When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?
You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "
I'm sure we could build a Turlough Hill plant as efficiently as anyone else. Cost control in infrastructure projects has improved hugely in recent years and the likes of ESBI have a track record of delivering successful commercial projects in the international marketplace. My point is that the benefit would simply not justify the cost. If Turlough Hill were to be built today the cost would be enormous, i.e. we're talking in billions not millions. The benefits to the consumer and the state simply would not justify that kind of expenditure.
I doubt it would cost billions, its a relatively simple plant, the earthmoving and tunneling would be the biggest part of the construction costs. Remember, it was built at a time when every state construction project was referred to as "Treasure Island" so extending original cost to current value is not valid. Another Turlough Hill should be seen as providing security of supply - if we are going down the renewable route, we need some way of smoothing the peaks and troughs and pumped storage is a good way of doing so - if we have a suitable site.
wombat, I'm not sure if you fully appreciate the scale of the Turlough Hill project. The earthworks and tunnelling alone would cost hundreds of millions.
I'm not sure what you mean by "Treasure Island", but if we are to compare current day cost with the original cost it would be necessary to factor in issues such as health and safety. The number of fatalities that occured on the original project would be unthinkable today. Applying accepted health and safety practices to this project would add considerably to the cost. There was a workforce of hundreds camping in the valley during the construction - you think that would be permitted to happen today?!! Then there is planning. There would be massive resistance today from environmentalists to such a project due to the kind of locations you would be looking at. Planning would take years and would be very costly. That simply wasn't an issue in the 1960's.
Building another Turlough Hill makes no economic sense and it is simply not required. It's telling that not even developers in the renewable sector are looking for something like this. Companies like Mainstream are instead lobbying for substantial interconnection infrastructure with the UK and the continent.
We will need these plants at some point in the future. Why not build them now?
As we add more variable renewable power to the Irish grid, pumped storage hydro looks inevitable. The fact is PSH will add to the cost of renewable electricity, but for small renewable companies, the large capital cost and long payback times makes it an unattractive investment. How long can we just keep building wind farms (and someday wave farms) and connect them to the grid, without storage?
PSH is between 70-85% efficient. Ireland has an ideal climate to reach the upper efficiency; less water evaporation than warmer countries, and lots of rain falling on the upper resevoir. 35 years later and Turlough Hill is still going, so something like this needs to be seen as a long term investment, that will be profitable.
Last edited by thevoice; 19th April 2009 at 02:31 PM.