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ENERGY INTERNATIONAL
Aug/Sept 2011 www.esb.ie/em
ESB signs deal with International Finance Corporation
Asset Development
ESB’S CARBON SOLUTIONS team, in conjunction with a number of European energy companies and banks, has signed a deal with the International Finance Corporation (IFC), the AAA-rated private sector financing arm of the World Bank, to purchase carbon credits from a portfolio of Clean Development Mechanism (CDM) projects.
The deal will provide ESB with a high-quality source of carbon credits that can be used for its regulatory requirements at a significantly discounted price or sold on the market for profit. Carbon credits are required by ESB in order to fulfil its commitments under the EU Emissions Directive. To date ESB has received most of its credits free from the government, but this will change in 2013 when the company will be required to buy its full complement of allowances.
This deal represents the start of a strategic partnership with this major financial player in the developing and emerging power finance market. As well as the cost savings benefit, it also opens up a significant learning opportunity for the company both in terms of new markets and new technologies, as the IFC will be looking at a variety of projects globally. It will also help to raise ESB’s profile internationally.
As the business development phase of this deal may take two to three years, the Carbon Solutions team will be required to closely manage the relationship with the IFC in order to ensure the company gets the optimum amount and type of credits. This management is extremely important due to the increasing diversity of regional carbon markets/initiatives and types of carbon credits being generated. In the future, this diversity will mean that not all types of credits will be eligible for use in Europe.
Emerging Businesses Manager David McNamara commented, ”The IFC deal is a key part of our strategy to be a ‘one-stop shop’ for all project-based and structured carbon deals for ESB.”
Asset Development Manager John McSweeney also noted, ”Developing a partnership with an organisation like the IFC, the funder of choice for many clean energy projects in the developing and emerging market world, is key to the continued success of the carbon solutions business and the growth of our international operations.”
Coolkeeragh donation
New Safety Rules for Generation Operations
Generation Operations
A REVIEW OF the Generating Station Code of Safe Practice and Electrical Safety Rules was initiated by Generation Operations Senior Management Team in 2007. The objective of the review is to make Generating Stations safer places to work for all ESB staff and contractors. This is Generation Operation’s number one objective. The review also takes into account developments in the safety area external to ESB, HSA requirements and updated legislation.
A Review Group was formed to carry out this review and implement the recommendations. The three main recommendations which were approved by the SMT are:
- Locking points of isolation, except where not practical
- A common Permit to Work system for ESB staff and Contractors
- A Computerised Isolation and Permitting System
The Safety Rules Review Group consists of Trevor Flynn, Kevin Enright, Kevin Grace, Denis McCabe, Donal Brogan, John Alexander, Martin Dooley, Liam Gilbride, Pat O’Malley and Mark Lawlor.
Training in the new Rules has taken place in the first station, Lough Ree, with a view to the station going live in September. Following a two month bedding-in period, where valuable lessons can be learnt, the Rules will be rolled out to all remaining stations over the coming year. The new Rules will apply from the Go Live date in each station. For a time some stations will be operating on the old Rules and some on the new Rules.
Consultation on the proposed changes with staff included a series of Station Briefings, an opportunity for feedback on the draft Rules and the formation of an Internal Quality Assurance Group comprised of station operations and maintenance staff. Also an external Quality Assurance Consultant was employed to independently validate the Rules.
The new computerised Isolation and Permitting system is NiSoft Eclipse. The system which produces documents such as the Proof of Isolation, the Permit to Work and a Risk Assessment, will provide the following benefits:
- Improves safety – interlocks dependant documents
- Improves efficiency – no handwriting; existing documents can be copied
- Reduces workload – no need to isolate more than once
Training is provided for station staff as required. Persons in Charge of Operation and Persons in Control of Work receive a three day course in the new Safety Rules along with training in the NiSoft Eclipse system, while all remaining staff receive a half day Safety Rules Awareness Course.
Grouse Lodge Commissioning
Asset Development
GROUSE LODGE, THE first of three windfarms to be commissioned in 2011, will begin commercial operation this summer. The 15MW project, which is located south of Foynes in Co. Limerick, was designed and developed by ESB and is connected to the Grid at Rathkeale 110kv station via a 10.5 km 38kV connection comprising both line and cable sections. The grid connection was built by ESB Networks and energised on schedule in early April.
Aertech was appointed Owner’s Engineer and the project commenced in September 2010. Civil Works design was undertaken by ESBI’s Civil & Structural and Environmental departments while the HV team led the electrical work.
Nordex was awarded the turbine supply contract and six N90 machines have been erected and are presently being commissioned. The machines have a hub height of 70 metres and a tip height to the top of the rotor of 115 metres.
Building a wind farm requires input from a wide range of teams within ESB - Technical, Environmental, O&M, Legal and Insurance. All wind projects are delivered using the Project Delivery Model (PDM) that is now standard for every significant generation project and the Project Management Office is central to implementation. Safety is paramount and much work has been completed over the past two years to embed best practice – leveraging learning from the use of contractors in other parts of the business. Notably, the entire Grouse Lodge project was completed without a safety incident.
Commenting on this latest addition to ESB’s wind portfolio, Asset Development Manager John McSweeney said, “I am delighted that Grouse Lodge will enter commercial operations shortly and will contribute to ESB’s strategy of a balanced, low-carbon generation portfolio. Congratulations to all involved.”
