjunction with the ESB, entitled Generation Capacity Requirements to 2006, growth in demand for electricity is expected to average 4.4 % over the period 1998-2006. These levels of growth will require the provision of between 150 MW and 200 MW of additional capacity each year for the foreseeable future, by means of new plant or imports over the interconnector with Northern Ireland.
Extra tranches of power generation continue to be provided. In addition to the 160 MW unit which became operational at Poolbeg in April 2000, the new Fortum peat plant at Edenderry has in recent weeks added approximately 120 MW of capacity. On top of this, the ESB leased five 22 MW portable gas turbines in order to provide stand-by capacity at times of peak demand during winter 2000-01. The upgrading of the North-South electricity interconnector from 280 MW to 400 MW is proceeding according to plan and is on track for completion before the end of 2001. The 500 MW Moyle interconnector between Scotland and Northern Ireland is expected to come on stream around the second half of 2001, adding to overall system security.
In respect of next winter, 2001-02, the CER is taking active steps to ensure that portable stand-by capacity will be available as required similar to this year. A number of power producers have well developed plans to build new gas fired generating plants. One such facility of 400 MW is currently under construction and a second plant of approximately 340 MW will shortly commence construction. Both of these will provide significant additional tranches of generating capacity in 2002-03, thus obviating the need for portable stand-by capacity in Winter 2002-03.
