Denis Naughten (Roscommon-Galway, Independent)
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The costs of development of the North South Interconnector are not borne by the Irish exchequer. The project will be funded in the same way as all other electricity and gas grid investments are paid for. Network costs are subject to approval by the Commission for Energy Regulation and charged by EirGrid, ESB Networks and Gas Networks Ireland to energy supply companies. The energy supply companies generally include these costs in customer bills.

EirGrid estimates that the cost of constructing the proposed North South Interconnector will be €286 million. €180 million of this will be incurred in Ireland with the remaining €106 million being incurred in Northern Ireland.  EirGrid’s expenditure on the planning phase of this project since its inception in April 2005 totals circa €35 million.

The proposed interconnector is a critical piece of energy infrastructure for the benefit of all people on the island of Ireland. It will further support the All-Island Single Electricity Market and lower costs for consumers. Those cost savings are envisaged to be in the region of €20 million per year from 2020, rising to €40-€60 million each year from 2030, shared between Ireland and Northern Ireland. Such cost savings ensure benefits for every home and business in the State, improving the competitiveness of businesses and the household disposable incomes of our citizens. On this basis I believe this proposed investment in our electricity infrastructure to be a sound one.

The section of the project in Ireland which received planning permission from An Bord Pleanála in December 2016 is currently the subject of judicial review proceedings. The planning process is still underway in Northern Ireland. Construction of the project is not planned to commence before 2018 and it is expected that it will be completed within three years.