The operator of the national electricity grid has warned that constraints on the system mean there is "little or no" capacity for new industrial demand. Last night IDA Ireland warned that weaknesses in the power supply system must be addressed before they impact negatively on the economy.
With concern mounting over a spate of job losses in a high-tech sector that consumes high volumes of electricity, EirGrid, which oversees the distribution of electricity, said substantial investment was required to accommodate new users of power.
Expenditure of £2.1 billion to upgrade the electricity system has been sanctioned. However, planning issues could delay elements of such investment by up to five years, posing a threat to vital future investment to replace lost jobs.
With about 2,000 jobs lost this month, an IDA spokesman said the level of cuts was worse than it had expected. He said the situation would not improve before the end of the year, and added the jobs agency believed constraints on the electricity system should be addressed before they affect the economy.
In a new paper, EirGrid said: "Studies for 2001-2001 indicate that there is little or no additional capacity on the grid for significant extra generation demand without additional reinforcement."
The manager of EirGrid's power system planning division, Ms Adele Sleator, said large parts of the grid were operating outside standard. "If there is major infrastructure needed [for a significant industrial project] then it is unlikely that we could meet that," she said.
"If the country sees infrastructure as crucial and has significant benefits for economic development then the planning process needs to reflect that."
A large industrial project with a two-year lead time would be unlikely to secure electricity from the grid in many parts of the State, she said.
The system was weakest to the north-west of a line between Dundalk, Carrick-on-Shannon and Galway, an area which comprises most of the Border, midlands and western regions prioritised by the Government for industrial development.
The ESB challenged EirGrid's findings. Its head of networks, Mr Dermot Byrne, said it had met all new requests for electricity supplies. "ESB Network have never failed to provide supply when a firm request was made. We have a history of pulling out all the stops to meet new requirements."
The State company acknowledges it cannot provide additional power "on tap" but says links to the network can be made when required.
Ms Sleator's report said: "Increased flows on most circuits have exhausted available spare capacity in the grid."