Ms Jenny Pyper:

Northern Ireland's dependence on three stations is a historic position. There are two in the east of the province, where the population demand is, and there is the ESB station at Coolkeeragh in Derry. Since the single electricity market was put in place, we have seen a trebling of investment in renewables in Northern Ireland. There are approximately 775 MW of renewable generating power installed, which is bigger than any of those individual power stations. As such, wind contributes approximately 20% of Northern Ireland's capacity, which is not insignificant. It is playing an increasing role, not only in terms of meeting Northern Ireland's needs but also in terms of contributing to the single electricity market. If we had not entered into the single electricity market in 2007 and if Northern Ireland had remained a separate small market, we would undoubtedly have seen different patterns of investment for Northern Ireland simply to meet its needs on its own.

The simple act of committing to and entering into the single market on the island has sent a strong signal to investors, namely, here is a single market system in which they can make investments. The signal is not that specific investment is needed in Northern Ireland. If we do not have a second North-South interconnector and the Northern Irish Government must call for investment in generation solely in Northern Ireland, we risk decoupling all of the benefits of the single market. That is where a regulator should be, with the market sending signals about where investment is needed. The market has sent the signal that the island as a whole needs investment. That investment has been made and there is capacity. It is just not able to go to where it is required. This is the underlying economic premise for the North-South interconnector.