Green light for construction of €300m Cork power station

THE go-ahead has been given for a new power plant to be built in County Cork to compete with the ESB and bring fresh competition to the electricity market.

Last night Natural Resources Minister Noel Dempsey gave the ESB permission to begin construction of the €300 million gas-powered plant at Aghada.

However, while the 400 mega-watt facility will be operational by 2009 it can only be built on condition the ESB sells all of the power its creates to competitors.

Mr Dempsey stipulated the ESB must ringfence all of its output from the station and sell it to other electricity providers.

He said this decision was taken to improve competition.

“The Government decision will help address two significant elements of energy policy, security of supply and competitiveness in a single electricity market.

“Under this decision the ESB Power Generation will design, build, own and operate the Aghada unit. The case for future retention by ESB of ownership of the new Aghada unit is predicted upon sufficient progress being made on the Commission for Energy Regulation (CER) and ESB agreement.”

The ESB’s share of the market has already dropped from 100% to 63% but this has not been enough to stave off criticism from the CER which wants to encourage greater competition between operators in Northern Ireland and the ESB.

Yesterday Mr Dempsey said the output of the Aghada station was needed if the country was not to fall victim to power shortages.

The IDA has already warned the Government the country is in danger of severe energy shortages unless it acts quickly to find alternative sources beyond the existing grid.