The ESB is planning to retain its two major turf-fired electricity generation plants in the midlands after 2019, despite expectations that they would close that year.
Bord na Móna, which supplies the turf for the power stations, this week told staff that renewal of its supply deal with the ESB was “absolutely critical” to its overall business.
About 100 jobs are based in the power stations, while Bord na Móna said “a significant number” of its 2,200 employees were dependent on the sale of turf to the ESB for use in the power plants.
However, the prospect of a renewed deal between the ESB and Bord na Móna has dismayed climate change activists, including Green Party leader Eamon Ryan.
Mr Ryan said turf-burning power plants had poor ratings when it came to efficiency and caused large amounts of greenhouse gases to be released into the atmosphere.
He said the continuation of the plants would help ensure that the State would not meet its EU greenhouse gas targets for 2020.
In an email to staff, Bord na Móna chief executive Mike Quinn said the decision by the ESB to keep the plants open was dependent on their commercially viability.
Mr Quinn told staff: “As many of you know, the fuel supply agreements for the two ESB stations in west Offaly and Lough Ree will expire in 2019. After this date, the ESB, our company’s biggest single customer, was no longer committed to purchasing our peat to run their power stations.”
He said he was “pleased to tell you that the ESB has now confirmed that they want to continue operating both power stations well beyond 2019”.
Mr Quinn said success in ongoing negotiations on price was “absolutely critical for the future, not only of feedstock, but Bord na Móna overall”.
‘Significant importance’
A spokesman for the ESB said that “both companies recognise the significant importance of the two ESB stations and the associated Bord na Móna peat harvesting and supply operations to the regional economy”.
Mr Ryan said the “real situation” was that turf burning power stations were uneconomic, compared to gas, oil, “or just about anything else”.
He said State subsidies for the turf-fired power plants were due to run out in 2018, and the power plants would never be economically viable when compared to “just about any other” fuel.
The Green Party leader said that, in allowing the ESB to continue with the power plants, “it seems the Government are opting out of any climate change strategy for the next 15 years or so”.
Lough Ree Power at Lanesborough, Co Longford, opened in 2004, replacing an older turf-burning power station, at a cost of €200 million. It generates up to 100MW of electricity.
West Offaly Power, at Shannonbridge, also replaced an older station. It opened in January 2005, at a cost of €250 million. It can generate up to 150MW of electricity.
