Michael Moynihan (Cork North West, Fianna Fail)
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540. To ask the Minister for Communications, Energy and Natural Resources if he will provide an update on the Grid 25 project; the amount that has been spent on this project to date; and if he will make a statement on the matter. [44092/14]

Alex White (Dublin South, Labour)
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EirGrid’s Grid25 strategy is a major initiative that involves building 800km of new transmission and upgrading 2,000 km of existing lines. It comprises over 100 projects ranging from large projects such as the North South transmission line, to smaller projects such as upgrades of existing lines. Grid25 will provide capacity to facilitate regional economic development, together with job creation and growth. It will allow for long term growth in the demand for electricity and ensure the efficient operation of the All Island Single Electricity Market. It will reduce our dependency on imported fossil fuels by putting the infrastructure in place to enable us use our own natural resources, and to reach our 2020 renewable energy target.

The overall Grid25 Strategy was forecast to cost up to €4 billion at its launch in 2007. EirGrid reviews all projects and strategies at regular intervals to take into account relevant developments including economic conditions and electricity demand forecasts. In 2010, a review of Grid25 resulted in EirGrid reducing the estimated cost of the programme to €3.2 billion. EirGrid is currently undertaking a further review, with the outcome expected in Q1 2015.

The issue of how the various projects under the Grid 25 Strategy will be financed is a matter for EirGrid and not one in which I, as Minister, have a role. However, in relation to network investment costs, the Commission for Energy Regulation undertakes reviews of such costs incurred by both EirGrid and ESB every five years with additional monitoring carried out annually, with a view to ensuring that the significant network investment needed is efficient and delivered at the lowest possible cost to electricity consumers, while also ensuring security of supply and greater fuel diversity.