Seanad Éireann díospóireacht -
Wednesday, 10 May 2000

Vol. 163 No. 4

Adjournment Matters. - Electricity Generation.

Mr. Chambers

I thank you, a Chathaoirligh, and the Minister of State for taking this matter on the Adjournment. During recent public and political meetings in the north Mayo-Bangor Erris region, concern was expressed by the people of the area about the proposed closure in 2005 of the peat burning and electricity generating station at Bellacorick, Bangor Erris, County Mayo. Since 1950, Bord na Móna and the ESB station have provided the main employment in the region. Bord na Móna currently employs 98 full-time and 120 part-time employees. The ESB employs 70 permanent staff. The employees come from the hinterlands of Newport, Crossmolina, Ballycroy, Bangor Erris and the Belmullet peninsula.

A recent television documentary by RTE concerning the Cosgrove family from Doohoma outlined the changes that have taken place in this north Mayo region and the important role that Bord na Móna and the ESB power station have played in the change in the economic life and prosperity of the region. Those two organisations have helped to stabilise the economy of the region and keep a number of people living in the area and raising their families there. Now is the time to examine the possibility of putting in place alternative employment that will continue to support the communities of the area and provide a future for the youth of the region.

The recent decision by Enterprise Oil to bring the gas pipeline for natural gas into the north Mayo area provides an opportunity to examine the feasibility of building a new power station for the western region to supply the national grid. It will also provide low cost energy for the provision of jobs. Will the Minister consider establishing a task force to examine and plan the future development of this region, taking into consideration all the economic factors, along the lines of that established in relation to the provision of jobs when the Asahi plant closed? A combination of the development agencies should examine the socio-economic needs of this region. If the Bord na Móna operation is to close, or if its life is not extended, an alternative enterprise and planned development should be established for the continuous development of the region and the future of the people who live there.

Minister of State at the Department of Public Enterprise (Mr. Jacob)

I thank Senator Chambers for raising this important matter and for affording me an opportunity to address the question of the replacement of Bellacorick peat fired station with a new natural gas fired electricity generating station at Bangor Erris, County Mayo.

In relation to the approval of all new electricity generating stations, responsibility for the licensing of stations and the granting of authorisations to construct stations rests with the Commission for Electricity Regulation in accordance with sections 14 and 16 of the Electricity Regulation Act, 1999. It will be a matter for the ESB and independent power producers to decide whether, when, what type and where they wish to build new generating stations and then they will need to seek the various necessary permissions from the Commission for Electricity Regulation, the planning authorities and the Environmental Protection Agency etc.

To some extent, location will be influenced by where the market for electricity exists in sufficient volumes. Other factors also come into play such as proximity to the gas transmission system, ease of access to the high voltage transmission grid and availability of cooling water. Those are not matters in which the Minister for Public Enterprise has a function.

Until there is clarity in relation to the scale of the gas discovery off the west Mayo coast and specific plans concerning the landing arrangements for any such gas, neither the ESB nor other parties is likely to consider a potential proposal for a gas fired station on the west coast. The ESB currently has no proposal for a gas fired station in Bellacorick or its environs. The ESB peat fired power station at Bellacorick comprises two 20 megawatt units, which were commissioned in 1962-63. For some time this plant has been scheduled for closure in 2004, by which stage the station will be well over 40 years in operation.

In accordance with the outcome of the recent tripartite agreement between the Department of Public Enterprise and ESB management and unions, signed on 17 February 2000, all existing peat stations will close, including Bellacorick. For an interim period of up to five years, to be dovetailed with the opening of two new peat stations in Lanesboro and Shannonbridge, the existing stations will continue to operate. The closure date for Bellacorick will not be changed by this arrangement.

The Minister for Public Enterprise and I have kept in close touch with developments relating to the Corrib gas field since first being informed of the potentially significant gas find there. Enterprise Oil and its partners, who are operating the Corrib field, have indicated that further tests will have to be carried ut this summer before a final decision is taken by them as to whether the field is to be developed commercially. In the meantime, a number of parties are actively considering options for the carriage of gas from the Corrib field, if it is declared commercial.

Bord Gáis Éireann has applied to the Department of Public Enterprise for consent to construct a pipeline from Dublin to Galway and Limerick to complete a national ring-main. Enterprise Oil has also notified the Department of its intention to build a pipeline from the west coast to link into the Bord Gáis system in the east of the country. However, under the legislation, the Minister for Public Enterprise has no function to determine the proposed route of a pipeline to be built by Bord Gáis or private operators. Decisions regarding routing will be made by the players involved on commercial grounds.