It will only commit myself to a further expenditure of energy and certain officials of mine to an expenditure of time and energy. I have spoken of the experts in connection with this scheme, and I think it only right that I should say that, being entirely inexpert in the matter and being very much in the dark as to what particular type of expert judgment should be brought to bear on this report, I consider myself extremely lucky in the four who were finally selected and whose judgment is in part before this House. The choice was governed by a variety of conditions; the countries from which experts were to be chosen had first to be decided, and some investigation made as to where experts were likely to be found. With regard to the four gentlemen who actually did pass their judgment on this scheme I doubt if so much talent of a technical type has been brought to bear upon any proposal in this country for years as was brought to bear upon the proposition put forward by Messrs. Siemens Schuckert. Yet, to a certain extent the experts selected themselves. When you had before you the chance of securing the main director of the whole Norwegian State Electricity system, and the second in command of the whole Swedish State Electricity system, and when a comparison was made between these two countries and Ireland, and when the state of development in either of these two countries, at a not very late period in their history was contrasted with what exists here to-day, it was almost essential and automatic that the choice of Director Borgquist and Director Norberg-Schulz should be made. When referring to Director Borgquist of the Swedish system I desire to express my own appreciation, an appreciation in which, I am sure, the House will join, of the courtesy of the Swedish Government, through their Legation in London, in allowing Director Borgquist to be absent from his own State work in order to carry out expert judgment of this scheme.
I have mentioned the two Directors of the State systems first, because, as I say, they almost automatically selected themselves.
That does not mean that I am in any way disappointed or less appreciative of the work done by Professor Rohn and Professor Meyer-Peter, the two Swiss experts who joined in presenting the report on this scheme. When the technical experts of Switzerland fell for consideration, the names of these two professors also came to the forefront at once. So that having decided that Switzerland was a country the electrical development of which was such as to make almost necessary the selection of a Swiss expert for technical details such as this, it was again almost automatic that the names of Professor Rohn and Professor Meyer-Peter should be brought prominently before those who were to make the selection.
With regard to the actual work done by those four in combination, I, being inexpert in these matters, do not believe that I can fully appreciate the tremendous task that it must have been to examine, in a very intensive way and over a relatively short period, a scheme of such magnitude and set out in such comprehensive detail as the Siemens-Schuckert scheme was set out. I had contact with the four experts while they were in Dublin, and with one of them in Zurich, and I had a certain opportunity of observing their work. It is, of course, obvious that I am not in a position properly to evaluate what they have done, but there were things which were made clear to even an amateur's view, the application, the diligence, and the enthusiasm which they showed about their work, the care which they took over it, the details into which they went, the fact that they were able to, and that they actually did draw themselves away from their own work and spend a certain time in Ireland on the scheme, added to the amount of time which they gave to it while they were in their own homes, all this makes it quite clear that there could not possibly be a more conscientious and diligent piece of work than was performed by these four experts. I need say nothing of the firm of Messrs. Siemens Schuckert; their report, when published in detail and submitted to the criticisms of this House, acting upon various criticisms passed by the experts, will firmly establish a reputation here which has been very definitely established elsewhere, in every country outside of Ireland.
I have briefly referred to Irish contact with the scheme in the person of Mr. Chaloner Smith, and I would like to refer to that again, because while I have found myself subjected to criticism for not appointing Irish experts to supervise a scheme of this magnitude, and while that criticism may still be pressed, I may here state, without any hypocrisy, that it gave me the greatest pleasure to hear the comments of those of the Siemens Schuckert firm who were engaged on the preparation of the Report on the Shannon upon the careful and conscientious work which Mr. Chaloner Smith had done, outside of office hours and of his official duties, over a period of years, done with such technical accuracy and in such a scientific method that the basis of the scheme was ready for the Siemens Schuckert people when first they arrived to prepare their scheme.
That was one Irish point of contact with it. There was another. It gives me considerable pride in the University in which I graduated to find that it was a young Irish graduate of that University who, being in the employment of Messrs. Siemens-Schuckert, first thought of and followed with enthusiasm this project of the development of the River Shannon. It is possibly a year since this project of the utilisation of the power of the River Shannon for the country's needs first came clearly before the mind of Dr. McLoughlin, and over that period, while the scheme was part forming and while his attention was directed to other events, he showed so much energy and enthusiasm in getting this particular project brought to a head that he did finally succeed in impressing his point of view upon the directors of Siemens Schuckert firm and upon the Cabinet of the Irish Government. It does seem to me to be a matter worthy of comment that in a country in which electrical engineers have so little chance of being properly developed, there was discovered, at the proper time, a young graduate of the National University who, in a distant country, could conceive the idea of this, could interest the great firm of Siemens Schuckert in it, and could, by attention to details that were within his own province, help to get prepared a scheme which has secured the approval of these experts, the approval which has been in part put before you this evening. I consider that although Irishmen might have been to a certain extent removed from advising on the details of this project, there is, at any rate, a certain amount of pride to be taken from the fact that in the persons of Mr. Chaloner Smith and Dr. McLoughlin there was to some degree Irish contact with this great scheme.
