ANNUAL REPORT 2012

Managing Director’s Review

Business Review - Powergen

Powergen manages and operates Bord na Móna’s existing power generation assets, including the Edenderry power station, the Cushaling peaking plant and the Bellacorick wind farm. The business also has a number of projects under development at different stages of maturity. These will add substantially to Bord na Móna’s electricity generating capacity over the next decade.

Powergen

Challenges

Delivering Future Projects
Powergen is pursuing two major wind farm projects at Mount Lucas and Bruckana. The key challenge was to obtain required approvals and subsidiary planning consents relating to these projects and to secure grid connection offers.

Optimisation of the Edenderry Power Station
Following a major overhaul of the Edenderry power station turbine last year, Powergen sought to ensure high availability and maximum output from the station, while also continuing to increase the biomass co-firing rate.

Achievements

Operational Growth
Turnover increased by 17.9% to €71.3 million, while biomass co-firing increased from 13.5% to 15.1%. The levels of renewable electricity (RES-E) generated by Powergen increased from 14.4% to 16.6%.

Developmental Success
Planning consents were obtained for a new access road at Mount Lucas, while grid connection offers were signed for both Mount Lucas and Bruckana wind farms. Planning consent was also obtained for an increase in road deliveries of biomass to the Edenderry power station and for additional biomass storage facilities on site.

Progressing Future Projects
A joint venture company was established with ESB Wind Development Limited for the development of the first phase (172 MW) of the wind farm at Oweninny, Co. Mayo. Planning and design matters were also progressed.

A high level assessment, encompassing environmental, planning and temporal constraints was carried out on Bord na Móna’s cutaway peatlands. This was to ascertain their suitability for the construction of large-scale onshore wind farms as part of renewable energy export opportunities.

Energy Efficiency
In its efforts to maximise performance, Powergen targeted energy efficiency savings of 4.3 GWh during the year. This was exceeded by the Energy Performance Contracting unit which delivered savings totalling 6.0 GWh.

Commitments

Developmental Agenda
The Powergen business remains fully committed to pursuing its developmental agenda and to the creation of a diversified portfolio of generating assets with low carbon intensity.

Government Targets
As part of that agenda, Powergen will meet the Government’s target of 30% co-firing with biomass at the Edenderry power station by 2016.

Wind Power
The business is committed to developing the 80 MW Mount Lucas wind farm, the 40 MW Bruckana wind farm and the first phase of the Oweninny wind farm. Following the high level assessment of the feasibility for development of onshore wind farms, the potential to supply renewable power to the domestic, UK and other mainland European markets, in the context of developing regional electricity market integration, will be explored further.

Market Opportunities
Powergen is committed to seeking out market opportunities for improving the efficiency of energy use, and helping Bord na Móna meet its future efficiency obligations under the Better Energy Programme, an Irish Government scheme administered through Sustainable Energy Authority of Ireland (SEAI) which encourages homeowners and businesses to improve the energy performance of their homes and business premises by incentivising the cost of various upgrades.