I propose to take Questions Nos. 76, 152 and 260 together.
On 27 October last I met the chairman and chief executive officer of the ESB to discuss a range of issues including security of supply and the management of winter peak demand-supply balance. In summary, currently with some 5,563 mw of dispatchable capacity against an expected winter peak of 4,550 mw, the situation is tight but manageable.
The Commission for Energy Regulation, CER, monitors the security of electricity supply situation. Demand for electricity is currently forecast to grow at an annual rate of between 2.9% and 4.3% over the period 2004-10 necessitating additional generating capacity. The CER has initiated positive actions to redress postulated generation capacity shortfalls as forecast in the 2004-10 generation adequacy report by ESB national grid. Short-term measures put in place for this winter include the implementation by ESB National Grid of a demand side management programme, increased imports of 167 MW of electricity from Northern Ireland contracted on a priority basis and 208 MW of additional peaking capacity.
In response to the medium to long-term capacity deficit, two new independent plants successful in the CER's Capacity 2005 competition, generating up to 500 MW, are due to be commissioned by December 2005 and February 2006 and two new peat plants, with a combined capacity of 250 MW, are due to be commissioned by December 2004 and February 2005.
An ESB plant productivity programme is in place to enhance its availability from some 76% in 2003 to a target of 82% during 2004. To ensure that the programme delivers, the CER will impose penalties for failure to deliver on a progressive basis.
The ESB is also currently undertaking a significant networks investment programme, of some €4 billion up to 2007. This is aimed at bringing the transmission and distribution systems up to required international standards and meeting projected capacity demand requirements. The programme is being delivered within the planned timeframe and budget.
Further increments of capacity will be required by 2007. In this connection, Viridian Group PLC has recently announced its plans to construct a second 400 MW gas fired power plant at Huntstown, County Dublin. In addition, the Government has given approval to proceed with the development of two 500 MW interconnectors between Ireland and Wales. When operational, these interconnectors will further enhance security of electricity supply, as well as increased interconnection North-South for which I gave the go-ahead last week.
Early next month, the transmission system operator, TSO, will publish the generation adequacy report for 2005-11, in accordance with section 38 of the Electricity Regulation Act 1999. This report assesses the likely minimum generation capacity required to achieve an adequate supply and demand balance for electricity over a seven year time horizon. The findings of this report will inform and augment policy developments in this area going forward.
