Major Irish Power Plant Hits Red Tape

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - One of Ireland's largest proposed gas-fired power projects is in danger of not getting off the ground following allegations that the state-owned grid operator, EirGrid (Dublin) is deliberately holding up the project.

Lumcloon Energy (Tullamore, Offaly), the company behind plans to build the 297.2-megawatt (MW) plant, has secured a Brussels-based legal firm to raise its concerns with the Single Energy Market (SEM) Committee. It alleges that EirGrid is breaching European Union (E.U.) Competition Law by failing to provide a clear timetable to complete the DS3 Programme to allow Lumcloon proceed. It accused EirGrid of delaying implement new DS3 regulations and incentives that would allow the project to get €300 million ($398 million) project to get underway. It also complained that the seven year grid connection offered by EirGrid for the proposed plant in Ferbane, Co. Offaly, was far shorter than the usual 10 to 20 year grid connection contracts. Lumcloon is threatening to take EirGrid to court in Ireland and Europe unless a solution is brokered.

The DS3 Programme, or 'Delivering a Secure, Sustainable Electricity System', is an all-Ireland initiative to upgrade grids, polices and support mechanisms to cope with the addition of more renewable electricity to the electricity mix. This includes have modern, conventional power plants in place that can provide electricity quickly when wind power fluctuates.

EirGrid has denied Lumcloon's claims.

"EirGrid emphasises that the arrangements for system services in the power market, referred to in the statement, are the subject of a regulatory consultation process, and have not yet been finalised. EirGrid believes that the statement issued today on ehalf of Lumcloon Energy contains a number of serious inaccuracies. In particular it needs to be stated that EirGrid was specifically established to provide services to all customers, and to operate the transmission system securely, reliably and economically."

Lumcloon Energy said the plant is designed to operate in a flexible manner to support wind power.

It stated: "The Lumcloon plant is part of a new generation of flexible generation facilities required to operate at high efficiency when electricity demand is high. It can quickly reduce output to lower levels when demand is low. Wind levels can vary dramatically over short periods of time. Most conventional power plant either cannot respond fast enough to such changes in demand or are highly inefficient in costs and environmental terms. The Lumcloon plant will be able to reach full power within minutes if wind generated power falls. Most existing power stations take many hours to reach full capacity".

Politicians from Ireland's coalition government also have weighed in on the issue.

"I have read the legal opinion given to Lumcloon Energy which states that the actions of Eirgrid could be viewed as anti-competitive and thereby in breach of EU law," said Fine Gael Laois/Offaly TD, Marcella Corcoran Kennedy. "It is important that Minister Rabbitte, together with Eirgrid and the other State agencies involved in this project, come together to work out a solution to the problems faced by Lumcloon Energy. Lumcloon Energy has come to the table with a business plan that ticks all the boxes for job growth, as well as the promotion of renewable energy, and is ready to begin construction on the plant once the regulatory requirements are met. It is incumbent on the regulators and the State agencies to fulfil their role but also to ensure that they do not become a barrier to entrepreneurship."

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