I have circulated a document containing particulars of the scheme. The document is as follows:—
The fundamentals of the problem of electrification for Ireland are discussed in the Introduction and Chapters I, and II. of this Report. Chapter I contains the results of the examination by the experts of the energy requirements; Chapter V. contains detailed particulars on this point. Chapter II. deals with the Hydraulic and Geological conditions of the Shannon river. In Chapter III., entitled "Water Economy Plan," the time relation of water quantity to energy demand is examined in accordance with the actual and latent requirements in energy. Hereby the size of storage is settled. Chapters IV. and VI. deal with the projected constructional works, the machine and electrical plant, the judgment of the experts thereon, and lay down the charges and extensions which they recommend. The modifications proposed by the experts, in accordance with the White Paper of the 24th and 29th February, 1924, have necessitated further investigation in the Shannon area as also further researches and estimates by Messrs Siemens Schuckert. The results of these modifications are approved by the experts and will be handed by the firm through the experts to the Government in the shortest possible time. Chapter VII. deals with calculations relating to the economics of the scheme, the costings, and with the works organisation, as also with the production costs of electricity and the probable returns on capital invested. In Chapter VIII, using as a basis the material to hand, there is an examination of the further possibilities of developing energy in the Free State. Hereunder the results of the above-mentioned studies are put together.
The experts reckon as a result of the examination that the requirements in electrical energy in the Free State at the end of roughly two to three years from the coming into working of a national electrification supply may be estimated at about 150 million units (k. Wh.), measured at the outgoing terminals in a centralised power station. These requirements calculated per head of the population lie below the world average. As soon as electrical energy is available at cheap rates based on a sound economy the consumption will in a few years reach the above-mentioned level. A far-seeing commercial management of the whole electrification plant has to aim, therefore, at ensuring that the advantages and numerous uses of electrical energy in household, industrial and agricultural spheres shall become known to everybody.
Electrical energy can in the main be won in two ways in Ireland, either through numerous small local stations, each striving independently to deal with local conditions as well as possible, or through one or more concentrated large plants which, with a wide-spread transmission system, distribute electricity over the whole country. Such concentrated plants are to be preferred, as they permit of a much better compensating system in the requirements of electrical energy and allow current to be supplied at lower prices. The experts advise in favour of the immediate erection of one centralised station, capable of extension when necessary to the full extent of the available power, and which is eventually to be combined with one or more additional large power stations.
The experts have established as a result of their investigations that in the first development stage a centralised water power station is to be preferred to a fuel-burning station, as the existing available water power in Ireland permits of such cheap development as to allow of successful competition with fuel-burning stations. There is a further consideration in favour of water power of importance to the State— which presumably will take over electricity supply—namely, that of independence in its electricity supply, even if coal eventually becomes cheaper. It may be here remarked that even though Ireland has in the matter of water power only small heads, yet there seldom exists in other lands so good coincidence in point of time between water quantities and energy demand.
At present three proposals for the development of water power are in the foreground. There is that which the experts have, in the first place, to examine, Messrs. Siemens Schuckert Shannon scheme, further, the Liffey schemes, and, finally, the Liffey-Shannon combination.
The experts are aware that the Free State has not a very large quantity of water power which can be developed. Accordingly in setting out a plan for energy a pre-eminently suitable line of power development must be followed. Above all no partial exploitation of a water power ought to be carried out which makes a full development later impossible from an economic view point. On the other hand, for the start no plant should be built which cannot be adapted to growing demand.
These two fundamental view-points and consideration of the existing requirements have led the experts to declare that a partial development of the Shannon is the most suitable first step which the Free State can take in the way of electrification. The first development stage which the experts suggest, and which corresponds to a requirement of about 150 million units measured at the busbars of the power house is far from the full exploitation of the Siemens Schuckert partial development. Combined with existing steam stations which would be called on to supply an average of ten million units per year additional energy, the partial development is capable of delivering about 225 million units per year.
The proposed first development stage of the Shannon River in no way prevents its full development. All further development can be carried out roughly within the limits of what it would cost if it were carried out coincident with the partial development. Some work necessary for further development of the river must be carried out coincident with the partial development, as it would later be more costly or would disturb the running of the station. The tail race, the machine house, and the storage in the lakes would be further developed by the simple process of being somewhat enlarged. The head race would remain unchanged. The storage development can be carried out in a succession of stages. First of all Lough Derg would be regulated without increasing its level, then the level of Lough Ree would be increased, after this Lough Allen and lastly Lough Derg. During a dry year and without using any additional sources of energy there could accordingly be delivered the year's requirements for general supply as outlined in the full development, about 275 million units. By a moderate addition of steam energy the afore-mentioned units could be considerably increased by an average of about 30 to 40 per cent a year.
The experts declare themselves distinctly in favour of this one step system of partial development as against the more expensive and in general less suitable system of development in a number of steps which necessitates various separate weir plants and various separate machine houses. The Siemens Schuckert partial development, in the reduced form suggested by the experts, will, as already mentioned, deliver about 150 million units, and this is the smallest plant with which the electrification of the Free State should be begun to-day, if a supply of energy for the use of the whole country is the consideration.
