The ESB is to build a new €45 million windfarm at Mountain Lodge, Co Cavan, which will produce enough power to supply 28,000 homes as the company increases its presence in renewables.

While the ESB's critics claim it maintains a dominant position in the Irish energy market, the ESB is keen to build up its renewable energy base as the Republic moves firmly in the direction of greener forms of energy.

The project is being developed by ESB's Hibernian Wind Power subsidiary in conjunction with a local partner, Galetech. Some 19 wind turbines supplied by General Electric will be installed on the farmland site.

The farm is scheduled to be finished by mid-2008 and the facility will generate in excess of 28 megawatts of electricity for the national grid.

ESB chief executive, Pádraig McManus, said: "This significant investment in clean technology represents ESB's continuing commitment to renewable energy sources. This adds to ESB's growing portfolio of investments in windfarm technology and now brings our total generating capacity from the source in excess of 100 megawatts."

He said the development fitted in with the objectives on renewables outlined in the recently published Green Paper on energy, published earlier this month along with another report by consultants Deloitte.

The Government rejected proposals put forward by Deloitte for the partial break-up of the ESB and a restructuring of the electricity supply market, which Deloitte claimed would improve efficiency and bring down prices.

However, the Minister for Natural Resources, Noel Dempsey, rejected the proposal to fragment the company.