The ESB is committed to a reduction in its generation market share to 60 per cent by 2005, according to ESB’s chief executive, Mr Padraig McManus.
Speaking at the Energy Ireland conference in the Burlingtion Hotel Dublin, Mr McManus said that while the ESB was prepared to step aside and allow new entrants into the market, private investors will have to "take the plunge."
There is, however, a gap in Ireland’s regulatory objectives which policy makers need to fill by defining a set of realistic objectives tailored to Ireland’s unique situation, he said.
"The size of the electricity market in Ireland is such that any individual 400MW generation entrant has significant impact on all generators, " Mr McManus said.
"In a market of this size integration in an important driver of economies of scale.
"I believe Ireland has the makings of a very attractive market provided of course we continue along a sensible policy path which takes account of market size."
Measures to facilitate market liberalistation include:
- a multi-million euro project to implement a new metering database system.
- continued ringfencing of its regulated businesses.
In addition the ESB has agreed to close all its existing peat stations and replacing them with two stations to ensure security of supply.
"Ultimately the success of ESB will be measured by a combination of successful market opening, ESB’s own success in the new market with steady growth internationally," Mr McManus added.