Mr. Rodney Doyle:

A couple of questions were asked about the 700 MW Celtic interconnector between Ireland and France. I hope I will pick up on some of the points that were made in this respect. The feasibility studies that are under way have been very positive to date. There has been an examination of whether the route is feasible. It looks very positive that it is. I was also asked about the funding. To date, 50% of the cost of the feasibility studies that have been conducted have been supported by the EU Commission. Grant funding will be available for the overall project, depending on the qualifying criteria. Under the right conditions, we will seek to maximise the funding that is available. A full detailed cost-benefit analysis of the project will be conducted. The project will need to stand up for Irish and French consumers. The French authorities are positively disposed towards it and have been supportive of it.

As things stand, it seems that the Celtic interconnector project would have a positive impact on prices. When we examine a project of this nature, we need to consider how prices would be in its absence. In this case, the analysis shows that prices would be higher without it. This project will allow Ireland to link into lower price zones. Prices in Ireland are higher than the EU average. When we link into these zones and engage in market coupling, which the all-island single electricity market will deliver between ourselves and Britain, we get the benefit of being linked into a lower price zone. Lower-price energy flows as a result, and overall we are seen to have lower prices than we would otherwise have had. The Celtic interconnector will provide us with another route into another market. The market in this case has a much wider base in terms of the kind of generation supply, a wider portfolio in terms of the generation that is available and a lower price zone. It is positive from that perspective.

The Celtic interconnector project will absolutely be conducted on the basis of a cost-benefit analysis and will only go forward on its own merits at that stage. It is currently proposed that it will link into the all-island energy market. If the North has to separate from that market as part of a hard Brexit, we will look at that stage at whether the project continues to stand up when it involves the Republic of Ireland market only. Of course it would still provide a security of supply benefit for the island as a whole because we would still be interconnected with the North of Ireland, even in the event of a hard Brexit.

A question was asked about whether views are aligned on the benefits of the Celtic interconnector for Northern Ireland. Our colleagues in the North on the regulatory and governmental or departmental sides have been hugely positive about the benefits to date of the single electricity market approach and the proposed implementation of the all-island single electricity market project. Our colleagues in the regulator and across both Departments are positively disposed to the project and continue to support it. They see the all-island single electricity market project as the all-island solution for the energy market as we go forward because it has brought huge benefits to customers in Northern Ireland and the Republic of Ireland. From that perspective, our outlook on the benefits this project will provide to both sets of customers is very much aligned. My colleague, Ms Steen, will answer the questions that were asked about Grid West, the introduction of technology and community gain.