ESB intends to cut its market share from 90 per cent to 60 per cent in the next five years, the energy supplier's chief executive has confirmed.
Speaking at the Institution of Engineers of Ireland’s annual conference in Killarney this afternoon, Mr Ken O'Hara, said the company’s goal is to remain within the Irish electricity market while restructuring of our plant portfolio.
The electricity market is due to open fully in February 2005. "For this market to deliver on the objectives of increased competition and customer choice it is clear new generators and suppliers must enter the arena," he said.
To accelerate this process ESB has voluntarily agreed to make 600MW of power to enable companies gain experience of operating in this market and establish a customer base.
ESB is also facing the more immediate concern of possible electricity supply shortages this winter, due in part to the pace of recent economic growth.
Mr O’Hara said contingency measures are in place to ensure supplies and said supply would be improved with the commissioning of two new gas plants next year at Ringsend and Huntstown, North Dublin.
An electricity link between Ireland and Scotland to be completed later this year will provide another source of power, Mr O’Hara revealed.
Natural gas and coal will remain the key fuels for energy generation with oil no longer favoured for environmental and security reasons. Peat is also important in an Irish context.
Mr O’Hara accepted wind generation technology has developed quickly in the last five years - now producing 150 MW per annum - but said wind power cannot yet be dispatched and controlled like other energy sources.
He said closing Moneypoint, the coal-fired generating station, to meet environmental objectives was not going to happen as it would leave the State’s electricity network overly dependent on gas-fired power stations.
"No developed economy should contemplate over 70 per cent dependence on a single fuel such as gas, especially when most of it will be imported," said Mr O’Hara. "We believe national environmental obligations can be met while retaining Moneypoint as a coal-fired station," he added.
Mr O’Hara pointed to an investment of £2.1 billion in renewing and expanding the national electricity network as evidence of ESB’s commitment to deliver a quality electricity supply.