The Electricity Supply Board (ESB) should not be broken up into smaller parts or "atomised", but structural reforms are needed for the semi-state company, the Minister for Communications and Natural Resources, Noel Dempsey, has said.
Mr Dempsey, who is due to publish a green paper on energy later this summer, said the Government recognised the "strategic value" of maintaining the ESB as a strong and commercially viable entity.
"The Government does not in any circumstances favour the privatisation or atomisation of ESB. With that as a given, structural reform must deliver outcomes that in the best interests of consumers, the market and ESB itself," he said.
He was speaking at the Energy Ireland conference in Dublin's Burlington Hotel. It is understood that a report from consultants Deloitte suggests that some ESB stations either be sold off or leased out to competitors. But Mr Dempsey's latest comments suggest he may not support this notion.
The ESB's management has spoken on several occasions about its belief that the company should remain intact, mainly because in European terms it is a very small utility. However the management has shown a willingness to countenance the sale of small, older plants.
Mr Dempsey also said he was setting a new target of getting 15 per cent of the Republic's power from renewable sources such as wind, hydro, biomass and, potentially, wave energy. The previous target was 13.2 per cent.
In line with these developments Mr Dempsey said a strong emphasis on energy efficiency was needed. He said this was the cleanest and cheapest way to reduce greenhouse gas emissions.
While ruling out the privatisation of the ESB, Mr Dempsey said he recognised the importance of energy prices for national competitiveness.
Also speaking at the conference was Dermot Byrne, chief executive of ESB National Grid. He told the conference there was concern about ageing power plants in Ireland, although some of these were being replaced by newer units.
He said while wind was welcome as an additional source of power, the intermittent nature of it posed challenges. But in its favour, he said, it helped with fuel diversity.
Mr Byrne also presented slides to the conference showing Ireland's increasing reliance on natural gas. Virtually all new power plants over the last few years have been gas-fired.
Mr Desmpey has earlier pointed out that many countries produced more energy at home than Ireland because they had nuclear stations.
Mr Dempsey has rejected the idea of nuclear plants being built in Ireland.
The British government has ruled out any nuclear power in Northern Ireland as well, but British prime minister Tony Blair has hinted that he supports new nuclear stations in England, Wales and possibly Scotland.
