Seán Conlan (Cavan-Monaghan, Fine Gael)
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Question 16: To ask the Minister for Communications, Energy and Natural Resources if he considers it financially prudent, from the perspective of the taxpayer, that Eirgrid is contemplating proceeding with a new application in relation to the proposed 400 km Meath to Tyrone interconnector when the all Ireland generation capacity statement 2011-2020 published jointly by Eirgrid and Soni forecasts that there will be no increased demand for electricity for the next ten years. [10827/11]

Seán Conlan (Cavan-Monaghan, Fine Gael)
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Question 32: To ask the Minister for Communications, Energy and Natural Resources if he considers it financially prudent from the perspective of the taxpayer that Eirgrid is contemplating proceeding with a new application in relation to the proposed 400 km Meath to Tyrone interconnector when it appears that it may take many years before the northern section of the project is evaluated by the Planning Appeals Commission of Northern Ireland. [10841/11]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 16 and 32 together.

The planning, development and routing of transmission line infrastructure is a matter for EirGrid, which is the State owned body responsible for the electricity transmission system. I have no statutory function regarding the planning and construction of energy networks.

The Government fully endorses the strategic national importance of investing in Ireland's electricity transmission infrastructure. In that context the Meath-Tyrone 400KV interconnector is a key strategic project for the economies and consumers both North and South. It is also critical to ensuring energy supply adequacy on the island of Ireland. Subject to planning permission North and South it is due to be completed by 2016 or 2017.

The costs of building and maintaining the national electricity transmission system are met through network tariffs charged to electricity consumers and are regulated by the Commission for Energy Regulation. The cost is not borne by the taxpayer.

The all-island Generation Capacity Statement 2011-2020 notes that while there has been a fall in electricity demand due to the economic downturn, a recovery in electricity demand is projected from 2012 and annually up to 2020. The report notes separately that the generation adequacy situation for the next ten years is positive and will be enhanced by the additional capacity provided by the interconnector.

The North-South interconnector is a long term investment which is critical to the security of electricity supply on the island, to the achievement of renewable targets North and South, and to the effective operation of the Single Electricity Market. It is not just a prudent but an essential investment in the interests of both economies and all energy consumers.

The absence of the second North South interconnector is posing significant costs on electricity generators and consumers on both sides of the border. These costs are in the region of €20m to €30m each year and are set to increase every year the interconnector is not in place.

I have no information to support the assertion that it will take many years before the Northern Ireland section of the Interconnector project is evaluated by the planning authorities there. The timeframe for the completion of the planning process is clearly a matter for the planning authorities in Northern Ireland. The necessity and urgency of the project is fully recognised by the Northern Ireland administration given the very serious implications for energy cost and security of supply should the project not proceed.

The current economic downturn does not diminish in any way the need for the North South interconnector as a long term strategic investment for decades to come. To postpone its development would not be in the interests of the economy and consumers North and South.

The Programme for Government commits to the establishment of an independent international expert commission to review within six months the case for, and cost of, undergrounding all or part of the Meath-Tyrone line.

EirGrid has begun a new round of non statutory public consultation in relation to the Meath–Tyrone interconnector preparatory to a formal new application to An Bord Pleanála. A key aspect of the pre-planning process is an assessment of the environmental and agricultural impacts. This needs to be carried out in the growing season.

This preparatory work by EirGrid does not in anyway pre-empt or undermine the Programme for Government commitment. There is no requirement in the Programme for Government that EirGrid should halt all preparatory work and EirGrid has publicly stated that they will fully cooperate with the review and have due regard to its findings.

As soon as I am satisfied with arrangements for the proposed commission I will be announcing its establishment and I have asked my Department to expedite those arrangements in the coming weeks.