ESB power station opens in North

A NEW £200 million gas-fired power station built by the ESB in Northern Ireland will help hold down electricity prices, according to the energy regulator.

Douglas McIldoon said the Coolkeeragh power station in Derry, which opened yesterday, should stop prices rising by as much as they would have without it.

"Gas prices are about three times what they were three or four years ago and, therefore, prices will not come down as a result of this station," he said.

In fact, he conceded, prices in the North may need to rise slightly quite soon. But he said: "They certainly are lower than what they would be in the absence of this station."

The 400 megawatt plant, built beside the oil fired station it replaces, is said to be the most efficient power station in Ireland.

It has been built by ESB who has been able to enter Northern Ireland as a result of the opening up of the energy markets North and South Northern Ireland Electricity has already opened and is extending a plant outside Dublin.

The new Coolkeeragh station supplies large customers in the North, can supply one third of peak demand in the province and is sending a third of its output to the Republic.

It was opened jointly by Minister Noel Dempsey and Northern Ireland Economy Minister Angela Smith.

Ms Smith said modern and efficient plants like Coolkeeragh were able to maximise business opportunities presented by the development of an all-island energy market.

"The new all-island electricity market will be good news for consumers. It will bring two small markets together to former a larger and more competitive marketplace."

Mr Dempsey added that it would bring "choice and competitive prices to consumers."

ESB chairman Tadhg O'Donoghue said the new plant was a key factor in the development of an all-island energy market.

"The efficiency of production at Coolkeeragh brings the benefit of lower cost energy to electricity customers North and South, and it is an important step in the realisation of the GB/Ireland regional energy market."

The decision to build the power station required the extension of the natural gas pipeline from Belfast to Derry bringing with it the added bonus of natural gas for commercial and private users in towns and villages along the route and in Derry.