Participation in joint ventures overseas involving investments worth £2.5 billion (€3.1 billion) is believed to be a key part of the ESB's strategy to compensate for losses in the soon-to-be-liberalised domestic electricity market. The company envisages investing £500 million itself.

A spokesman said the ESB was looking at possible investments in Poland and was also examining the Middle and Far East.

Industry sources indicate that the liberalisation of the Republic's market will lead to a significant loss of market share for the ESB, but ESB International is already heavily involved in projects in the Far East.

Suggestions by rival Epower that ESB should be blocked from availing of the limited gas supply have been rejected by company secretary Mr Larry Donald. Existing players say there are sufficient gas supplies only to power two new stations but gas industry sources insist capacity will not be a problem within six months as new infrastructural options emerge.

Responding to calls by Epower for unbundling of the national grid, Mr Donald said that the ESB was fully supportive of the establishment of an independent transmission operator, with a separate management structure.

But he rejected Epower calls for the full liberalisation of the market by the end of next year, saying it ran counter to EU directives on liberalisation.