No ESB comment on Moneypoint proposals

The ESB had no immediate comment on the Government's proposals to change or close the Moneypoint coal-fired power plant

The ESB had no immediate comment on the Government's proposals to change or close the Moneypoint coal-fired power plant. The company wanted to study the strategy document in detail, according to a spokesman.

The Government said that the station on the Shannon Estuary in Co Clare could be converted to natural gas or could be closed in an effort to reduce carbon dioxide output.

Mr Michael Kelly for the ESB said he was reluctant to speculate on the future of employment at the station, or on the future of the plant itself, until he had an opportunity to consider the strategy carefully.

"We fully recognise that the electricity sector, as well as other sectors, has a role to play in this crucial issue," he said.

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Moneypoint was established following the oil crisis in the 1970s to provide diverse ways of generating power. One of its advantages was that while the price of oil and gas had tripled recently, the cost of coal had remained unchanged, Mr Kelly said.

Moneypoint is the only coalfired power plant in the State and generates one-fifth of the electricity needed in the Republic. It is understood that if the station, with a workforce of 300, were to convert to a new fuel, gas would be the most efficient option but would necessitate the building of a new plant. Gas would also be less labour-intensive.

In a separate development, Fine Gael yesterday announced its own proposals to cut greenhouse gas emissions and its national energy policy.

For the State to meet its legally binding international requirements, we must deal with those sectors causing the main increases - electricity generation, transport and agriculture, said Mr Ivan Yates, the party's environment spokesman.

The Government has preached a great game on the environment but has done nothing in practice, according to Mr Yates. "We have totally failed to decouple economic growth and energy consumption. Interim targets set for the year 2005 will not be met."

The party argues for the conversion of Moneypoint to natural gas and for preferential treatment for combined heat and power plants. It has suggested credits in the electricity market to reward "green electricity" suppliers and encouragements for companies using renewable sources of energy.