Energy regulator taken to task over risk to €255m. Mayo power plant

A MAYO Oireachtas member has warned that the viability of €255 million renewable energy project in Killala is at risk following the decision of the energy regulator (CRU) not to grant a 100% Certificate of High Efficiency to the promoters of Mayo Power.

The Fine Gael Senator is demanding that the regulator appears before the joint Oireachtas Committee for Communications, Climate Action and Environment to explain its decision to issue a Certificate of High Efficiency to Mayo Power with a rate of 18% - compared to the 100% issued previously.

"I am demanding that the CRU (regulator) be brought before the joint Oireachtas Committee for Communications, Climate Action and Environment and explain how it has done its business. I have contacted Committee Chair, Hildegard Naughten TD, in this regard.

"Mayo Power is a very important project for North Mayo and is also of national importance as it will help Ireland achieve its targets on renewable energy. This latest development calls into question the viability of the plant.

"There are a number of questions to be answered by the regulator in relation to this licence, including why there was such a long delay in making a decision. At the very least, it is unsatisfactory and the regulator's office is actually contradicting itself by now rating the project at 18%.

"I want to know why regulator has given the certificate at a rate of 18% as opposed to 100% which is what this project had previously and that was the certificate that was in place up until work stopped on the site in 2016 which wasn't due to any technical considerations but rather a financial issue with one of the banks.

"It is even more ridiculous when you consider that but for the financial glitch this project would be up and running today on the basis of a 100% Certificate.

"The promoters applied to the CRU for a renewed consent last May as they did to ESB Networks, EPA and Mayo County Council for an extension of the planning permission.

"These other Government bodies and agencies had no problem renewing the consents. The energy regulator has dragged its feet and has not explained how it has changed its view considering that the project materially is the same project as before and the regulations have not changed.

"How can we attract business, investment and jobs into Mayo if this is how the energy regulator is doing its business?

"For North and East Mayo, the regulator's decision means, at the very least, we are going to see investment in jobs that this new power plant would bring being postponed. It is also a blow to local beef and suckler farmers who saw a possible alternative income stream in growing biomass to sell to Mayo Power.

"We also have planning permission for a data centre at the site and in order to promote and develop a data centre we have been told that a green energy plant like the one proposed by Mayo Power would be a significant selling point for big data firms such as Facebook and Google.

"On a national level, this decision is also inexplicable. We have national targets for renewable energy and electricity and we know that we are facing fines by Europe because we are not hitting our targets. This is a state-of-the-art, 45-megawatt biomass-fuelled combined heat and power plant.

"I am very annoyed and angry at the regulator over how this has been handled knowing full well what this means for north and east Mayo and for the Ireland's renewable energy targets. Whatever reason the regulator has for issuing a certificate of only 18% it is not apparent to me or the promoters of Mayo Power.

"This is a golden opportunity for us in north Mayo and the danger is that this project may now slip through our hands due to the manner the licence has been dealt with.

"Every other state agency saw the merit in renewing consents, licences and permissions and the energy regulator, who is charged with rolling out renewable energy, will have questions to answer when it comes to 2020 when we don't hit our targets and our country is being fined for not making these targets.

"There are a number of questions to be answered, both locally and nationally, and I will be demanding that we get answers," added Senator Mulherin