In the opinion of the experts the Liffey River will also be developed later on, either during the further development of the Shannon or more probably after this, depending on how the consumption of electricity develops. The Liffey storage would in all probability make possible a valuable compensating system for the full development of the Shannon; nevertheless it will be necessary to examine if it would not be more advantageous to use the existing steam station, or eventually a new steam station for energy supply at low water periods or for covering peak loads.
In about twenty years the fully developed Shannon, together with the Liffey plant, and the steam stations would probably build an advantageous source of electricity supply for the Free State.
To develop the Liffey at the present time is not advisable, because it is too small, because it can supply only the needs of Dublin, and because its output capacity would be very quickly swallowed up, while four-fifths of the State would have no share in the advantages of electricity supply. The experts are of the opinion that the current could be delivered cheaper from the Shannon, to the largest consumer, that is Dublin, than it would from the Liffey.
The experts wish to draw special attention to an important economic point which indirectly is connected with the carrying out of the Shannon scheme.
Flow conditions in the lakes and in the river will be regulated in providing for storage—in the first partial development at Lough Derg, and on the Shannon from Lough Derg to Meelick; later by the full development at Lough Ree, Lough Allen, and from Meeling to Lough Ree. This regulation of the river forms the fundamental basis for a drainage of the Shannon area. The experts recommend the Government to have the drainage of this area carried out in conjunction with work which is required for the power scheme. This would mean, if desired, the carrying out, earlier than otherwise, of a portion of the embankments necessary for the further development of the river.
The surplus energy available in winter would make possible in the most suitable fashion the running of seasonal industries, whereby a limited number of workers engaged in summer in agriculture would find employment in winter.
During the period of the construction of the first partial development, about 2,500 workers would be employed on the power development work proper for three years. About 300 further workers would be necessary for the building of the distribution transmission lines. Lastly, the drainage plan proposed in conjunction with it would employ in addition numerous workers.
Navigation conditions between Lough Derg and the Harbour of Limerick would be very much improved. In particular the ten locks on this stretch would be replaced by one single ships hoist.
For protecting the fisheries all possible precautions are provided, in particular, fish passes by the weir at O'Brien's Bridge, as also at the Turbine House.
The constructional cost of the first partial development (including the distributing transmission system, works out according to the estimates of Messrs. Siemens Schuckert, and taking into consideration the modifications of the experts at about £5,200,000—providing for 63,000 installed kw. The cost includes the complete distributing transmission system bringing electricity to the vast majority of towns and villages of over 500 population, and also the preparatory work incidental to the full development. The cost for the eventual final development works out at about £7,870,000, providing for 126,000 kw. installed. The average cost of electrical energy at the power station will work out as follows:—
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For the first development:
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d. per unit.
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For the consumption of about 150 million units
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0.42
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For the consumption of 215 million units derived from water (neglecting the 10 million units to be provided from steam stations)
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0.30
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For the further development:
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With consumption of about 237 million units
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0.42
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For the final development:
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With consumption of about 275 million units
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0.36
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With consumption of 400 million units derived from water (neglecting the additional energy from steam plant)
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0.25
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The experts' investigations have shown that electricity can be delivered in bulk to towns, villages, etc., at a price which is appreciably lower than that at which it could be developed in modern individual town plants.
Because of the different costs of distribution the prices of electricity must be varied according to the amount of energy consumed. For the greatest consumer (Dublin) the cost of current would not be more than 0.53d. per unit at the place of delivery.
Owing to the relatively high costs of distribution due to the smaller degree to which the distribution system is exploited, the price of current for the medium and smaller towns will be appreciably higher. The experts are, however, of the opinion that the scheme will allow of energy being supplied for these consumers at an economically justifiable price which is appreciably below the cost at which energy may be developed in a single town plant. The experts expect that payment out of revenue of interest on capital to the full extent of 5½ per cent. after payment of all working expenses and sinking fund will not be practicable until about the fifth year after the coming into operation of the system. In comparison with similar important undertakings abroad which provide for the community at large, these are thoroughly normal conditions. At the end of about five years a profit would be obtainable after full interest had been paid on the capital. 15 per cent. addition to the cost is included in the above-mentioned capital of £5,200,000 and £7,870,000 respectively to cover the interest during the period of construction as also the insufficiency in interest in the first four working years. This addition should prove approximately right.
The experts hope that the State eventually, in conjunction with the towns, will succeed in carrying through the electrification of the Free State, beginning with the economically most favourable possibility, the partial development of the Shannon River as proposed by Messrs. Siemens Schuckert and as modified by the experts.
The estimates of Messrs. Siemens Schuckert fulfil the conditions laid down in the White Paper.
The price of the hydro-electric energy produced lies thoroughly within the limits of that paid in countries which are better developed in the matter of electricity supply.
If the authorities who supply electricity to the consumer endeavour to carry out a sound supply price policy, the consumption will increase considerably and the price of electricity to the consumer will work out about as favourable, for example, as in Switzerland, a country which has experienced an enormous development in the spread of electricity.
The disposition and the carrying through of the electrification plan will require from the State the closest attention.
