Dáil Éireann Debate, Wednesday - 12 May 2004
54 Mr. O’Shea asked the Minister for Communications, Marine and Natural Resources if he has held meetings with Bord Gáis in regard to its plans to construct a gas-fired electricity generating station near Drogheda, at a cost of €250 million; if he will report on the content of such meetings; and if he will make a statement on the matter. [13710/04]
Amharc ar fhreagraBord Gáis Éireann continued to grow its electricity supply business during 2003 and continued growth of the business represents a key strategic intent of the company.
In this context BGE reviewed taking an asset-based position in electricity and, in October 2003, submitted a proposal seeking the approval of my Department for the company to: enter into a joint venture with Scottish & Southern Energy, SSE, for the construction of a 400 MW electricity generating station at Platin, near Drogheda; and submit the proposal as a bid to the CER competition for the construction of such a facility. This approval was granted.
As the Deputy may be aware, the purpose of the CER competition was to assist in addressing the reluctance by investors to enter the electricity generating market through facilitating the entry of two new independent generating plants with a combined installed generating capacity of over 500 MW.
The competition included an off-take guarantee in the form of a PES contract for the purchase of a specified amount of the electricity generated. As it transpired, the BGE-SSE joint bid was unsuccessful in the competition.
At this stage, the options open to Bord Gáis regarding power supplies for the electricity retail market are a long-term off-take agreement with a potential developer of a merchant electricity generating station or review existing and assess alternative sites-projects for a merchant power station. Bord Gáis will be considering these and other options during 2004.
