Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

The Deputy has quoted much of the substance of my reply so I will not repeat it for him. It is settled Government policy that coal firing in Moneypoint will cease by 2025 at the latest. That has been well sign-posted. My predecessor wrote to ESB in order to start engagement about the future for Moneypoint. ESB has provided some response, but more work needs to be done in this area to provide a clearer roadmap. The response of ESB deals with key issues relating to the cessation of the use of coal for electricity generation. It raises issues around the security of supply, competitiveness and the sustainability of the company, as the Deputy pointed out. It also deals with the possible technologies to replace it. At this point a range of options is being discussed which will not surprise the Deputy as he mentioned them in his comments. Those options include off-shore wind, biomass, combined cycle gas, gas peaking plants and other combinations of those. Certainty about the future use of Moneypoint cannot be given because the decisions have not yet been made in that regard.

It was pointed out that market dynamics and wholesale market mechanics will ultimately decide who gets to build and what generation technologies will replace the coal capacity. There is a market within which the ESB, as a commercial entity, must operate when considering future generation. In this regard, ESB points out that the exact details of the issues created by the closure of Moneypoint coal-fired power units are commercially sensitive, particularly in the context of the “T-4" four-year-ahead capacity auction completed recently by EirGrid and SONI, the equivalent body in Northern Ireland. The new capacity mechanism auctions are conducted by EirGrid and SONI, operating under the regulatory supervision of the single electricity market committee, in a fully independent manner.

Apart from obtaining the necessary state aid approval and ensuring ongoing compliance with EU energy and state aid policy, I have no function in these matters.

Its new capacity mechanism, which is in line with EU state aid rules, is competitive and focused on delivering the generation services customers need at least cost. The process has been structured, clear and transparent, and has been well signalled to industry players. This latest auction, known as t-4, is for the delivery of capacity in 2022 and 2023. In broad terms, the results show the Irish generation portfolio is on the path towards its ambitious decarbonisation targets. The auction has facilitated the entry of new wind, demand-side and battery technology, supported by flexible gas plants required in the energy transition, with some fossil fuel plants or units being unsuccessful. These results are consistent with our overall long-term decarbonisation policy goals.

ESB is committed to playing a leading role in the transition to a low-carbon society, powered by clean electricity. It has confirmed in its response that coal-fired generation will cease no later than 2025. The response also confirms ESB’s intention that the Moneypoint site will be used for electricity generation post 2025, using some or all of a range of low-to-zero carbon technologies. In the coming years as we move decisively to confront the challenge of global warming and decarbonise the electricity heat and transport system, Ireland and particularly the west of Ireland is blessed with an abundance of potential renewable energy sources. There will be a need to harness this energy for the benefit of the State.

I look forward to the input of all parties to meet this challenge as part of the plan we are working on.

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