James Bannon (Longford-Westmeath, Fine Gael)
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Question 17: To ask the Minister for Communications, Energy and Natural Resources the European funding which has been committed to subsidise the east-west interconnector; and if he will make a statement on the matter. [35536/09]

Eamon Ryan (Dublin South, Green Party)
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EirGrid is developing the East West Interconnector to schedule. The Government is fully committed to the cost effective delivery of the interconnector as a key strategic energy infrastructure project. The East West Electricity Interconnector is one of a list of high profile and strategically important interconnector projects included in the European Energy Programme for Recovery earlier this year with a grant of €110 million. This represents a strong confirmation of EU support for the East West Interconnector, which is designated a Project of European Interest and has already attracted some €3 million grant aid for the study phase under the EU Trans European Networks programme.

On 28th September last, the European Investment Bank announced that it is also supporting the project through the provision of a €300 million loan. This significant financial support will further facilitate the cost effective development of this strategic energy project to the benefit of Irish energy consumers and our overall energy infrastructure. The priority attached to this project by both the Government and the EU reflects the significant benefits which the East West Interconnector will deliver. The interconnector will underpin regional energy market development and the all-island Single Electricity Market. It will ensure that Ireland can benefit from and contribute to the development of a robust 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, in particular, offer opportunities for export of Irish wind generated electricity.