Michael Moynihan (Cork North West, Fianna Fail)
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4. To ask the Minister for Communications, Energy and Natural Resources following the publication of a new European Union energy package in which Ireland is singled out as one of the member states that is not sufficiently connected with other European Union countries, the steps he will take to achieve the electricity interconnection target of at least 10% of installed electricity production capacity by 2020; and if he will make a statement on the matter. [10596/15]

Michael Moynihan (Cork North West, Fianna Fail)
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I wish to ask the Minister for Communications, Energy and Natural Resources his views on the new EU energy strategy in which Ireland is singled out as one of the member states which is not sufficiently connected with other EU countries, and what steps he will take to achieve the electricity interconnection target of at least 10% of installed capacity by 2020.

Joe McHugh (Donegal North East, Fine Gael)
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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.

Michael Moynihan (Cork North West, Fianna Fail)
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How advanced is the planning for the interconnector with France, what is the latest research on the project, and when is it likely to happen? What other interconnectors with the UK are envisaged in the near future?

Joe McHugh (Donegal North East, Fine Gael)
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The North Sea offshore grid is in the first priority list in the annex to EU Regulation No. 347/2013, which sets out guidelines for trans-European energy infrastructure. These guidelines cover integrated offshore electricity grid development and related interconnectors in the North Sea, the Irish Sea, the English Channel, the Baltic Sea and neighbouring waters aimed at transporting electricity from renewable offshore energy sources to centres of consumption and storage, and to increase cross-border electricity exchange. The member states concerned are Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Sweden and the United Kingdom.

The interconnector with France is at a conceptual stage, but from speaking with people in the industry, I am aware of the opportunities associated with it. If we are to move to a single energy market, we should not be restricted to connectivity with the United Kingdom. From a personal point of view, I see France as an option but it is at a conceptual stage and we need to continue the conversation by keeping it on the agenda, whether in Strasbourg, the European Commission or the European Council. We are all conscious of the importance of energy security given what is happening in eastern Europe. We need to develop plan B and plan C, and if the interconnector with France is an option, we have to keep it on the agenda.

Michael Moynihan (Cork North West, Fianna Fail)
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It has to be kept on the agenda because it would reduce our reliance on interconnections with the UK. The Minister of State referred to wind farm interconnectors, which were intended to carry the electricity produced by a specific wind farm project, which has now fallen through, directly to the UK. There would be no benefit to the Irish energy economy from that project. It is vital that we have an interconnector with mainland Europe.

The community dividend from the North-South interconnector also has to be considered carefully. The way that project was handled was less than correct. It was a shambles from start to finish. We need a connection with the heart of Europe, and in this regard the interconnector with France must be kept on the agenda at EU level and certainly in Ireland.

Joe McHugh (Donegal North East, Fine Gael)
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I agree it must be kept on the agenda. If we want to keep something on the agenda, the question of resources and funding must be addressed. There could be a role in this matter for the European Investment Fund and the Connecting Europe Facility, which can attract capital at favourable interest rates and, in turn, leverage debt and equity financing to enable major energy infrastructure projects to proceed. The concerns of peripheral regions with inadequate interconnections and sources of energy can be addressed by these means. While our figure for connectivity is currently at 11%, we need to build on it. This debate needs to continue in this Parliament and in Europe, with a focus on the key issue of resources.