The recent review of the International Energy Agency is a valuable independent critical assessment of our overall current energy policy. General lessons can be learned from reviews of this nature and although the recommendations and findings of such reviews are not legally binding they nevertheless provide us with a valuable yardstick against which we can assess our own strategy for the evolving energy sector.
Peat has traditionally been used as part of Ireland's mixed fuel policy pursued in the interest of security of supply. Indeed, peat was for many years Ireland's only indigenous fuel. The future of the peat plants operated by the ESB was considered in the 1995 report of the peat review group. That report laid out a programme of phased closure for the older less efficient peat-burning units together with a programme of refurbishment for other units as well as recommending the construction of a new 120 mega watt peat plant to be located in the east midlands.
The refurbishment programme for the existing stations coupled with the commissioning of the new 120 mega watt station represents a long-term strategic approach to ensure the continued use of peat in electricity generation. It also maximises long-term employment in peat production and electricity generation in the midlands.
In 1995 my predecessor signed a memorandum of understanding with the EU Commission on the provision of EU financial support for the new 120 mega watt peat plant currently under construction near Edenderry. One of the conditions of this agreement was the achievement of a reduction in carbon dioxide levels here through a programme of rehabilitation of cutaway bog and a programme of phased closure of the oldest and least efficient generation sets and selective refurbishment, with the latest technology, of some of the less old units. There is flexibility within this framework as to the plants and generation units to be retired or refurbished. The commitments given in relation to peat stations are being complied with and some of the oldest units are no longer operational.
The operation of the existing peat plants is the responsibility of the ESB and plans or proposals that affect the future of these plants are a matter for the board of the ESB in the first instance, in consultation obviously with Bord na Móna.
As the Deputy will be aware, the electricity sector in Ireland is due to be liberalised from February 2000 next under the terms of the EU Electricity Directive. That directive allows a member state to make provision for the use of indigenous resources to meet up to 15 per cent of its annual electricity requirements. The future of peat fired power stations also falls to be considered in the context of the development of a liberalised electricity market.
