Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

The European Commission’s energy union package is aimed at enhancing energy security, sustainability and competitiveness throughout Europe. It proposes that EU member states work collaboratively and intensively on a list of actions in pursuit of common energy policy goals. Included in the package is a Commission communication on achieving interconnection of at least 10% of installed electricity production capacity for all member states.

For energy consumers to participate fully in an integrated European internal energy market, poorly interconnected peripheral member states, including Ireland, will need improved electricity and gas interconnection. An enhanced regional approach to delivering full European energy market integration is proposed. In this regard, Ireland has witnessed the benefits of regional co-operation since the establishment of the single electricity market in November 2007.

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The benefits of the single energy market include improved security of supply, competitive prices and increased penetration of renewable energy, each of which is a goal of the energy union proposals. The completion of the North-South transmission line project will significantly enhance Ireland's level of interconnection with the UK. Similarly, additional interconnections with France and the UK would further enhance our connectivity and bring benefits in security, competitiveness and sustainability.

To help the creation of an integrated EU energy market, the European Commission has drawn up a list of projects of common interest. These projects are proposed by infrastructure developers, and the list contains several possible projects relating to Ireland. While the projects are at various stages of development, with some of them still conceptual and possibly never coming to fruition, some of the projects could potentially underpin further integration into regional markets through additional interconnection. The North-South transmission line project is included on the list of projects, as is the possible interconnection with France. Several interconnectors with the UK are also listed, some of which relate to the possibility of trading renewable electricity with the UK after 2020.

Additional information not given on the floor of the House

The Department is engaging with the European Commission to clarify Ireland's current level of interconnection. Depending on the variables used in the calculation, the level of a country's interconnection can vary. I am advised that, at a minimum, Ireland has around 11% of electricity interconnection. Notwithstanding this, Ireland would welcome additional investment to increase our connectivity, and opportunities will be pursued where possible.

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