Enda Kenny (Mayo, Fine Gael)
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Question 906: To ask the Minister for Communications, Energy and Natural Resources the length, capacity and most recent expected capital cost of the east-west electricity interconnector to the United Kingdom; and if he will make a statement on the matter. [10912/09]

Enda Kenny (Mayo, Fine Gael)
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Question 907: To ask the Minister for Communications, Energy and Natural Resources the way EirGrid will recover the cost of the east-west electricity interconnector; if he will ensure that it is operated in such a manner as to maximise societal and environmental benefit; and if he will make a statement on the matter. [10913/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 906 and 907 together.

The East-West Interconnector is a 500MW High Voltage Direct Current (HVDC) interconnector, which will link the electricity grids of Ireland and Britain. The total length of the interconnector from the Irish connection point at Woodland, County Meath, to the UK connection point at Deeside in Wales, is approximately 260 km, of which 185km is under the Irish Sea. I am advised that EirGrid expects the contract for design and construction of the interconnector to be completed shortly, when the successful bidder will be announced. Financing options for this project are being pursued by EirGrid with the objective of achieving the most cost-effective and efficient financial package. Until the tendering and finance process is complete, it would not be appropriate to specify the estimated cost of the project.

The European Commission has included the East-West Interconnector on the list of energy projects under the European Economic Recovery Package, which was endorsed by the European Council last week. The European Council called on the Presidency to accelerate contacts with the European Parliament with a view to the reaching agreement on the package before the parliamentary recess. Any funding available under this package will be used to offset the total capital cost of the interconnector.

The interconnector will, as a national strategic asset, remain in public ownership and will be owned and operated by EirGrid. State ownership of this strategic energy infrastructure will ensure that costs are minimised and benefits are passed along to consumers. EirGrid will run the interconnector on an open access basis. Under EC Regulation 1228/2003, which sets out rules for cross-border transactions within the electricity sector, users of the interconnector will be charged for utilising interconnector capacity when demand is greater than availability. At other times, EirGrid will recover the cost of the interconnector through transmission charges. However, EirGrid estimates that the benefits provided by the interconnector in terms of enabling greater competition and facilitating greater wind penetration will more than offset the costs of the interconnector and deliver a net benefit to consumers.