The ESB is to expand its operations in the British energy market with a multi-billion euro investment in several new power plants.
ESB International intends to spend up to €4 billion amassing a portfolio of power stations over the next decade in a bid to become a major player in the British electricity market.
The move is predicated on a projected shortfall in generation capacity in Britain after 2013 which the company says provides it with an opportunity to expand its business base in the United Kingdom.
The ESB has also agreed with the Commission for Energy Regulation to reduce its domestic market share to 40 per cent, as part of the deregulation of the Irish market.
The company’s UK acquisitions include the construction and operation of an 860-megawatt, gas-fired power station at Carrington, near Manchester.
The plant, which is due to become operation in 2013, will generate enough electricity to supply one million homes.
In a separate venture with Scottish and Southern Energy, ESBI is completing the construction of an 840 megawatt gas plant at Marchwood near Southampton. The plant is due to become operational at the end of next year.
The ESBI also has a 50 per cent stake in a 350 megawatt gas-fired plant at Corby in Northampton.
Speaking at the unveiling of the company’s plans at the Irish embassy in London today, ESB chief executive Padraig McManus said the expansion was mainly focused on Britain.
ESBI also has a strong presence in the Iberian market where the company recently announced the development of another power plant in northern Spain.
Mr McManus said: “ESB earlier this year announced a €22 billion investment programme and identified €4 billion to fund expansion overseas.”
“Our initial acquisitions are in fast-build, highly efficient modern gas technology, but our longer-term plans will involve a high level of renewable energy,” he added.
ESBI plans acquire a 200-megawatt wind energy capability in the UK market by 2020. The company has opened offices in London to develop its trading capability in the United Kingdom.
