Written answers

Thursday, 5 May 2005

Department of Communications, Energy and Natural Resources

Electricity Generation

5:00 pm

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 40: To ask the Minister for Communications, Marine and Natural Resources the position in regard to the provision of further electricity interconnectors; the timetable for same; and if he will make a statement on the matter. [14522/05]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 170: To ask the Minister for Communications, Marine and Natural Resources the position in regard to the provision of further electricity interconnectors; the timetable for same; and if he will make a statement on the matter. [14752/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 40 and 170 together.

At a bilateral meeting in November 2004, Mr. Barry Gardiner, MP, the Northern Ireland Minister for Enterprise, Trade and Investment, and I endorsed plans put forward by the Commission for Energy Regulation, CER, and the Northern Ireland Authority for Energy Regulation for the construction of a second North-South electricity interconnector. The proposed interconnector will provide increased system security and reliability. It will be a positive step toward further developing competition and will facilitate the development of a fully functioning single electricity market. The two regulators and two transmission system operators, North and South, are currently discussing details of route options, ownership structures and other technical issues.

The ESB national grid and Northern Ireland Electricity will progress the additional interconnector to the point where planning permission for all the necessary line and station works is obtained. The next steps are to agree a detailed route and site selection, conduct an environmental impact assessment and prepare the planning permission application. When these steps are completed total costs for the project will be available, which will be subject to final approval by the Commission. This will inform policy decisions as to how best to progress the project to finality.

With regard to the east-west interconnector, the CER has appointed a consortium led by KPMG's corporate finance division to advise on the financial, technical, commercial and procurement aspects relating to new electricity interconnection between Ireland and Wales. Phase one of the project, to be completed before the summer, will look at procurement options, routing, capacity, ownership and operational parameters.

A decision on taking the project forward, whether on a regulated, merchant or a hybrid basis, will be taken at the end of phase one when a recommendation will be presented to me by the CER. East-west interconnection remains a fundamental part of the electricity strategy for Ireland and this project will provide increased security of supply, competition and integration of the Irish electricity market into the wider European energy market.

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