John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

Question 114: To ask the Minister for Communications, Marine and Natural Resources when the Government expects to make a decision regarding the construction of a new east west inter-connecter with the UK; the projected grid reinforcement measures that will be required on the UK side of such an inter-connector; and the respective roles for the UK and Irish transmission grid companies in the operation of the facility. [38786/06]

John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 126: To ask the Minister for Communications, Marine and Natural Resources if it is intended to provide one or two interconnectors; if this is expected to happen by way of public or private enterprise or a combination of both; and if he will make a statement on the matter. [38811/06]

Kathleen Lynch (Cork North Central, Labour)
Link to this: Individually | In context

Question 148: To ask the Minister for Communications, Marine and Natural Resources if he will report on the development of an east west interconnector; if it will be developed on a regulated, hybrid regulated or merchant basis; the amount it is set to cost; the meetings his Department has conducted with their UK counterparts on this matter; and if he will make a statement on the matter. [38863/06]

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 114, 126 and 148 together.

Security of energy supply is a key imperative for Ireland and the European Union. The relatively small size of the Irish electricity market underlines the need for greater interconnection as a means of enhancing security of supply, promoting competition and integrating the Irish electricity market into the wider European market.

The recently published Energy Policy Green Paper "Towards a Sustainable Energy Future for Ireland" underlines the Government's commitment to deliver enhanced interconnection on the island of Ireland as well as with Britain as a priority. This is also the way forward envisaged at European level.

The Government has made a decision approving plans for the construction of a single 500 megawatt electricity interconnector between Ireland and Wales. On foot of the Government decision, the Commission for Energy Regulation (CER) has been requested to proceed with a competition to select a developer to secure the design and construction of this interconnector by 2012 at the latest. As regards funding, the mechanism will be determined by the CER with fully regulated capital expenditure and revenues which will deliver the most cost effective and efficient solution.

The CER has also been requested to arrange for EirGrid and ESB to expedite the technical work of route selection and necessary grid reinforcement works. The Government decision provides that the interconnector when completed will as a key strategic asset remain in public ownership and will be owned by EirGrid.

EirGrid will carry out the work needed to select the route of the interconnector and the sites at each end for the converter stations. This will involve discussions with the UK authorities to determine what routes are feasible. The CER will actively participate as appropriate.

To underpin the development process, new arrangements are proposed in respect of the construction and operation of future interconnectors in the Energy (Miscellaneous Provisions) Bill 2006. The Bill provides that the CER may, with Ministerial consent, secure the construction of an interconnector by one or more means, including by competitive tender. Such consent will be contingent on final Government approval.

I am not in a position to put forward any estimates as to the ultimate cost of the east-west interconnector not least because the groundwork has not been completed on specific routes. Until the CER has established considerably more detail on the specifics of the route, seabed surveys and the cost and extent of the essential grid reinforcements, it would serve no useful purpose to speculate on final costs. Also, it would be inappropriate to pre-empt the outcome of the competitive process for developer selection.

Meetings by my Department with UK counterparts to discuss energy matters including interconnection occur on a regular basis. The Department of Trade and Industry has been briefed on developments related to the interconnector. Both Departments are in full agreement on the merits of enhanced interconnection and have undertaken to liaise closely as necessary as the project goes forward. I also briefed my Welsh colleague Minister Andrew Davies in September and we agreed that officials would work closely together on the technical and other dimensions of the project. My Department has also briefed the European Commission on the east-west interconnection proposal and I am pleased to note that the response of the Commission was very positive and supportive.