Joan Burton (Dublin West, Labour)
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Question 40: To ask the Minister for Communications, Energy and Natural Resources the position regarding the European Commission's offer to provide €100 million to help build an electricity interconnector between Ireland and Britain; and if he will make a statement on the matter. [10524/09]

Seán Power (Kildare South, Fianna Fail)
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The European Commission has included the interconnector project between Ireland and Wales on its list of proposed energy projects under the European Economic Recovery Package, which is currently being negotiated in Brussels. EirGrid, as the National Transmission System Operator, is progressing the construction of the interconnector on behalf of the State.

I welcome the Commission's recognition of the strategic importance of the East West interconnector in its proposals. There has been considerable progress in the negotiations in Brussels on the Commission's overall proposals, which have implications for the EU Budget. In that context the Minister is continuing to work with the Minister for Finance and other ministerial colleagues to ensure the best outcome for Ireland on the overall package.

Delivery to schedule of the East-West Electricity Interconnector is a key Government priority. The interconnector will underpin regional energy market development and the all-island Single Electricity Market. It will ensure that Ireland can benefit from the development of a strong internal energy market in Europe.

East West interconnection will also give Ireland direct and secure access to the UK energy market and onwards also to the EU mainland markets. This will increase Ireland's security of electricity supply and enhance the competitive energy market. Over time the interconnector should exert downward pressure on prices in the all-island electricity market. The Government has set the ambitious target of 40% of our electricity consumption from renewable sources by 2020. The East West Interconnector will support the increased penetration of renewable generation, particularly wind generation in the Irish market. It will offer opportunities for export of Irish wind generated electricity.