Former environment minister Denis Naughten is hopeful Lough Ree power plant in Co Longford will reopen next month.
The Lanesboro facility shut in early July because of concerns over hot water discharges into the Shannon.
Up to 150 jobs are in jeopardy at a nearby Bord na Móna operation, which supplies the plant.
Today, the Environmental Protection Agency proposed guidelines on a revised licence to the ESB.
Deputy Naughten's hopeful it will be approved, allowing the plant to reopen in the coming weeks.
"I think it's welcome that the EPA has issued this recommendation.
"I now hope that it will allow for the reopening of the Lanesboro power station early next month," he added.
"We have to see the full implications of this particular decision."