Rolls Royce Power Ventures is not among the six consortiums that have tendered for a new power station contract worth up to €1.4 billion, writes Emmet Oliver

Nobody was available to comment from the British company last night but it is understood the firm could not get a grid connection offer from electricity transmission company Eirgrid.

A connection to the national grid is necessary for companies to advance to the tendering stage and, in certain parts of the State, there are capacity issues. Rolls Royce Power Ventures owns a site in Dungarvan, Co Waterford. It hoped the Commission for Energy Regulation (CER) would allow it to build the power station on this site.

Established in 1994, Rolls-Royce Power Ventures has more than 30 projects either in operation or advanced development. They provide up to 1,000 megawatts of power and are worth in excess of $1 billion (€850 million)

The CER has declined to name the companies which have tendered, but the following companies previously submitted an expression of interest: AES Electric; Aughinish Alumina Ltd; Ireland Power Energy Ltd; Mountainside Properties; Scottish & Southern Energy plc/Bord Gáis Éireann; and Viridian Power Ltd.

The CER said the competition was being held to address "a projected shortfall in generation capacity in 2005".

The winner will be allowed to secure a contract with the ESB for a total of 3,400 megawatts over a maximum 10-year period. The sale of this power could be worth up to €1.4 billion.

Bidders are competing for the contract on the basis of price, although other technical, financial and regulatory requirements have to be met.

A CER statement said: "The commission expects to notify preferred bidders by November 10th, with the winner being announced and contracts signed by December 1st, when construction on the new generation plant will then begin."