The ESB yesterday received the go-ahead to carry out a €200 million environmental clean-up of its Moneypoint coal-burning station.
This follows An Bord Pleanála dismissing an appeal lodged by An Taisce against the proposal.
The works are necessary to allow the station operate past 2008 in order to comply with a licence granted by the Environmental Protection Agency (EPA) requiring that pollution levels be drastically cut at the station.
An Taisce lodged an appeal, pointing out that the ESB's retrofit project for Moneypoint - which produces a quarter of the State's electricity - will increase greenhouse gas emissions.
The national trust claimed that Clare County Council in its decision failed to have regard to the provision of the strategy for fuel by switching the station to gas, and to the quantification of the cost of emissions trading which would be required through continued and increased level of CO2 emissions from Moneypoint.
Currently, Moneypoint emits 40,000 tonnes of sulphur dioxide and 22,000 tonnes of nitrogen oxide into the atmosphere each year.
The project will reduce the emissions by as much as 80 per cent.
In its formal order, the appeals board granted planning having regard to "the environmental benefits of significant reductions in emissions of sulphur dioxide and nitrogen oxides, and to requirements for reductions in emissions of these gases as set out in European and domestic legislation".
The board's decision also had regard to Government policy in relation to the reduction of greenhouse gases as expressed in the National Climate Change Strategy for Ireland and as further developed through ministerial statement, and to Ireland's forthcoming participation in a European greenhouse gas emissions trading scheme.
The appeals board stated that the proposed development "would not seriously injure the amenities of the area and would be in accordance with the proper planning and sustainable development of the area".
In response to the decision, Mr Tom Prendeville, west Clare member of Clare County Council, said: "Today is a momentous day for west Clare.
"A lot of people in the area will rejoice today.
"The decision has huge implications for west Clare and will guarantee the social and economic viability of the area."
Cllr Prendeville added: "I would hope that the ESB would now press ahead with the retrofit project."
A spokesman for the ESB yesterday welcomed the decision.
The board of the ESB is to make a decision by the end of June as to whether to press ahead with the project.
