Neale Richmond (Fine Gael)
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I raise this matter with the post-Brexit era in mind and in view of the difficulties we are facing. There are many issues with which we must deal. Some of them are complex and some are not of our making but their resolution will be very tricky and may take some time, both for the UK and European sides. There are some, however, which I believe can be resolved quite early and quite simply, one of which is energy security. Ireland is largely reliant on energy imports from the UK and, while I hope this continues, it would be prudent to secure our supply by looking further afield into the European Union. The easiest way to do this is by the completion of the Celtic Interconnector. The EU designation of this project as one of common interest, meaning it has been allocated 50% of funding in the past week, is welcome and we need to grab the bull by the horns and bring the project to fruition as quickly as possible. We need to work with our counterparts in France and the wider EU so that we will have the option of getting an energy supply from France as well as the UK.

I ask the Minister to outline what stage the application is at for the foreshore licence to land the line in Ireland, and what dealings have been held by EirGrid and its French counterparts in RTE. How is the Government working with its counterparts in France and the European Commission to bring this project to fruition?

Seán Kyne (Galway West, Fine Gael)
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I thank Senator Richmond for giving me the opportunity to discuss what is a potentially very important electricity infrastructure project, particularly so now in the context of Brexit. I am taking this matter on behalf of the Minister, Deputy Denis Naughten.

Interconnection is viewed as critical infrastructure by the European Commission in order to move to a genuinely integrated electricity market. This is reflected in national policy through the White Paper on energy, published in December 2015. The Celtic Interconnector is a €1 billion electricity interconnector jointly proposed by EirGrid and its French counterparts, the French transmission system operator, Reseau de Transport d’Électricité, RTÉ. It is proposed as a 500 MW to 700 MW high-voltage direct current line that will run from the north-west coast of France to Ireland’s south coast, coming onshore at either Cork, Waterford or Wexford. At this scale it would be able to provide electricity for some 450,000 homes.

In July 2016, together with the Taoiseach and the then President of France, François Hollande, the Minister, Deputy Naughten, was present at the signing of a memorandum of understanding between EirGrid and RTE. This marked the completion of the feasibility phase of the project and was an agreement between the two organisations to move to the current phase.

The feasibility phase of the project was a two-year process, part funded by the EU’s connecting Europe facility, CEF, programme. It concluded in mid-2016. A suite of marine surveys and marine engineering studies was carried out, as well as the identification of possible landing sites and preliminary economic and other assessments. This phase provided the information required to determine that there was sufficient justification for EirGrid and RTE to proceed to the current phase of the project. This current phase of the project comprises an indepth economic assessment of the project, technical and environmental studies and pre-consultation in preparation for permit granting procedures in France and Ireland. Last month the project was awarded further funding of €4 million from the CEF to support the delivery of this phase of the project. Around the middle of next year EirGrid and RTE are expected to seek regulatory approval for the development of the project, with a final investment decision to be taken in 2020. The construction of the project would be expected to be completed circa 2025.

The Celtic Interconnector project has the potential to provide a reliable high-capacity electricity link between Ireland and France that would have significant benefits for the people of Ireland. The project would provide access to the European electricity market, leading to expected increased competition and lower prices in Ireland. It would also improve security of electricity supply and facilitate increased capacity for renewable energy here via access to the mainland European market. As the Senator said, in the context of Brexit it is hugely important that we have an additional interconnector to the one we have with the UK. I hope we will see progress on it and that it can be provided for by 2025.