Bernard Durkan (Kildare North, Fine Gael)
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Question 403: To ask the Minister for Communications, Energy and Natural Resources the position on north/south and east/west gas and electricity interconnectors; and if he will make a statement on the matter. [37567/08]

Eamon Ryan (Dublin South, Green Party)
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The building of transmission lines is an operational matter for EirGrid, as regulated by the Commissions for Energy Regulation (CER), along with the relevant planning authorities, and not one in which I have a function. The East-West and North-South Interconnector projects are of strategic national importance to Ireland and are key Government priorities. The Meath-Cavan and North-South transmission lines are part of a major upgrade to supplies in the North East region and will bring critical infrastructure to the North East region, ensuring the delivery of high quality and highly reliable services into the future and facilitating competition as part of the All Island electricity market.

EirGrid will be required in its Planning Application to An Bord Pleanála to submit full details of its proposed route and technology selection. Consultations on the route selection are ongoing. As part of these consultations EirGrid has opened information centres in Navan and Monaghan on the route selection and has met with stakeholders including individuals, local interest groups and public interest groups. EirGrid expects to submit a planning application for the North/South interconnector to the planning authority, the Strategic Infrastructure Board of An Bord Pleanála, in 2009 which will include a full Environmental Impact Statement. The target completion date is 2012.

The East-West Interconnector is a 500MW High Voltage Direct Current (HVDC) interconnector, which will link the electricity grids of Ireland and Great Britain. The advantages that the development of the East West interconnector will bring include improved security of supply and increased competition in the single electricity market as well as significant environmental benefits such as assisting in achieving our ambitious renewable targets and reducing carbon credit payments. EirGrid has been entrusted with the development and ownership of this interconnector by the Government. Working closely with the CER and with my Department, EirGrid is progressing the project to schedule. The Electricity Regulation (Amendment) (EirGrid) Act 2008 provides the necessary legal basis for EirGrid to construct, own and operate an interconnector.

I am advised that EirGrid expects the contract for design and construction of the interconnector to be completed in the coming months, when the successful bidder will be announced. EirGrid has secured Woodland in County Meath as the connection point for the interconnector on the Irish transmission system and Deeside in Wales on the UK side. Furthermore, EirGrid has undertaken a marine survey to determine the most suitable route for the undersea cable. Work is also progressing on the various applications for authorisations and permissions required along the entire route of the interconnector.

Late 2011 is the target for the completion of works and 2012 is the target for the completion of commissioning and testing and the start of commercial operations. The project remains on track to meet these target completion dates, subject to the outcome of the planning processes. Financing options for this project are being pursued by EirGrid with the objective of achieving the most cost-effective and efficient financial package. The interconnector will, as a national strategic asset, remain in public ownership and will be owned and operated by EirGrid. To oversee and ensure completion to schedule, a High-Level Coordination Group has been established under the Chairmanship of the CER and comprises representatives of EirGrid and my Department.

There has been substantial investment in Ireland's natural gas network in recent years. As indigenous gas resources deplete and Ireland's reliance on imports from the UK market increases, infrastructural developments have ensured that the Irish network is well placed to accommodate growing gas demand in the medium term. From Brighouse Bay in Scotland there are two pipelines connecting Ireland to the UK gas network.

The first gas interconnector between Ireland and Scotland (IC1) has been in operation since 1993. A second sub-sea interconnector (IC2) pipeline was completed in 2002 and has been operational since January 2003. IC1 and IC 2 are connected to the gas onshore system north of Dublin at Loughshinny and Gormanstown respectively. IC2 was necessary in addition to the existing first interconnector to ensure an adequate and continuous gas supply to meet growing demand. Both projects were built by Bord Gáis Éireann and as a result Ireland enjoys a high standard of physical security of gas supply. Interconnection has facilitated the connection of new gas-fired power stations and also gives more flexibility to the Irish natural gas system.

A North-South gas pipeline, also constructed by BGE, extends from IC2 at Gormanstown, Co. Meath to Belfast and was commissioned in October 2006. This pipeline has greatly enhanced security of gas supply for Northern Ireland and has also facilitated supplies to towns and industries in the corridor from Gormanstown to Belfast.