Official opening of Coolkeeragh ESB Power Station Co Derry
Mayor, Minister Smith, distinguished guests, ladies and gentlemen; it is my pleasure to be with you here today to mark the official opening of this fine new Combined Cycle Gas Turbine (CCGT) power plant, at the site of the former Coolkeeragh oil-fired power station. I am particularly pleased to be participating in this important event together with my colleague Angela Smith MP, the Northern Ireland Minister for Enterprise Trade and Investment.
I would like to join Minister Smith in congratulating ESBI and Coolkeeragh Power Ltd. on their achievement. This 400 megawatt merchant plant, which is a major investment in the electricity infrastructure of Northern Ireland, uses the latest technology to generate electricity from natural gas.
I am advised that the new CGGT will be approximately twice as efficient as the plant it replaces with the result that Northern Ireland will benefit from cleaner and lower cost energy.
I am also aware that the Coolkeeragh plant is creating local business and employment opportunities. Over 700 people, mainly from the local area, were involved in the construction of the power plant and 40 long-term jobs have been created to operate and maintain the new plant. Locally based subcontractors and suppliers have secured contracts valued in excess of stg£30 million in connection with work on the site. In addition, I understand that the station will also help local businesses in the north-west with supply contracts worth up to stg£7 million per annum.
Today’s event can be viewed against a backdrop of on-going co-operation between North and South in the energy sector. The fruits of that co-operation are now visible. We can see the contribution that Southern energy companies are making in Northern Ireland and likewise the involvement of Northern companies in the South. The Huntstown Power Plant, a subsidiary of Viridian, opened a CCGT power station in North Dublin in 2003 and plans to have a second plant operational at the same site in 2007.
The construction of the Coolkeeragh plant, apart from its obvious electricity value, also opened up the possibility to develop Northern Ireland’s natural gas infrastructure. The BGE NI North-West gas pipeline from Belfast to Derry, which was commissioned last year, serves the Coolkeeragh power station and also enables the development of gas networks in 5 towns adjacent to the route – Ballymena, Ballymoney, Coleraine, Limavady and Derry. Construction has commenced on the gas networks for the first of these towns and BGE anticipate supplying gas to their initial customers before the end of the year.
The South – North pipeline, from Gormanstown in Co. Meath to Belfast is due for completion next year and there are 5 more towns close to this pipeline in which BGE NI will develop gas networks – Antrim, Armagh, Banbridge, Craigavon and Newry. All of this represents a significant investment in Northern Ireland’s energy infrastructure.
Another major North – South infrastructure project is the planned second electricity interconnector. When operational, this second interconnector will increase the power transfer capacity between North and South, facilitate increased trade in electricity and further enhance security of electricity supply and competitiveness. The island will then have a very robust electricity network capable of delivering long-term benefits to both economies. The two System Operators are currently developing proposals on route options, planning permissions and other technical issues.
Since my appointment as Minister with responsibility for Energy, I have made it one of my priorities to continue the efforts of my predecessors in securing the development of the all-island energy market. While much remains to be done, both Governments are encouraged by the widespread and enthusiastic support for the project and we are confident that the challenges ahead will be met. The establishment of the Single Electricity Market by July 2007 is, of course, a key priority in this regard.
So today’s event represents another important step on the road to building closer links between the two markets, which ultimately benefits consumers North and South. The plant is well positioned to meet the needs of a developing competitive all-island electricity market.
Last night, Minister Smith and I met in Limavady to review progress on all aspects of the all-island energy market.The establishment of a Single Electricity Market by July 2007 has already been identified as a key priority and we recognise that, to implement the market, matching legislation will need to be enacted simultaneously in both jurisdictions. We reaffirmed our commitment to work together to ensure that we do our utmost to achieve that objective.
In conclusion, let me say that great credit is due to ESBI, Coolkeeragh Power Ltd, those who constructed the station and the local representatives and community who brought this project forward to fruition. The completion of Coolkeeragh Power Station is an achievement in which you can all take pride. I wish it every success for many years to come.
ENDS