Security of energy supply is a key imperative for Ireland and the European Union. The relatively small size of the Irish electricity market underlines the need for greater interconnection as a means of enhancing security of supply, promoting competition and integrating the Irish electricity market into the wider European market. The Government is committed to deliver enhanced interconnection on the island of Ireland as well as with Britain as a priority. This is also the way forward envisaged at European level.
The Government has approved plans to secure the construction of a single 500 megawatt electricity interconnector between Ireland and Wales. The Commission for Energy Regulation (CER) has been requested to proceed with a competition to select a developer to secure the design and construction of this interconnector as quickly as possible. The CER has also been requested to arrange for EirGrid and ESB to expedite the technical work of route selection and necessary grid reinforcement works. The Government decision provides that the interconnector will as a key strategic asset remain in public ownership and will be owned by EirGrid.
EirGrid has commenced investigation as to the current state of technology and has held a number of meetings with converter station manufacturers, cable manufacturers and utilities. It is currently collating and reviewing sea-bed survey work previously carried out with a view to its currency and availability for use for this project. While work is progressing on the technical specification of the interconnector, the CER, in conjunction with EirGrid, is also finalising the competition structure and related contractual arrangements with a view to going to market as soon as possible. To underpin the development process, new arrangements have been made in respect of the construction and operation of future interconnectors in the Energy (Miscellaneous Provisions) Act 2006. The Act provides that the CER may, with Ministerial consent, secure the construction of an interconnector by one or more means, including by competitive tender. Such consent will be contingent on final Government approval.
In addition to the interconnector with Wales, the Government, working together with the Northern Ireland authorities, is progressing electricity interconnection initiatives in the context of the All-Island Energy Market. In this regard, the two transmission system operators, Northern Ireland Electricity and EirGrid, are progressing a second North-South electricity interconnector which will more than double the existing cross-border electricity transfer capacity to over 600 megawatts to be completed by 2011.
Planning for decisions in relation to further interconnection with Britain or potentially with the European mainland will be developed in the context of the forthcoming White Paper on Energy Policy.