Within the liberalised, competitive energy market, it is open to any person to apply for the necessary authorisations and permissions to construct a power generating station. Naturally, this would be a commercial decision for the individuals involved.
In the event that new generation capacity is necessary to ensure security of supply, Regulation 28 of S.I. 60 of 2005 provides that it is the responsibility of the Transmission System Operator to so advise the Commission for Energy Regulation (CER). The CER is then required to take such measures as it considers necessary to protect security of supply. Such measures may include securing, with my consent as Minister, the provision of new or additional generating capacity by competitive tender.
Under Section 16(1) of the Electricity Regulation Act, 1999, as amended by Regulation 13 of S.I. 60 of 2005, a person shall not construct or reconstruct a generating station unless the Commission for Energy Regulation has granted an authorisation to the person. Section 16(2) of the Electricity Regulation Act 1999 specifies that this applies also to ESB.
Section 18 of the Electricity Regulation Act, 1999 provides that the Minister for Communications, Marine and Natural Resources shall specify by order the criteria in accordance with which an application for an authorisation to construct or reconstruct a generating station may be determined by the Commission.
S.I. 309 of 1999 sets out these criteria. In summary, the criteria are: safety and security of the electricity system, efficient use of energy, compliance with grid or distribution code(s), application for relevant statutory consents, ability to construct / commission in specified timeframe, provision of specified ancillary services, fuel-switching capability, fitness of applicant (including financial capacity and technical skills), and ability to comply with Public Service Obligations.
In addition to the authorisation to construct a generating station from the CER, a proposed developer of a generating station must also obtain the necessary planning permissions and a grid connection offer from the Transmission System Operator.
The Aghada power generation site is owned by the ESB and, in accordance with section 2(1) of the Electricity (Supply) (Amendment) Act 1982, ESB would require prior Ministerial approval for any major capital expenditure proposed for that site, including the development of a new electricity generating station. No formal proposal has been received to date by the Minister from the Board in this regard.