The ESB are carrying out repairs on its new peat-burning power station at Shannonbridge, Co Offaly, which has not been operating since the end of March because of corrosion in the pipes. The company hopes to have the plant back in operation next month.
The plant is under warranty with Finnish company Foster Wheeler. The ESB has said the 40 jobs at the plant are safe, but Bord na Móna, which supplies peat to the station, will be reviewing its employment levels and seasonal jobs are likely to be reduced.
The ESB owns 19 power stations in the Republic and the loss of production from one station will have little effect on its output. Demand for electricity at this time of the year is also lower than during the winter months.
The ESB said a "chemical reaction" had resulted in corrosion in the pipes, but Foster Wheeler would replace the pipework, according to an ESB spokesman. Some of the work is being done at present, but a permanent solution to the problem will be provided in September, when the plant is due for scheduled overhaul.
The fact that the plant was using new technology, required under the terms of the Kyoto protocol, breakdowns were always a risk, the company said. Other ESB plants have also suffered problems recently, including the Coolkeeragh plant in Derry, which is a gas-fired station. It had problems with its boilers a few months ago. Again a warranty was in place. An ESB spokesman said if problems occurred, it was best if they were detected in the early years of a plant's operation.
It is understood that Bord na Móna does not get paid for its peat supplies if the power station is undergoing what is known as "forced outage" or unplanned maintenance. Consequently, peat has built up at Bord na Móna sites and the company's chief executive, John Hourican, warned yesterday that this could cost his company millions of euro.
The ESB said the total cost of repairing the pipework was not quantifiable at this stage, but the plant was under warranty so the costs would be borne by Foster Wheeler.
There is a similar corrosion problem at the Lanesboro peat-burning station in Co Longford, said the ESB spokesman. He said it was not as bad as at Shannonbridge and the situation was being monitored closely.
The plant at Shannonbridge is capable of producing 150 megawatts of power, which makes it a small plant by the standards of ESB's network. The plant was officially opened last year, although it was operating for about a year before this.
Peat-burning stations are among the least economical of ESB power stations and need to be supported by a levy on electricity bills, known as the public service obligation levy.
Ironically, Bord na Móna is trying to enter the electricity market itself and is believed to be interested in bidding for a peat station in Edenderry, Co Offaly.