The European Investment Bank is lending EUR 175 million to the Electricity Supply Board (ESB) in Ireland. towards the construction of a 400MW natural gas-fired power plant alongside an existing 525MW plant at Aghada in east Cork.
The new power generating facility at Aghada will be one of the largest and most efficient in Ireland and will help meet the country’s growing electricity demand from the residential and business sectors.
Plutarchos Sakellaris, EIB Vice President responsible for lending operations in Ireland, said, “Promoting energy efficiency is a priority for the EIB. The new generation technology which will be employed by ESB at Aghada involves high thermal efficiency that could offer energy efficiency improvements of up to 20%. Moreover, the natural gas turbine will contribute to security of energy supply in Ireland and by replacing older, less efficient power plants will help to meet the country’s goals for emissions reductions.”
Energy - reduced environmental impact, increased efficiency, competitive and secure supply- heads the EU agenda and Ireland has set ambitious targets for the sector.
As well as ensuring energy efficiency and environmental benefits, the new plant in Aghada, east Cork will bring economic advantages for the region. A total of 500 contractor employees will work on the site during construction and after this time the two plants at Aghada will be operated to best practice standards by a combined workforce of 80 people. The project will serve the all-island Single Electricity Market which was established in November 2007.
The EIB has been a financing partner for ESB electricity generation, transmission and distribution projects since the 1970s.
Background Notes:
European Investment Bank activity in Ireland
From 2003 to 2007 the EIB signed loan contracts totalling EUR 2.6 billion to support key investment in Ireland. In 2007 alone, the EIB signed over EUR 345 million to support investment underpinning the Irish economy, financing projects helping regional development, strengthening the security of energy supplies and modernising the transport system, as well as supporting the activities of small and medium sized enterprises. In 2008, the EIB lent a further EUR 200 million to develop Ireland’s international transport hub, Dublin Airport, to encourage the country’s economic growth.