ESB plans to spend €22bn on network and plants

THE ESB is planning to spend €22 billion on developing its network and generating plants, in what will be the biggest investment of its kind in Ireland. Barry O'Halloranreports.

A corporate plan launched by the company yesterday will see it spend €11 billion on its networks, and ultimately spend €1 billion on a carbon-free coal-fired power plant, which is likely to be located at Moneypoint, Co Clare.

ESB chief executive, Pádraig McManus, said the strategy would see investment of €22 billion in developing the company's assets, eliminating most of the 15 million tonnes of greenhouse gas it produced every year, dramatically increasing its use of renewable energy and expanding its overseas businesses.

Most of the investment will take place between now and 2020, but the plan extends to 2035. At that point, he said, the company's Irish generating plants would be a mix of renewable, clean coal and conventional power stations.

At the same time, connections to Britain and possibly the continent would mean that the country would also have the option of importing electricity.

Consequently, Mr McManus said the ESB did not see nuclear power "being an issue" for the country before 2035. "If the technology develops . . . then it could be a possibility at that stage," he said. However, he added that the ESB had no plans to get involved in building nuclear power plants.

Under the terms of an agreement with the Commission for Energy Regulation, the company is closing down power plants with the capacity to produce 1,500 megawatts of power, about one-quarter of the State's total peak demand, between now and 2010.

It intends building wind farms with the capacity to produce 1,400 megawatts. It will back these up with flexible gas-fired plants that can supplement when the wind farms are not contributing.

The €11 billion investment in the networks, much of which will be subject to the energy regulator's approval, will facilitate 6,000 megawatts of wind power.

The ESB will spend a further €6.5 billion on smart metering and other structures needed to facilitate renewable energy.

The company also intends setting aside €4 billion to fund its international expansion. The ESB is already active in Britain, Spain and the Middle East, and believes that overseas markets offer the best option for growth.

One of the plan's key aims is to cut most of the 15 million tonnes of CO2 that the ESB produces every year to "net zero" by 2035.

It intends funding the €22 billion spend from a combination of its own resources and debt.