A new 400 megawatt power station could be built in the north-west as the Government seeks to spread key infrastructure into the regions.
The Department of Communications has decided to commission a feasibility study and costbenefit analysis on the idea. Consultants will also be asked to assess the idea of building a natural gas pipeline to Donegal town via Sligo.
Among the towns considered for any new power station are Bellacorick, Ballina, Sligo, Donegal, Castlebar, Claremorris and Ballaghaderreen. The consultants will be asked to liaise with the Commission for Energy Regulation. The issue of security of supply and development of competition in the power sector will also have to be considered. After examining these issues consultants will suggest the best way to finance such a power station.
The benefits to the local electricity grid should also be considered, state tender documents from the department.
"The potential benefits to the local electricity grid of the development of a new plant and any consequential grid reinforcements should be considered".
The tender documents mention the Corrib gas field which is likely to be play some part in supplying any new pipeline. However, they don't state that the pipeline and power station are dependent on the Corrib field being brought into production.
The most recently built power stations in the Republic are situated in western Ireland. Aughinish Alumina has built a new plant in Co Limerick, while Tynagh Energy is building a plant in Tynagh Co Galway.
Both plants have guaranteed deals to supply output to the ESB over the next decade. This type of deal is very attractive to investors, including utilities and banks. The quoted company Viridian is also building a new gas fired power station in north Co Dublin at Huntstown.
Independent TD Marian Harkin this week criticised plans to extend the gas pipeline beyond Mayo to the north-west. She said Government had studied this idea five years ago but nothing had happened since.
The tender documents acknowledge that a 2001 study did study the idea of a gas pipeline extending into the north-west. The 2001 study suggested such a plan might require either an increase in gas transmission tariffs or an extremely high level of grant aid.
