Bernard Durkan (Kildare North, Fine Gael)
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Question 226: To ask the Minister for Communications, Marine and Natural Resources the number and location of electricity interconnectors likely in the next five years; the capacity in each case; and if he will make a statement on the matter. [20360/05]

Noel Dempsey (Meath, Fianna Fail)
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Our electricity system is currently linked to the system in Northern Ireland by three interconnectors, one between Tandragee and Louth, one between Strabane and Letterkenny and one between Enniskillen and Corraclassy. The main interconnector, which is between Tandragee and Louth, has a physical capacity of 600 MW of power with 100% standby capacity. The interconnectors enable trade of electricity between Northern Ireland and the Republic of Ireland and, through the Moyle interconnector, Northern Ireland-Scotland, with Britain to provide a more efficient, integrated electricity system on the island of Ireland. The interconnector capacity available for trading between the jurisdictions is less than the physical capacity of 600 MW.

When allowance is made for dealing with faults such as those caused by thunderstorms, the grid capacity in both systems and system security, the capacity available for trading in a North-South direction between Northern Ireland and the Republic of Ireland is typically 330 MW. This can be less at times for technical reasons. The two smaller interconnectors are not available for trading as they are connected to weak parts of both networks and are used for local network support only.

In November 2004, my Northern Ireland counterpart and I endorsed the regulators' plans for a second North-South electricity interconnector. When operational, the second interconnector will increase the power transfer capacity between North and South, facilitate increased trade in electricity and further enhance security of electricity supply and competitiveness. It is estimated that the interconnector could take up to eight years to complete depending on the route and speed of planning consents. ESB National Grid and Northern Ireland Electricity are currently developing proposals on route options, planning permissions and other technical issues.

The Commission for Energy Regulation has appointed a consortium to advise on the financial, technical, commercial and procurement aspects relating to interconnection of 500 to 1000 MW capacity between Ireland and Wales. Phase 1 of the project, which is scheduled to be completed before the summer, will look at procurement options, routing, capacity, ownership and operational parameters. A consultation process will be undertaken with all parties who have expressed an interest to date. A decision on how best to take the project forward, whether on a regulated or a hybrid regulated merchant basis, will be taken at the end of phase 1. The consultancy should report to CER by end of June and it in turn will report to me in July or August having assessed the implications of the report.

East-west interconnection remains a fundamental part of the electricity strategy for Ireland, as endorsed by Government. The project will provide the increased security of supply, competition and integration of the Irish electricity market into the wider European energy market.