Spanish energy firm Endesa to upgrade two former ESB plants

SPANISH ENERGY group Endesa yesterday announced plans to upgrade two former ESB electricity-generating power plants that it bought in January.

In a release issued in Spain yesterday, Endesa revealed plans to replace the diesel-powered plants in Tarbert, Co Kerry, and Great Island in Wexford with new facilities that will run on natural gas.

Endesa said it has signed engineering contracts with Mott McDonald and ERM and it expects the upgrade to be completed by the end of 2012. No figure was put on the investment, but in January, on conclusion of its deal to buy the power stations, Endesa said it would spend €450 million on upgrades.

Endesa is Ireland’s second-biggest utility after ESB, with a 16 per cent share of the market. It currently has 1,068MW in installed capacity, which are mainly powered by diesel fuel.

Endesa said the facilities would be more efficient and flexible and the improved technology would cut CO2 emissions by 50 per cent.

The Spanish company said feasibility studies are being undertaken to study its options for the construction of the new gas pipelines.

“All the necessary technical and environmental impact studies are already under way,” Endesa said.

Endesa will replace the 260MW plant at Great Island with a 420MW generator. It intends building a new 300MW facility in place of the existing 600MW generator at Tarbert. This will cut overall capacity, but the new generators will be more efficient than the existing plants. Endesa will continue to operate the plants while building the new facilities.