Supermac’s founder warns of impact of energy crisis on small firms

One of the State’s most prominent entrepreneurs has warned 10 per cent of small businesses may close within six months, due to the soaring cost of energy.

Businessman Pat McDonagh - who is behind the Supermac’s food chain, the Plaza Group motorway service stations and Só Hotels among other ventures - said the closed Derrybrien wind farm in Co Galway contained 71 turbines generating “green energy that can be turned on in the morning”.

Derrybrien wind farm is ultimately owned by the ESB. It had a controversial planning history and was central to EU Court of Justice cases against Ireland which resulted in the State being fined €15,000 per day. It has the capacity to produce some 60MW of electricity and was commissioned in 2006.

Mr McDonagh said the wind farm, which was taken off the national grid in February this year, should now be brought back into operation, given the altered circumstances in which Europe found itself and the capacity of the farm to power 40,000 homes.

Hosting foreign students and Revenue’s rent-a-room relief

---

Seán Moncrieff: The day my daughter went into surgery is the day I failed her

---

Tony O’Reilly obituary: Ireland’s first business superstar whose spectacular fall led to bankruptcy

---

Bruce Springsteen's Irish tour: Tell us your verdict

---

He said small businesses had already suffered increases of more than 150 per cent in energy costs and this would increase to at least 200 per cent by Christmas. He said “10 per cent of smaller businesses in the catering side of things, whether it is coffee shops or small takeaways or whatever, cannot afford and will not afford to continue.

“It is not just electricity prices on the increases, it is also food prices on the increase it is also interest rates on the increase ... people will not be able to pay all the increased charges”.

He also called on the Government to reinvigorate incentives for micro generation of electricity on the roofs of homes and farm buildings. “Farmers have plenty of hay sheds and slatted sheds all over the country that can be used for solar power. Let’s get moving on it, let’s get grants available. This will pay back now more than ever,” he said.

Mr McDonagh also raised the prospect of bringing Shannonbridge and Lanesborough power stations back on line. In a time of crisis, he said, “you turn on whatever power you have”.

The plants at Lanesboro in Longford and Shannonbridge in Offaly closed in December 2020 on environmental grounds, due their use of peat to generate electricity.. They closed permanently after the ESB failed to receive planning permission to switch them to biomass stations.

A spokesman for the ESB said planning issues had been central to the outcome for the power stations.

“Derrybrien Wind Farm ceased commercial operation in March and we are preparing for the decommissioning of the 70 wind turbines in accordance with planning laws and regulations” a spokesman said.