SEM vital to future of Irish energy

The single Electricity Market, established last November must work for the long term if Ireland is to attract more players into the generation market, according to ESB's Group Finance Director, Bernard Byrne. Addressing an Irish Times organised conference, Mr Byrne said the long term investment in generation assets requires a successful long term pool market for electricity.

"If the market sends out the right signals, then the necessary investment will take place," he told the conference in Dublin. In addition to the success of the market the development of interconnection was another vital component in opening up the Irish electricity market to international competition.

Bernard Byrne told delegates that if all the proposed windfarms were connected Ireland would have the highest proportion of wind energy on its network in Europe. Ultimately, he said, wind could account for up to one third of the national demand for electricity. The potential for off shore wind projects was also great, he added although the costs in comparison to gas fired plant onshore are still an issue in relation to development.

The cost of the new gas fired plant under construction at Aghada plant is currently around a quarter of the costs of developing the same capacity in offshore wind farms.