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Electricity Generation.

Dáil Éireann Debate, Tuesday - 8 February 2005

Tuesday, 8 February 2005

Questions (125)

Michael D. Higgins

Question:

138 Mr. M. Higgins asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the latest ESB generation adequacy report which states that there may be a significant shortage of power stations in years ahead if the ESB and other electricity companies do not improve the reliability of their plants; the consequences he foresees should such a situation arise; if there are any measures he can take to prevent this; and if he will make a statement on the matter. [3581/05]

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Written answers

I am aware of the recently published fourth generation adequacy report 2005-2011, published by the transmission system operator, as referred to by the Deputy. The findings of this statutory annual report inform and augment policy developments in this area. The report looks at different scenarios to identify any potential gap between generating capacity and demand and consequences arising. The reliability of the generation plant is the key variable which distinguishes these scenarios.

The CER, in conjunction with the ESB, ESB national grid and my Department, is assessing the generation adequacy report findings to consider how any potential shortfalls in generation capacity between now and 2009 can be mitigated. An ESB plant productivity programme is already in place to enhance its availability. To ensure that the programme delivers, the CER will impose penalties for failure to deliver on a progressive basis. In the event that the ESB cannot meet availability targets, the CER will explore the feasibility of extending the short-term capacity measures already in place to meet peak demand. These include the use of temporary peaking plant and increased use of the North-South interconnector.

In the medium term, significant committed new thermal generation capacity of up to 532MW is scheduled to be brought on stream during late 2005 and 2006 by Aughinish Alumina Limited and Tynagh Energy Limited. In addition, Viridian Huntstown Power Limited, has announced its intention to proceed with a second new 400MW generating station at Huntstown. Plans are in train to construct a second North-South interconnector. In addition, the Government has given approval to proceed with the development of two 500MW electricity interconnectors between Ireland and Wales. When operational, these interconnectors will further enhance security of electricity supply. With the development of an all-island energy market capacity benefits should also accrue.

In forthcoming regulations to implement the electricity directive, 2003/54/EC, the statutory role of monitoring security of electricity supply will be formally assigned to the CER. The CER will be empowered to take any measures necessary to protect security of supply. In particular, it can host a competition to acquire the necessary generation or it can direct the TSO, ESB or any licensed undertaking to undertake any arrangements that the CER considers necessary to protect security of supply.

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