Quinn to have big role in power supply by 2010

THE Quinn Group will be a huge player in the electricity market as soon as 2010, a move which could result in cheaper energy costs for consumers.

Sean Quinn’s plans to invest an estimated €1 billion in building two power stations in the east and west of the country are currently with An Bord Pleanála and are due for decision by August 16.

The planning process would appear to be the billionaire’s only potential stumbling block as both the Government and the Commission for Energy Regulation have publicly come out in favour of his plans. In fact it fits in nicely with the commission’s plans for the ESB’s share in the electricity market to be slashed to a mere 40% by 2010.

The planned natural gas-fired station at Toomes in Louth will general 450 megawatts while the station at Toherroe, Co Galway, will generate 400-450 megawatts. When fully operational they will have the potential to provide power to 600,000 houses.

The commission said yesterday if the planning process is fast-tracked it could give Mr Quinn permission to construct the stations and the licence to generate electricity in time to be productive by 2010.

By putting 900 megawatts into the market Mr Quinn would take up 35% of the current demand and would replace more than two-thirds of the 1,300 megawatts the commission has demanded the ESB divest.

There are already a further three projects in the pipeline that between them will generate a further 1,200 megawatts. Bord Gáis is building a power station at Whitegate, Co Cork, the Viridian group is at an advanced stage in the construction of a second generation facility at Huntstown, north Dublin and the ESB is building a plant at Aghada, Co Cork.

Nevertheless, the commission is not concerned that there will be an oversupply. A commission spokesman said it estimates electricity demand will continue to rise by up to 5% per year. He also forecast that there will be a gap of up to three years between Mr Quinn’s two facilities coming online.

“From our point of view, we want as much independent generation as possible in the market. That makes the market more competitive and reduces the ESB’s position, leading to a greater level of independence. Our primary objective is liberalising the market.”

A spokeswoman for Minister for Communications, Marine and Natural Resources Noel Dempsey yesterday said Mr Quinn’s plans fit in perfectly with the minister’s controversial white paper on energy as it would increase competition and be good for business.

The energy white paper and the reduction in the ESB’s share in the market are vehemently opposed by the unions representing the ESB’s 6,000 workers. They said they will start industrial action if the company proceeds with the divestment of the 1,300 megawatts.