Billy Timmins (Wicklow, Fine Gael)
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Question 96: To ask the Minister for Communications, Marine and Natural Resources if evaluation or appraisal has been carried out of the various power stations throughout the country currently due for decommissioning or with an identifiable limited lifespan in the context of deregulation and the introduction of generating capacity from sustainable sources; and if he will make a statement on the matter. [26568/06]

Noel Dempsey (Meath, Fianna Fail)
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I was recently apprised of a decision by the ESB Board not to undertake any further significant investment in the 620 Megawatt generating station at Tarbert, which is likely to lead to the closure of the plant within a number of years. I am also aware that a number of other plants within the ESB's portfolio may be subject to similar consideration over the next few years, however I have not been given any formal notification by the ESB Board of its intentions in this regard.

However, in accordance with the electricity transmission system Grid Code (i.e. the Regulations which all generators are required to adhere to), there is a requirement for a plant / operator to give a minimum of 24 months notice of plant closure. It should be noted that EirGrid, the Transmission System Operator {TSO}, has not been formally notified of any plant closures over the coming 10 year period and therefore, at this juncture, no planned closures have been confirmed.

The Commission for Energy Regulation (CER) has responsibility for the security of supply of electricity and gas in Ireland. EirGrid {TSO} is responsible for the production of an annual assessment of the adequacy of generation over the subsequent seven year period ("Generation Adequacy Report"), which takes into account both historical and forecast demand and supply (generation).

The results of the most recent Generation Adequacy Report, covering the period 2006-2012, noted that there would be a requirement for new generation capacity on the system from 2009 onwards. However, this study was completed in November 2005, before the announcement concerning the decision on the Tarbert Station was made.

With regard to the assessment of plant with an identifiable limited lifespan, the CER has advised that it is aware that certain plant are of an age that consideration in the future will be given to their expected remaining lifespan. It is noted that there has been some poor performing plant in recent years and this poor performance can be attributed to, amongst other things, the age of some plant on the system.

The EirGrid "Generation Adequacy Report 2006-2012" considers plant availability / performance, which can be linked in part to plant age, and concludes that new generation plant is required from 2009 onwards. The report also concludes that "the timing and quantity of new plant required will largely depend on the availability performance of the existing plant."

EirGrid will take cognisance of this and all other factors relating to electricity supply and demand, in the preparation of its next Generation Adequacy report, which is expected to be published at the end of this year, to cover the period 2007-2013.

I would also advise the Deputy that significant new thermal generation capacity of up to 536 MW came on stream in the first quarter of this year at Tynagh, Co. Galway (384MW) and Aughinish, Co. Limerick (152MW). In addition to the above, Viridian (Huntstown Power Ltd.) has announced, and is proceeding with, the construction of a second new 400MW generating station in Huntstown, which is currently scheduled to come on stream in late 2007.

The CER is currently planning the introduction of an All Island Market for electricity, which, with the introduction of a specific capacity mechanism, is intended to provide for the appropriate incentives and market signals to attract new generation capacity, including sustainable sources of generation. The new market design will also take into account the particular attributes of sustainable forms of generation and will be designed to support such generation.

Support programmes put in place by this Government have more than doubled the capacity of renewable energy powered electricity generating plants connected to the electricity target in the last two years.

Building on this progress, I also announced recently an ambitious programme to treble to 15%, the contribution of renewable energy sources to electricity production by the year 2010.

There are over 860 Megawatts (MW) of renewable capacity connected to the national grid today. This consists of approximately 590MW of wind-powered plant, 236MW of hydro powered plant with the balance (approximately 35MWs) made up of different biomass technologies.

The new target will require growth in the sector to more than double from the 860 MW or so, currently connected to, 1650 MW by 2010. The target will be delivered by projects built under the Alternative Energy Requirements (AER) support programme and the new Renewable Energy Feed in Tariff (REFIT) programme. The terms and conditions of the REFIT programme are available on my Department's website at www.dcmnr.gov.ie.