ESB rules out involvement in ‘more expensive’ offshore wind-generation

THE ESB believes offshore wind-generated electricity is more expensive than even nuclear technologies and will not enter that sector in the medium term.

Commenting on the ESB’s strategy, Mr McManus said the group planned to have its third power station open in Manchester in 2013.

He has ruled out any involvement by the group in offshore wind energy for the present.

It is “far more expensive” to deliver than nuclear power and “we don’t see ourselves fitting into offshore in the medium term”, he said.

Mr McManus expects the planned €2bn in additional capacity will be delivered by 2020 ensuring the group continues to gain strategic advantage while Britain prepares to deliver its nuclear power programme.

The ESB has two joint venture power plants in place at this stage in Britain. Its first was built in Coby in 1992.

Meanwhile, the group said the cost of energy to the Irish business community has fallen to EU levels with the exception of Britain where the 30% fall in sterling has resulted in a sharp dip in energy charges in that market.

Mr McManus said that the €750m two-year subsidy from the ESB that ends next October has been a significant factor in that move towards parity with EU energy prices.

He expects that those ratings will be maintained after October as the Government introduce “price rebalancing” in favour of Irish industry, he said.

Strategy in the home market will be dictated by the group’s drive to deliver 30% of its energy output from renewables by 2020.

Restrictions on it building further conventional power plants is also a factor, Mr McManus said.