Michael D Higgins (Galway West, Labour)
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Question 111: To ask the Minister for Communications, Marine and Natural Resources if his Department has held further meetings with its UK counterparts on the development of an east west interconnector; if a decision has been taken on the way new interconnector will be funded; if there is planning for a second interconnector; and if he will make a statement on the matter. [5320/07]

Noel Dempsey (Meath, Fianna Fail)
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Meetings between my Department and their 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 agreement on the merits of enhanced interconnection and have undertaken to liaise closely, as necessary, as the project goes forward. I met with my Welsh colleague Minister Andrew Davies earlier this month and briefed him on progress to date in relation to the project. My Department has also briefed the European Commission on the proposal and I am pleased to note that the response of the Commission was very positive and supportive.

As regards funding, the mechanism will be determined by the CER to deliver the most cost effective and efficient solution. The CER is working closely with EirGrid in its capacity as licensed transmission system operator to develop the competition to select a developer. When completed, the interconnector will be owned by EirGrid to ensure this strategic asset remains in public ownership.

To underpin the development process, new arrangements have been put in place in respect of the construction and operation of future interconnectors in the Energy (Miscellaneous Provisions) Act 2006. The Act 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.

In addition, the NDP includes a new Strategic Energy Infrastructure Sub-Programme which lists a number of large-scale public good energy infrastructure projects such as interconnection. While the cost of strategic energy infrastructure has traditionally been borne by the utilities, consideration will be given to the possibility of an Exchequer contribution to the cost of such investment. Planning for decisions in relation to further interconnection with Britain or potentially with the European mainland will begin in 2010.