ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)442
Vol.1981/0138

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COM(81)442 final
COMMISSION Brussels,29July1981
OFTHE
EUROPEAN COMMUNITIES FOROFFICIAL USEONLY
GenerolSecrétariat
Communication fromtheCommission totheCouncil
RequestfortheassentoftheCouncilunderArticle54,paragraph 2,
oftheECSCTreatytothefinancingoftheconstruction ofa2X300MW
coal-firedelectrical powerstationatHoneypoint,CountyClare,Ireland
bytheElectricity SupplyBoard,Dublin.
C0MC81)442final

NotetotheCouncil
SubjectsRequestfortheassentoftheCouncilunderArticle54*paragraph2,
of"theECSCTreatytothefinancingoftheconstruction ofa
2X300M~Icoal–firedelectricalpowerstationatMoneypoint,
CountyClare,Ireland,bytheElectricitySupplyBoard,Dublin.
TheElecftricitySupplyBoard(ESB),Dublin,hassubmittedtothe
CommissionoftheEuropeanCommunitiesanapplicationforalong-termloan
ofIF£100million (approx.144.5million ECU)forthefinancingoftheabove-
mentionedproject.
I.THEBORROWER
TheESBisanelectricityutilityorganisedonanationwidebasis
withanannualrevenueofIR£300'm.
Itisadecentralised organisation consistingofanadministrative
HeadOfficeinDublin,28GeneratingStations,12DistrictOffices -and
numerousareaofficesthroughoutthecountry.Centraladministration is
carriedoutthroughvariousdepartmentsorganisedonafunctionalbasisand
operatingunderthecontrolofaChiefExecutiveandsixDirectors-Commercial/Distribution ,Generation/Transmission ,Finance,Personnel,FuelandForward
projects-appointedbytheBoard.
TheESBhasanoverseasconsultancybusinesscoveringallaspects
oftheelectricitysupplyindustryincludingdesign,construction ,commissioning
an£operationofpowersystemsandplant,businessandadministrative systems
andfinancialmanagement .
Status
TheBoardwasestablishedforanindefinitedurationon28May1927
bytheElectricity (Supply)Act,1927.TheactivitiesoftheBoardaregoverned
bythatActandsubsequentamendingActs.TheBoardhasthelegalstatus
ofabodycorporate,maysueandbesuedandiscapableofpurchasing,
acquiringandholdingpropertyandperformingallsuchactsasarenecessary
fororincidentaltotheexerciseofitspowersortheperformance ofits
functions,assetoutbystatute.TheBoardisthesoleauthorityforthe
generationandsaleofelectricityinIreland.

-2-
Purpose
UndertheElectricity (Su.ply)Acts,thepurposeoftheBoardis-
?'togenerateelectricity andtotransmitthroughthetransmission
systemtheelectricity sogenerated,and
%todistribute,utiliseandselltheelectricitygeneratedandto
promoteandencouragetheefficientuseofsuchelectricity .
TheBoardisalsoauthorisedtosell-andsupplyelectricityappliances
andinstallations ,toengageinexternalconsultancyassignments ,andmoreover,
isresponsibleforfisheriesonriversusedforhydro–electricgeneration .
Management
TheESBismanaged "byaBoard,consistingoffull-timeChairmanand
ChiefExecutiveandtenpart-timemembers.
EightofthemembersareappointedbytheGovernment .Thetermof
officeisfixedbytheMinisterforEnergyandmaynotexceedfiveyears,
butmembersareeligibleforre-appointment .
Re-appointment ofmembershasbeenafeatureinthepastandthis
givesahighdegreeofcontinuitytotheBoard.
TheremainingfourplacesontheBoardarereservedforstaffmembers.
TheseareappointedbytheTaoiseach(PrimeMinisteroftheNationalParliament)
follovjinganelectionheldamongBoardemployees .
TheextentofGovernmentcontrol,whichisexercisedthroughthe
MinisterforEnergy,isintwomainareas-
%thecapitaldevelopment programmeandborrowingsrequiredto
financetheprogrammearesubjecttohisapproval.Thecapital
expenditurelimitwasraisedfromIR£700milliontoIR£1200
millionbystatuteinNovemberlast.Borrowingsalsorequire
'consentoftheMinisterforFinance.
:anannualreportandaccount,auditedbyaccountantsappointed
mbytheMinisterforEnergy,islaidbeforeDailEireann.
Staff
TheESBhasastaffofapproximately 12000.Thedesignofgenerating
stationsandbothdesignandconstruction oftransmission anddistribution
networksandstationsiscarriedoutbyESBstaff.
Amanpowerrationalisation schemewasinoperationsincre1971
whichreducedstaffnumberssubstantially .Manpowerisnowbeingaugmented
tomeetthedemandsofacontinuinghighgrowthinthetotalactivitiesof
theorganisation .
2251/81en

