Áine Brady (Kildare North, Fianna Fail)
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Question 239: To ask the Minister for Communications, Energy and Natural Resources the policies he and the energy regulator are pursuing to ensure a more competitive supply of energy here in view of the recent announcement that Ireland will receive €100 million to invest in an east-west interconnector; and if he will make a statement on the matter. [4054/09]

Eamon Ryan (Dublin South, Green Party)
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The Energy Policy Framework and the Programme for Government set out the Government's commitment to delivering a reliable and competitively priced energy supply in support of economic growth and competitiveness. The introduction of the all-island Single Electricity Market (SEM) in November 2007 marked an important milestone in the development of competition in the Irish electricity sector. The SEM is a wholesale electricity market supplying some 2.5 million electricity customers. It represents a significant step towards the All-Island Energy Market, which will encourage open and transparent competition in electricity and gas and a more stable and attractive investment location for independent players.

In this context, the Government has also ensured a reduction in ESB's market share in power generation through the recent sale to Endesa of approximately 1,300 megawatts of generation capacity. This has introduced a major new international player into the Irish market.

The Government will continue to implement the opening of the electricity and gas markets in line with EU Internal Energy Market Directives. This commitment to liberalise the gas and electricity sectors will take place in the context of EU developments, including the development of Regional Energy markets, as well as the all-island energy framework and the interests of the economy and consumers north and south.

In addition to these measures, the Government has given the go-ahead for the construction of a 500 megawatt electricity interconnector between Wales and Ireland by 2012. The interconnector will further promote competition in the electricity market and will allow third-party access in a fair, consistent and transparent manner. This in turn will assert downward pressure on electricity prices. The new interconnector will also enhance our security of supply, reduce our dependency on electricity generated from gas and allow us to accelerate our development of renewable energy, providing potential opportunities for the export of wind-generated electricity. The European Commission has included the Interconnector on the list of energy projects under the European Economic Recovery Package, which is currently being negotiated in Brussels.

I welcome the Commission's recognition of the strategic importance of the project and will continue to work intensively in the negotiations with Member States and the European Parliament to secure the funding.