Written answers

Thursday, 5 July 2007

Department of Communications, Energy and Natural Resources

Electricity Generation

5:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 313: To ask the Minister for Communications, Energy and Natural Resources if he will provide details on reports that he intends to sanction the decommissioning of the ESB's Poolbeg plant and the granting of the site to another power company; the value he estimates the ESB's Poolbeg site is worth; and if he will make a statement on the matter. [19664/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

Decisions regarding the future of ESB's electricity generating stations are a matter for the board and management of ESB and not one in which I have a direct function. However, disposal of assets are subject to the Department of Finance code of practice for the governance of state bodies. The code of practice sets out the obligations of the company with regard to asset valuation, transparency and competitive tendering processes. The chairman is required to report to me annually on compliance with these obligations.

The board of ESB announced recently its intention to divest four of its power plants, including Poolbeg, in accordance with the asset strategy agreement of November 2006 between the Commission for Energy Regulation (CER) and ESB. The strategy is designed to ensure the progressive reduction in ESB's market share in power generation to around 40% in an all-island market context by 2010. In addition to the expected positive impact on market conditions, it is the case that ESB PowerGeneration will also become more efficient and commercial in the process.

The programme for Government mandates EirGrid to work in consultation with CER to develop a state owned landbank to facilitate new independent generation, including flexible/mid-merit plant. This will complement the release of ESB sites under the CER-ESB agreement this year.

The valuation of the Poolbeg site is a matter for the board and management of the company in the context of any commercial negotiations into which it might enter in its implementation of the terms of the CER-ESB agreement.

Comments

No comments

Log in or join to post a public comment.