Bernard Durkan (Kildare North, Fine Gael)
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Question 295: To ask the Minister for Communications, Marine and Natural Resources if he has identified the optimum number and location of gas and electricity connectors; and if he will make a statement on the matter. [34707/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 296: To ask the Minister for Communications, Marine and Natural Resources when he expects gas and electricity connectors to be provided in such a way as to protect continuity and security of supply; and if he will make a statement on the matter. [34708/05]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 295 and 296 together.

At a bilateral meeting in November 2004, Mr. Barry Gardiner, MP, the then 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. Planning for the construction of the interconnector is continuing.

Transmission system operators are working on phase one of the project, including technical issues and route selection. This phase is likely to be completed by early 2007. Phase two, the construction phase, will then commence and it is estimated that the interconnector will be operational by 2012. 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.

In regard to the east-west electricity interconnector, the CER appointed consultants to advise on the financial, technical, commercial and procurement aspects of the development. Phase one of the project, which is now complete, examined procurement options, routing, capacity, ownership and operational parameters. A consultation process was undertaken with all parties that expressed an interest. A decision on how best to take the project forward, whether on a regulated or a hybrid regulated-merchant basis, is the next step. Such determination will be informed by the advice of the CER in the matter. I expect the CER to report to me in the coming weeks.

In recent times, Ireland has developed a high standard of security of gas supply, through robust interconnection with the United Kingdom, to ensure sufficient importation capacity from external sources. We now have two gas interconnectors, with the second ensuring security of gas supply to 2025 and beyond. Ireland's security of supply status is on par with countries such as France, Italy, Sweden and Denmark, all of whom have duplicated sub-sea pipelines to ensure the availability of alternative routes of natural gas supply. In addition, Northern Ireland has a separate line to Scotland and, by the end of 2006, the South-North interconnector will link the two systems.

Under section 19 of the Gas (Interim) (Regulation) Act 2002, the CER is required to prepare and publish an annual forecast of capacity, flows and customer demand on Ireland's natural gas system over a seven-year period. The most recent capacity statement was published on 31 July 2005 and includes a range of possible demand scenarios that may be expected to arise over the coming years. The scenarios incorporate various levels of demand, based on forecasts for the domestic, industrial and commercial, and power generation sectors, while also considering potential timeframes for new indigenous supply.