ESB turns down Offaly pleas for more funding

THE ESB has flatly refused to increase a €5m grant for the Midlands in the wake of its decision to close the power stations in Shannonbridge and Lanesborough.

The plug will be pulled on the two peat-fired electricity generating plants at the end of this year, a move which threatens about 80 jobs, though the ESB will be offering staff redeployment.

A number of councillors, led by Cllr Eamon Dooley, contrasted the funding being offered by the ESB with the €6m it invested in Offaly at the time of previous closures in Ferbane and Rhode.

Jim Murray, manager of the Midlands stations, said the ESB very much regretted the closure of the two power stations and said it was a very difficult decision for the company.

West Offaly Power in Shannonbridge has only been operating since 2005. It burns 1.2m tonnes of peat each year and its closure has knock-on effects on employment in Bord na Mona.

Mr Murray attributed the Shannonbridge closure to the refusal of planning permission by An Bord Pleanala for the burning of biomass at the plant.

The ESB hoped to convert the power station to biomass because the public service obligation subsidy was ending in 2019.

Mr Murray stressed that the Shannonbridge plant was designed and built for the combustion of solid fuel only and is not suitable for any other purpose.

The ESB now plans to demolish the building and because of its planning conditions, it has just two years to do so.

After its conversion to a 'brown-field' site it could be used for a number of purposes, including wind or solar generation, battery storage and a flexible generation unit.

Offaly company Lumcloon Energy already has a battery storage project in development at the site and Mr Murray stressed that the ESB no longer owns all of the land in the power station complex.

Cllr Dooley recorded his disappointment with the ongoing failure of the chief executive of the ESB to meet the council.
“On the other hand when they're looking for something they've no problem meeting us,” said the Fianna Fail councillor.

“That's not just in relation to the ESB. I could name a few other ones, including Bord na Mona.”

He likened Mr Murray's presentation to a homily at the funeral of a great GAA player who was never going to play again.

“I was wondering what the point of it all was.”

The councillor said the €3m given to Ferbane in 2000 after the closure of the power station there helped create 80 jobs in the Ferbane business park.

Now, the ESB was giving €5m to the Just Transition Fund which is being spread across up to nine counties, even though Offaly is the county most affected.

“I'm not sure of the logic of ESB giving that money towards just transition for closing two stations, one in Longford and one in Offaly without any add-ons or provisos.”

He said the ESB then sought to recover that money through the public service obligation levy process and he was not too sure how successful that was.

“Really it was giving it with one hand and taking it back with the other.”

He asked the ESB to extend the two-year period for decommissioning of the Shannonbridge plant to three years and in the meantime examine options such as gas and hydrogen generation.

Cllr John Leahy described the €5m grant as an “insult” to Offaly and said that amount of money just did not cut it across nine counties, especially when the ESB previously gave €6m to the Ferbane and Rhode areas where the population was just 26,000.

Cllr Ken Smollen asked if ESB employees would be redeployed on existing pay scales, Cllr Danny Owens stressed the board had a responsibility to Offaly and a special case should be made, and Cllr Sean O'Brien said the ESB had a corporate responsibility and was a huge part of the history of the county.

Cllr John Clendennen reminded the ESB that earlier this year the council had passed a motion calling for alternative uses of the Shannonbridge site, including a tourism link with Clonmacnoise, a remote working hub, and cultural and educational uses.

Responding, Mr Murray said the ESB is a commercial operation, operating in an extremely challenging commercial market.

“The €5m contribution to the Just Transition Fund is a significant contribution,” he said, adding that “multiple” power stations had been closed when previous funding was made available.

Mr Murray said the ESB was not leaving Offaly and its network business would remain, along with operations in Tullamore and Belmont.

Senan Colleran, another senior executive of the ESB who addressed councillors by video-link on Monday, backed up his colleague's assertion that the company was operating in a very challenging market.

“For us €5m is a very significant contribution. We don't see ourselves making separate contributions to councils,” said Mr Colleran.

“Our contribution is to the Just Transition Fund, which is a vehicle to support the regeneration of the Midlands.”

Following further criticism from councillors, Mr Colleran restated his view. “We do have an ongoing engagement with Offaly County Council and [that] will continue,” he said.

“We believe €5m is a very significant contribution given the challenges we face as a company and the industry we operate in.”

Cllr Dooley said the response from the ESB reminded him of Maggie Thatcher's infamous “no, no, no” because the company would not engage with the council, it would not detail community gain proposals on wind and solar farms, and will not extend its two-year decommissioning of the Shannonbridge plant.

He said if the ESB is successful in winning any compensation through the public service obligation process it could “maybe throw some of it our way”.