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Dáil Éireann díospóireacht -
Thursday, 10 Dec 1998

Vol. 498 No. 3

Written Answers - Electricity Supply.

Bernard J. Durkan

Ceist:

15 Mr. Durkan asked the Minister for Public Enterprise the degree to which electricity supplies currently meet industrial, commercial and domestic needs; the degree by which this requirement has increased in the past five years; the degree to which she expects the need to increase in the next five years; the proposals, if any, she has to meet this requirement or give policy directives of a particular nature to meet these requirements; and if she will make a statement on the matter. [27042/98]

Brendan Howlin

Ceist:

43 Mr. Howlin asked the Minister for Public Enterprise the timeframe she envisages for the setting up of the commission for electricity regulation; the length of time she anticipates it will take for trading mechanisms to be agreed between the ESB and the regulator; the expected date of approval to build a new generating plant; her views on whether new capacity can be provided by the year 2001 in order to prevent the possibility of power cuts; and if she will make a statement on the matter. [26923/98]

Eamon Gilmore

Ceist:

48 Mr. Gilmore asked the Minister for Public Enterprise if she has satisfied herself that the ESB will continue to be in a position to meet all electricity needs in view of reports that the company has to date in 1998 experienced 15 amber alerts, the point at which it is close to being forced to withdraw supplies for some consumers; if the ESB has sought sanction from her for the provision of an additional 400 megawatt power station to meet growing demand; if she will sanction this request; and if she will make a statement on the matter. [26987/98]

Bernard J. Durkan

Ceist:

78 Mr. Durkan asked the Minister for Public Enterprise the total capacity of the electricity providers; if this is sufficient to meet requirements, current and projected; and if she will make a statement on the matter. [27185/98]

Bernard J. Durkan

Ceist:

79 Mr. Durkan asked the Minister for Public Enterprise the long-term proposals, if any, she has in anticipation of increased industrial expansion for the provision of sufficient and suitable power supplies; and if she will make a statement on the matter. [27186/98]

I propose to take Questions Nos. 15, 43, 48, 78 and 79 together.

Current installed capacity in Ireland is approximately 4450mw. The bulk of this is provided by ESB power plants, with the balance provided by small scale generating plants. The existing volume of electricity capacity is adequate to meet current demand for electricity from industrial, commercial and domestic users.

The "amber alerts" require particular clarification. Recent "amber alerts" do not mean that the ESB has insufficient capacity to meet all current demands for electricity. The ESB, like all utilities, operates on a margin which is the difference between available capacity and peak demand. Generally, if this margin falls below 300mw in current circumstances, the "amber light" goes on. If a major generating unit fails in such a situation, the possibility can arise of capacity being unable to match demand. A series of "amber lights" indicates a tightening of the operating margin in a growing economy and underlines the need to maximise the availability of existing capacity and to plan for additions to existing capacity.
Record economic growth has fuelled an unprecedented growth in demand for electricity. Growth in demand for electricity has increased by approximately 31 per cent over the past five years. New plants to meet continuing growth in demand include phase two of ESB's combined cycle gas plant at Poolbeg which came on stream last month, phase three of Poolbeg planned for December 1999 and the new independent 120mw peat plant at Edenderry to come on stream in mid-2001. In regard to longer-term capacity planning, the Electricity Regulation Bill, 1998 provides,inter alia, for the publication by the ESB of an annual statement estimating, for a seven year period, the generating capacity which is likely to be connected to the transmission system.
In anticipation of the enactment of the Bill, the ESB in consultation with my Department published a statement of estimated future capacity requirements up to 2005 for the information of the industry in October last. This concluded that existing capacity together with the additions mentioned above, will be broadly sufficient to meet demand up to 2001. New capacity in excess of 200mw will be required in late 2001 or early 2002, and further new capacity in excess of 800mw will be needed by 2005.
A number of private sector interests are at present actively developing plans to enter the Irish market under the provisions of the new electricity directive to be implemented here by 19 February 2000. These include Marathon, Northern Ireland Electricity and IVO/Elf. ESB are making similar plans for new plant and I have recently given approval to ESB for capital expenditure in the preparatory work up to completion of the planning permission process.
Both ESB and the private sector interests involved will, of course, require an authorisation to construct new plant from the new Commission for Electricity Regulation to be established in the near future. On the assumption that all necessary approvals are secured during the coming year, I have every confidence that new gas-fired plant will be available, as required, by end 2001. The recruitment process for the new regulatory commission has been completed and the first appointee will be in place in the very near future.
On the issue of trading mechanisms, this will now be a matter for consultation among all interested parties.
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