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Electricity Transmission Network

Dáil Éireann Debate, Tuesday - 25 March 2014

Tuesday, 25 March 2014

Questions (614, 615, 616)

Michael Moynihan

Question:

614. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the amount spent on EirGrid's Grid25 project to date; if he will provide in tabular form the cost of public relations, consultancy costs and advertising costs since 2011; and if he will make a statement on the matter. [13528/14]

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Michael Moynihan

Question:

615. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the way the Grid25 project is being financed; if this will increase the cost of electricity to consumers; and if he will make a statement on the matter. [13529/14]

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Michael Moynihan

Question:

616. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if the Grid25 project is a point to point project; his views that this will best serve the regions of Ireland; and if he will make a statement on the matter. [13530/14]

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Written answers

I propose to take Questions Nos. 614 to 616, inclusive, together.

EirGrid’s Grid25 strategy to upgrade the national transmission system between now and 2025 is a major initiative, involving an investment of €3.2 billion, which will put in place the safe, secure and affordable electricity system that the State requires. It will involve extensive work throughout the country, including building 800km of new transmission and upgrading 2,000 km of existing lines.

Grid25 will reduce our dependency on imported fossil fuels by putting the infrastructure in place to enable us use our own natural resources, help us create less carbon waste and enable us to reach our 40% targets for the generation of electricity from renewable sources by 2020. It will also provide capacity to facilitate regional economic development, together with jobs creation and growth, alongside the development of renewable energy sources. It will allow for long term growth in the demand for electricity and ensure the efficient operation of the All Island Single Electricity Market.

The Government does not direct EirGrid to particular sites, routes or technologies. However, the July 2012 “Government Statement on Transmission and other Electricity Infrastructure” does require EirGrid to take account of all relevant national and international standards, and to follow best practice and ensure value for money. Decisions on both siting and technologies for energy infrastructure are matters for the developers and for the forward planning process, through regional and local development plans and at project level through the development management process.

The issue of how the various projects under the Grid 25 Strategy will be financed, and the breakdown of associated expenditure by the company on public relations, consultancy and advertising are all matters for EirGrid and not matters in which I have a function. However, in relation to network investment costs, the Commission for Energy Regulation (CER) undertakes reviews of such costs incurred by both EirGrid and ESB every five years with additional monitoring carried out annually. The purpose of these reviews is to ensure that the significant network investment needed is efficient and delivered at the lowest possible cost to electricity consumers, while also ensuring that the grid investment necessary to enable greater fuel diversity (i.e. renewables) and security of supply is achieved.

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