Power supplies

An emergency situation is developing in relation to the production and supply of electricity, and the Minister for Communications…

An emergency situation is developing in relation to the production and supply of electricity, and the Minister for Communications, Marine and Natural Resources, Mr Ahern, is not responding in a sufficiently vigorous fashion.

Already this year, there have been 19 dangerous "amber alerts" because of a shortage of supply. Moreover, with demand for electricity increasing, the prospect of power failures next winter, when industrial and domestic demand peaks, has become a serious threat.

It is now four years since the ESB warned the Government that a surge in demand for electricity could lead to power-cuts and blackouts. As a result, two emergency generators were imported to bridge the gap in supply. But the Government failed to take long-term decisions. In addition, efforts by the EU Commission to encourage deregulation of the electricity market and the construction of new power plants have had limited success.

ESB dominance in the marketplace is a problem. It has deterred international investors and affected the pricing system. A confidential letter from the National Grid, which operates the supply network separately from the ESB group, recognised this and described the electricity market as resembling an "inefficient oligopoly". It said the price-setting capacity of the ESB, through its control of market share, must be tackled.

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The rising price of fossil fuels should encourage the Government to favour the use of renewable energy sources. Progress has been painfully slow and companies using wind power have complained of discrimination. Although Ireland has an enormous wind resource, it lags behind other European states in exploiting it. Last week, a report favouring community-based wind farm projects, in association with commercial developers, was presented to the Minister for Community, Rural and Gaeltacht Affairs, Mr Ó Cuiv.

In the short-term, such schemes will not resolve the emerging power shortage. Large-scale generating plants, or the construction of new electricity inter-connectors, are required if the demands of the economy are to be met and household supplies safeguarded. Last month, blackouts were avoided only through the use of an existing North/South inter-connector. Mr Ahern has spoken about the possibility of building a second such cross-Border facility but plans may have to be abandoned for the construction of two inter-connectors across the Irish Sea. Such projects are the key to a more balanced network. They would permit the export, as well as the import, of electricity. But the Minister must display greater urgency in making things happen.