Soaring inflation puts ‘vital’ new gas-fired power plants at risk

Developers call on regulator to index-link payments with inflation while Eirgrid warns that the highest risk of blackouts is expected to occur between early January and mid-February

A full cut-off of Russian gas to Europe this winter could result in a 12 per cent reduction of gas flows on the islands of Britain and Ireland. Picture: Getty

A number of large gas-fired power plants deemed “vital” by the government may not be built due to soaring inflation making their construction commercially unviable, senior energy industry figures have warned.

It comes as Ireland is struggling with short and medium-term energy supply issues.

Eirgrid, the electricity grid operator, warned last week that the gap between electricity demand and supply is likely to get worse, and that the country faces a high risk of blackouts ...