Noel Dempsey (Meath, Fianna Fail)

I propose to take Questions Nos. 6, 34 and 83 together.

Security of energy supply is a key imperative for Ireland and the European Union. The relatively small size of the Irish electricity market underlines the need for greater interconnection as a means of enhancing security of supply, promoting competition and integrating the Irish electricity market into the wider European market. The recently published energy policy Green Paper, Towards a Sustainable Energy Future for Ireland, underlines the Government's commitment to deliver enhanced interconnection on the island of Ireland, as well as with Britain, as a priority. This is also the way forward envisaged at European level.

The Government has endorsed plans for the construction of a 500 MW electricity interconnector between Ireland and Wales. On foot of the Government decision, the Commission for Energy Regulation, CER, has been requested to proceed with a competition to select a developer on a hybrid-merchant basis to secure the construction of this interconnector by 2012 at the latest. The CER has also been requested to arrange for EirGrid and ESB to expedite the technical work of route selection and necessary grid reinforcement works. The Government decision provides that the interconnector, when completed, will be owned by EirGrid to ensure this strategic asset remains in public ownership.

To underpin the development process, I have proposed new arrangements in respect of the construction and operation of future interconnectors in the Energy (Miscellaneous Provisions) Bill 2006. The Bill provides that the CER may, with ministerial consent, secure the construction of an interconnector by one or more means, including by competitive tender. Such consent will be contingent on Government approval. Planning for decisions on further interconnection with Britain or potentially with the European mainland will begin in 2010.

See this speech in context