Dáil Éireann díospóireacht -
Tuesday, 4 Mar 2003

Vol. 562 No. 4

Written Answers - Electricity Supply.

Joe Sherlock

Ceist:

148 Mr. Sherlock asked the Minister for Communications, Marine and Natural Resources the steps he is taking to ensure the adequacy of the electricity supply having regard to warnings from a company (details supplied) and other sources of electricity shortages by 2005 unless new power stations are built; the plans there are for the provision of additional power stations; and if he will make a statement on the matter. [6280/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

The Commission for Energy Regulation, CER, is required, under section 9 of the Electricity Regulation Act 1999, to have regard to the need to ensure that all reasonable demands for electricity by final customers are satisfied, in addition to promoting the continuity, security and quality of supplies of electricity.

I have been advised by the CER of the need to obtain at least 300 mw of centrally dispatched, large-scale plant by 2005 in order to meet generation adequacy requirements. This projected capacity requirement has been identified in the most recent forecast statement, entitled "Generation Adequacy Report 2003-2009", which was published by ESB National Grid in November 2002, in accordance with section 38 of the Electricity Regulation Act 1999.

At present, there is no firm commitment from prospective participants to construct the amount of capacity required. The CER, in exercise of its responsibilities, announced on 20 December 2002 that, following extensive consultation and having examined a number of options, it was of the view that the most appropriate approach to securing additional capacity is to award a contract to one or more successful bidders, through a competitive process for the purchase of 300 mw to 400 mw of electricity. The CER is also of the view that ESB, operating as the public electricity supplier, PES, is best placed in the market to offer such a contract.

The CER is currently developing the framework for the competitive process and for awarding the final contract with ESB PES. The CER announced on 28 February 2003 its intention to invite proposals from potential electricity generators in April 2003 when it will issue a formal invitation to tender. Details of the competition are expected to be published on the CER's website within the next two or three weeks. The CER's target date for award of the contract is 1 October 2003 with a view to having the new power plant operational by the end of 2005.