Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 221: To ask the Minister for Communications, Energy and Natural Resources the position regarding the provision of gas and electricity interconnectors North, South, east and west; if it is anticipated that such facilities will contribute to a reduction in costs here; and if he will make a statement on the matter. [16150/11]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

The enhancement of regional co-operation, including improved interconnectivity between Member States, is a key objective of both the EU Energy Third Package and the EU Regulation on Security of Gas Supply.

The vast bulk of Ireland's gas demand is supplied from Great Britain through two interconnector pipelines between Ireland and Scotland. The Scotland Northern Ireland Gas Pipeline (SNIP) brings gas from Scotland to Northern Ireland. In addition, the South-North interconnector, running from Gormanstown in County Meath to Ballyclare in County Antrim, provides security of gas supply to Northern Ireland customers in the event of a gas supply disruption.

My Department and the Commission for Energy Regulation (CER) are currently working with their counterparts in Northern Ireland to put in place an all-island gas market by October 2012. The primary objective is to ensure that all stakeholders on the island can buy, sell and transport natural gas and that the market can be operated effectively on an all-island basis for the benefit of consumers.

At the Government's request, EirGrid the State owned transmission system operator, is building the East West Interconnector between the electricity grids of Ireland and Britain. The construction and operation of the East West Interconnector is the responsibility of EirGrid. This national strategic project is on schedule and on budget for delivery by 2012. The full cost of the Interconnector is underwritten by all electricity customers under the regulatory model implemented by the CER.

Electricity interconnection between Northern Ireland and Scotland is provided by the Moyle Interconnector which has a capacity of 500MW.

The European Commission is giving particular strategic priority to strengthening electricity interconnection across Europe. The strategic importance of the East West Interconnector project was recognised by the Commission with the granting of aid of €110 million for the project in 2009 as part of the economy recovery support package for European interconnection and energy infrastructure. The East West Interconnector will enable the import and export of electricity between Ireland and Britain. It will underpin the progressive integration of the two electricity markets and will support the further integration of wind onto the Irish energy system. It will also bring improved security of supply and increased competition in the single electricity market.

My Department and the CER will continue to work with counterparts in Northern Ireland and Great Britain to foster greater physical connectivity in electricity, improved security of supply and increased competition in the electricity and gas markets on the two islands for the benefit of consumers. Greater competition should help to keep downward pressure on generation costs and prices. Interconnection in the appropriate market and regulatory framework may also assist in this process, depending on how the relative prices in both jurisdictions compare over time and on how they incentivise trading in either direction.