An Bord Pleanála has refused to grant substitute consent for a controversial wind farm development in south Galway.
The State has already amassed fines of over €17m as a result of an ongoing failure to ensure proper standards were adhered to at the development at Derrybrien.
The 70-turbine development on the Slieve Aughty mountains was built and is operated by a subsidiary company owned by the ESB.
During the construction phase in 2003, a massive landslide occurred, pushing thousands of cubic metres of peat down the mountain.
In 2019, the EU's Court of Justice found Ireland was in breach of environmental safeguards in relation to the construction of the wind farm.
Galway County Council then told the ESB to seek Substitute Consent - effectively retrospective compliance with the EU Directive on Environmental Impact Assessments.
However, An Bord Pleanála has determined that remedial works carried out since the landslide did not "fully mitigate the significant environmental effects" that occurred.
It says the extent of the damage was "clear, profound and unacceptable" and cannot be fully mitigated.
The board was of the view that early stage construction works had contributed to unacceptable direct or indirect impacts on the environment. Works carried out after the landslide did not render these impacts acceptable.
Daily fines of €15,000 against the State have been mounting since the EU Court ruling in November 2019.
To date the State has paid €13.22m in fines to the European Commission in relation to this case.
A €5m lump sum fine was paid in January 2020 with the payment of three instalments following.
It is understood European Commission officials are reviewing the decision by An Bord Pleanála.
In a statement the ESB said it "notes the decision by An Bord Pleanála with respect to a substitute consent application by Gort Windfarms Limited for Derrybrien Wind Farm".
The company said it was "disappointed with this decision" and that it would be "studying the details before deciding on the next steps to take".
The Department of Housing says that it is also reviewing the Board's decision.
It says the Minister is precluded from exercising any power or control over individual planning cases.
The Department says it has no view on what course of action the ESB should now pursue.

Locals welcome decision
People living close to the wind farm in south Galway have welcomed the decision by An Bord Pleanála.
Martin Collins, of the Derrybrien Community Group, said he the ruling was morally, environmentally and legally correct.
Mr Collins, who has spent almost a quarter of a century monitoring the development, said it was a wonderful day for the community.
He said the ruling vindicated the concerns people in the area always had, and added it was clear that the environment had been severely damaged by the development.
However he expressed regret that the damage could not be repaired.
Mr Collins said the decision sent out a message that "you can’t just go into a place and wreck it with power and money".
He said there was an onus on the Government to ensure that the views of local people were properly considered in future developments of this kind.
David Murray, of the South Galway Flood Relief Committee, said a proper analysis of the environmental impact caused by the wind farm was long overdue.
Locals contend that alterations to the topography of the mountain in the last 20 years have increased the risk of flooding on lower ground.
Mr Murray said drains dug after the landslide had an impact on the hydrology of the area.
"The frustrating part of the process is that all through this we’ve tried to engage with the ESB but with no success… that was never part of the agenda and it still isn’t".