Gerry Adams (Louth, Sinn Fein)
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1110. To ask the Minister for Communications, Energy and Natural Resources the progress that has been made in further interconnectivity North-South and East-West to facilitate security of supply and enhanced competition, arising from the joint statement by the Irish and British Governments in March 2012; and if he will make a statement on the matter. [22301/15]

Alex White (Dublin South, Labour)
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This Government remains committed to the principle of renewed and strengthened co-operation between Great Britain and Ireland, as set out in the March 2012 Statement referred to by the Deputy. On 27 March 2015 EirGrid published a new independently peer reviewed draft Strategy ‘Your Grid, Your Views, Your Tomorrow’, which allows for the achievement of an optimal balance between the competing demands of publicly consulting on necessary network development, choosing the best emerging technology options for that development, and minimising new build.

The draft strategy noted the fact that Northern Ireland is likely to need to import more generation from Ireland during times of peak demand in the next decade, in order to balance supply and demand and to maintain security of supply. Accordingly, the draft strategy found that there remains a clear need for the North South transmission line, and that the existing proposal for a 400kV overhead line remains the most appropriate solution for the project. I understand that EirGrid intends to lodge the planning application with An Bord Pleanála today (9 June).

In the context of Ireland’s transition to a competitive, low carbon energy system, the draft strategy states that investment in the electricity grid within Ireland will need to be complemented by EirGrid exploring opportunities for increased regional interconnection to other countries. The 260km East West Interconnector, which is a 500 MW High Voltage Direct Current (HVDC) link between the electricity transmission grids of Ireland and Great Britain, has been in full commercial operation since May 2013. EirGrid reports that the interconnector has performed very well to date and that the company’s customer base has expanded to include energy traders between the all-island and Great Britain electricity markets. The East West Interconnector has also opened up the Single Electricity Market (SEM) to enhanced competition, delivering downward pressure on the wholesale market price of electricity.

There was detailed analysis of the potential for renewable energy trading between Ireland and the UK following the signing of a Memorandum of Understanding (MOU) on the issue in 2013 between my Department and the Department of Energy and Climate Change in the UK. The signing of the MOU represented the first step towards an Inter-Governmental Agreement (IGA) on the issue. However, by April 2014, it had become apparent that, given the economic policy and regulatory complexities involved, and the key decisions yet to be taken by the UK, any potential renewable energy trading could only occur post 2020.