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SignificantStatistics (31.3.80)
•Numberofcustomers 1043000
Generatingcapacity 2062.5MW
MaximumSystemDemand(7/9/80) 1971MIÍ
Revenuein1979/80fromsaleof856OGVJHwasoverIR£300m.
II.THEPROJECT
Thepowerstationwillbesituatedonacoastalsitewithverydeep
watersandshelteredberthageonthenortherncoastoftheShannonEstuary
atMoneypoin^*
Theprojectcomprises s
-civilengineering works,includingtheconstruction ofapproximately
2000mofmarineembankmentanda350mlongberthingstructure
toreceivecolliersof160000dxrt
-plantcomprisingtwodrumtypecoal-firedboilers,electrostatic
precipitators ,two300MWturbo-generators ,coalstorageand
transport ,facilities,two25000tfueloilstoragetanksand
otherequipment.
Thenewstationisplannedforbase–loaddutyandwillbeconnected
tothenationalelectricitygrid.Theplanthasbeendesignedtomeethigh
international environmental standards.Provisionismadeforthelater
installation offurthercoal-firedunitsonthesamesite.
ItisESB'sgeneralpolicytoinvitetendersfromaverylarge
numberofinternational firmsforallitsinvestmentprojects.Inthis
casemostorderswillbeplacedwithforeignfirms.
Totalcostoftheprojectincludinginterestduringconstruction
andpriceincreases,isprovisionally estimatedbythepromoterat
IR£500million.
OutlineConstruction Programme
Startsitedevelopment June1979
Startplanterection January1982
Commercialoperationfirstunit •October1985
CommercialoperationsecondunitOctober1986
225Î/81en

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III.ECONOMIC ASSESST'IEI'TT
1.Inorder"tokeepcoaloutputfromfalling,sufficientcoalburning
capacityisrequired^thiscanonlybeachievedbystabilizingcoalsales,
whichinturnrequiresadditionalinvestmentinnewcoal–firedpov/erstations.
2.Theconstruction ofa600Ml'pouerstationwillhelpmeettheexpected
growthinelectricity demandinIreland.TheESBgenerationdevelopment
programmeforthe1980'sisbasedonlong-termgrowthrateinelectricity
consumptionaveraging8.5/^perannumoverthedecadejthisisconsistent
withafuturegrowthrateinGNPofabout%in'theshort-termrisingtoif
inthelongerterm,withanintensiveenergyconservationeffort.
3.Atpresentimportedoilrepresents 37/-ofESBenergysources.To
spreadtherisksassociatedwithsecurityofprimaryenergysupplyandwith
thepriceofoil,diversification toalternativeenergysourcesisakey
elementofESBforwardplanning.Tihileallproposednewplanthassome
fueloptions,themainthrustoftheBoard'seffortstoachievediversification
isthroughcoalpljintfrom1985onwards.
TheMoneypointcoalfiredgeneratingstationisakeystoneofthis
diversification programmefrom1985onwards.Asecondmajorcoal–fired
stationisintheplanningstageatpresentanddependingonloadgrowth
andfuelavailabilitythisstationcanbecommissioned from.3988/89onwards.
Theimpactoftheenergysourcediversification programme,assuming
nonativesourcesofoilorgasareavailable,willbetoreducedependence
onimportedoilto40A'byT987/88andto16%by1990/9"'•Bythelatter
date,itisexpectedthat58/^ofgenerationcapacitywillbefuelledby
coal.
IV.CONCLUSIONS
Theprojectcontributes tomaintaining coaloutputandthesupplyof
energywithout,useofhydrocarbons andisthusinaccordancewiththeenergy
poiicyobjectivesoftheCommunityandtheobjectivessetoutinArticle54,
paragraph 2oftheECSCTreaty.
*AsESBcannot,atthemoment,givedefiniteindicationsofthe
quantityofCommunitycoaltobeburnt,theECSCloanwillonlybe
disbursedwhenitisconfirmedthatsufficientquantitiesofCommunity
coalwillbeConsumed.
TheCommissionhasinprincipledecidedtoextendtheloanrequested.
Inconsequence ,inconformitywithArticle54,paragraph2,oftheECSC
Treaty,theCommissionrequeststheassentoftheCounciltothegranting
ofaloanofIR£100million(approx.millionECU)totheElecftricity
SupplyBoard,Dublin(Ireland).
225V81en