There are also concerns about workers' pensions.
An Offaly councillor says the ESB is taking the easy option by demolishing its plant in Shannonbridge and walking away.
Fianna Fail's Eamon Dooley is also warning workers must receive assurances that their pensions will be guaranteed by the government.
The decision from the ESB comes just 15 years after €240 million was invested in developing the site.
The Birr councillor says all options should have been considered: