Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

Thank you, a Leas-Chathaoirligh. I note the amendment that will be moved to this motion and welcome this opportunity to address Members of the House and to discuss what is a very important energy infrastructure project, namely, the North-South interconnector. This proposed interconnector is a new 138 km long, high-capacity electricity interconnector along overhead lines between the transmission networks of Ireland and Northern Ireland. I had the same opportunity to debate this issue in Dáil Éireann on 14 February 2017 when an identical motion was proposed by Fianna Fáil.The Government proposed a counter-motion and the same counter-motion will be proposed here today. It is important to again advance this counter-motion in order that we affirm the need for the North-South interconnector, recognise the benefits it will bring through lower prices as a result of more efficient operation of the single electricity market and acknowledge the analysis that underpins the overground proposal.

On 21 December 2016, An Bord Pleanála granted planning permission for the interconnector in Ireland with a number of conditions attached. The decision concluded a lengthy planning process, which included an oral hearing completed over an 11-week period from March to May last year. The planning process in Northern Ireland is ongoing, with a planning inquiry having concluded on 27 February of this year. The proposed interconnector is a vital piece of infrastructure for ensuring a safe and sustainable source of energy for both Ireland and Northern Ireland. It is expected that its development will deliver significant benefits to electricity consumers across the island of Ireland through lower prices as a result of more efficient operation of the single electricity market. Developing the interconnector has the impact of reinforcing the electricity grid infrastructure in the north east of the State and, therefore, provides certainty for electricity generation and wider investment.

Many Members of this House and the Lower House have genuine concerns and I have no difficulty with that but some people have mischievously played politics with this issue. I want to put it on the record that if this project is not built, it will create uncertainty that may impact on the willingness of future investors on the whole island of Ireland to exploit the full potential of the single electricity market. I repeat, as it is important this is noted by all Members of both Houses, that if the project does not go ahead, it will create uncertainty that may have an impact on the willingness of future investors to invest in electricity projects on this island. I hope all Members of both sides of the House take note of what I have just said.

Any further delays to the development of the project add uncertainty and will increase security of supply risk to Northern Ireland, in the first instance, but also to both Ireland and Northern Ireland as the benefits of mutual reinforcement of the single electricity market would be delayed. In the context of Northern Ireland's security of electricity supply challenges post-2020, it is particularly important in terms of maintaining our excellent North-South relations in the area of energy that Ireland provides certainty in respect of developing the North-South interconnector. I also underline the crucial importance of continuing Ireland’s close relationship in the energy sector with both Northern Ireland and the UK in the context of our future energy relationship and Brexit. In 2015 Ireland had an energy import dependency of 88% and the UK is the conduit for much of this energy. For instance, 97% of the natural gas used in Ireland in 2015 was imported via the UK. Maintaining secure trade in energy with the UK and the continued effective functioning of the single electricity market are key Brexit priorities for Ireland. I note the UK Government’s continued support for the single electricity market, as set out in the UK White Paper on exiting the European Union and the letter of 14 October 2016 of Prime Minister May to the First and deputy First Ministers of Northern Ireland.

Brexit is the most significant economic and social challenge of the past 50 years. It will impact our economy and society due to the close links between Ireland and the UK, of which energy is one of the critical sectors. Given the importance placed on the single electricity market and the key role of the North-South interconnector in this market, the uncertainty created by passing the proposed motion would be of significant concern. Furthermore, the bilateral relationship we have with the UK in energy cannot be viewed in isolation. We must consider the implications of any potential impacts a change in our energy relationship, perceived or otherwise, could have on other sectors. It is therefore critical, in the context of Brexit, that we maintain a close and positive relationship with the UK across all sectors.

In a wider European context, the North-South interconnector was designated a project of common interest by the European Commission in October 2013 and again in November 2015. Projects of common interest are energy projects deemed by the European Commission to be of strategic, transboundary importance. Any development of national infrastructure must strike a balance between the overall benefits of the project and the local impact on people, landscape, tourism, farming and homes. I am well aware of concerns that have been raised among the communities across counties Cavan, Meath and Monaghan about the proposals for the North-South interconnector. In fact, I am one of the few Ministers who has met the groups face to face. I believe I am the first Minister since the former Minister, Deputy Eamon Ryan, who had the courtesy to meet them and hear their concerns.

I am also aware there is a long-held and passionately-argued belief within some local communities along the route of the interconnector that the transmission lines should be laid underground, rather than built overhead. However, all evidence available to me and the advice of my chief technical adviser, even on foot of the recent meeting I had with the groups, indicates that this would cost substantially more and deliver less. In essence, the interconnector is proposed as a high-voltage alternating current overhead line because various studies, many of them independent, deem it to be both the best overall technical solution and the most cost-effective option for this project.

This proposal is fully in keeping with EirGrid’s statutory obligations to develop a fit-for-purpose electricity transmission system as cost-effectively as possible. The studies include the international expert commission report in 2012, which found the construction of an underground option to be circathree times the cost of the overhead option and the July 2014 statement of the independent expert panel, chaired by Mrs. Justice Catherine McGuinness, which found that in all material respects, the methodologies employed on the North-South interconnector were compatible with the methodologies employed on other grid development projects such as the Grid Link and Grid West projects. From a technical perspective, it should be pointed out that direct current lines would need to be used if the lines were laid underground over this distance and these do not efficiently integrate the electricity systems of Ireland and Northern Ireland into a single meshed grid system.This is a key technical disadvantage that an underground option would have when compared with the proposed overhead project. All studies and information pertaining to undergrounding were available to An Bord Pleanála as part of the recent planning process. In the oral hearing the inspector heard testimony both in favour of and against the overground and underground solutions. The inspector examined those issues thoroughly and concluded that a high voltage alternating current overhead line is the best technical and economic solution for the North-South interconnector to achieve national energy objectives. I would stress, therefore, that the statutorily independent planning process has determined that the proposed North-South interconnector should be developed, and I fully accept the outcome of that planning process. Of course, I also understand the concerns of the communities of Cavan, Meath and Monaghan about the project, and I have met with and listened to representatives of these communities in the last fortnight and committed to further engagement. I know that my officials will be directly engaging with both of those committees. However, the reason the Government does not support the motion as proposed is due to the uncertainty it would create regarding our energy relationship with Northern Ireland and the UK as a whole.

An issue that has been raised, including by the community representative groups, was that there needs to be further independent analysis of international developments around the relative cost differences, technologies and engineering solutions of overhead and underground technologies. An update of the work of the 2012 independent study can provide this clarity, and my Department is working to finalise the terms of reference and procure expert advice on these issues. My intention is that this should be a short, focused piece of work and be placed in the public domain as quickly as possible. This is what the proposed amendment I have proposed seeks to do and it does it without introducing undue uncertainty to our energy relationship on an all-island basis and with the UK. I would urge Senators to support the proposed amendment, which is both fair and balanced.