Kyoto obligations on greenhouse gas could be fulfilled by closing coal-fired Moneypoint
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WITH the economy in recession the restoration of its competitive edge has been highlighted time and again as absolutely central to any economic recovery.
Businesses across the country have already secured pay cuts or pay freezes from staff, while rent and land costs have fallen. A sharp drop in commodity prices since the middle of 2008 has reduced many input costs for manufacturers, with one notable exception.
While gas and electricity prices are set to drop from May 1, this will mark the first serious reductions this year and Irish energy prices remain a serious burden on all sectors of society.
While the ESB sets about solving problems which do not exist, providing a network of charging stations for electric cars, industry and business continue to pay above the odds for their energy supplies.
The regulator has pursued a policy of high prices for power in the belief this will attract new entrants and boost competition.
But for industry that is little comfort, particularly when the long-term strategy being promoted by Government is for a greater dependency on wind power, a source which the regulator admits will need expensive subsidies.
One of the major arguments advanced for this strategy is that we need to reduce our greenhouse gas emissions.
However, the ESB has the power to enable us to meet our Kyoto commitments at a stroke, simply by closing the coal-fired plant at Moneypoint.
With Shell now developing our first major gas field in a generation, this closure could be achieved with little risk to security of supply.
Gas is by far the most efficient source of power generation, one that would allow us to reduce prices for consumers rather than embark on a strategy which will see costs rise even further and put us at an even greater disadvantage on the competitive front.
- pat boyle
