Viridian considers building generator

Viridian is considering building its own 400 megawatt electricity station in north Co Dublin, despite losing the recent competition run by the regulator to build two new power stations. Emmet Oliver reports

The board of Viridian has yet to take a decision, but the matter is being "seriously considered", the company said.

It also warned that electricity prices generally in the Republic may have to go up, possibly by 2 per cent.

It said the Environmental Protection Agency had given its Huntstown plant in north Co Dublin 77 per cent emissions credits for carbon dioxide pollution.

Because of this 23 per cent shortfall, Viridian said this would have to be "offset by increases in Republic of Ireland electricity prices". No precise figure was given, but sources indicated rises could be about 2 per cent.

In relation to any new plant, the company will require a licence to build the station from the Commission for Energy Regulation (CER), but this is not likely to be a major problem.

Viridian already owns the 343 megawatt power station at Huntstown.

The new station would be built alongside the existing plant. Planning permission is already in place from Fingal County Council.

The cost of building such a large station would be €250-€300 million.

In a trading statement yesterday, Viridian said: "We continue to assess the opportunity for a second station on the Huntstown site against the background of demand projections from ESB, which indicate a potential need for further capacity from 2007."

Late last year a group called Tynagh Energy surprised the industry when it won one of two contracts to build new power stations. Aughinish Alumina in Co Limerick won a contract for a smaller station.

Reports have emerged that some of the partners in the Tynagh consortium might be willing to sell their stake in this project, but the CER said there was no indication of this.

Crucially, as part of this contract, Tynagh Energy has a 10-year deal to sell electricity to the ESB.

In Viridian's case, there would be no such guarantee.

In its pre closing statement yesterday, the company said its results for the year ending March 31st would be in line with expectations.