Bernard Durkan (Kildare North, Fine Gael)
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Question 177: To ask the Minister for Communications, Energy and Natural Resources the position in regard to construction of the east-west interconnector; the degree to which the project has been advanced; and if he will make a statement on the matter. [24335/09]

Eamon Ryan (Dublin South, Green Party)
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The Government has recently announced that it has given approval to the development by EirGrid of the East-West Interconnector. The East-West Interconnector is a 500 Megawatt High Voltage Direct Current (HVDC) interconnector, which will link the electricity grids of Ireland and Britain.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 on to consumers.

The benefits for the economy, the energy market and consumers include: Enhancing security of energy supply by delivering additional capacity to the all-island electricity market and linking it to the UK, which is in turn connected to mainland European markets; Underpinning delivery of Ireland's renewable generation targets by providing additional back-up at times of low wind and enabling the export of wind energy from Ireland at times of high wind generation; Supporting further competition in the electricity market and exerting downward pressure on prices; diversifying the national fuel mix and supply sources by reducing our dependence on electricity generated from imported natural gas; and providing EirGrid, as the system operator, with important back-up and reserve services. The Electricity Regulation (Amendment) (EirGrid) Act 2008 provides the necessary legal basis for EirGrid to construct, own and operate an interconnector.

In a strong endorsement by the European Union of the project, Ireland has secured €110 million for the East West interconnector under the European Economic Recovery Plan. The contract for the development of the East West interconnector has been recently awarded to ABB on foot of an open, tender process conducted by EirGrid under the regulatory oversight of the Commission for Energy Regulation (CER). Working closely with the CER and with the Department, EirGrid is progressing the project to schedule for completion and operational start up by 2012. The project is on track to meet the completion date subject to the outcome of the planning processes, which are currently under way.