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North-South Interconnector

Dáil Éireann Debate, Tuesday - 18 December 2018

Tuesday, 18 December 2018

Questions (88, 527)

Thomas Byrne

Question:

88. Deputy Thomas Byrne asked the Minister for Communications, Climate Action and Environment his policy on the North-South interconnector. [53183/18]

View answer

Thomas Byrne

Question:

527. Deputy Thomas Byrne asked the Minister for Communications, Climate Action and Environment the status of the North-South interconnector. [52796/18]

View answer

Written answers

I propose to take Questions Nos. 88 and 527 together.

The single electricity market for the island of Ireland has brought many economic and social benefits, both north and south.

The enduring success of the single electricity market depends critically on the degree of interconnection. Currently just 300MW of electricity supply across the existing north south interconnector is permitted so as to ensure that electricity is securely provided to customers. The new north south interconnector will facilitate substantial increases in capacity transfers, thereby facilitating a more effective single electricity market.

Interconnection helps ensure that only the most efficient and low carbon generation is brought onto the grid. The interconnector also substantially increases the capacity to connect up to an estimated 900 MW of renewables to our grid. Currently 30% of our electricity comes from renewables but as part of our strategy to meet our climate commitments we need to almost double that proportion.

The North South interconnector has been subject to economic analysis and the benefit to cost ratio is very positive. The interconnector is expected to bring savings in the single electricity market of €20 million per annum from its inception, rising to between €40 million and €60 million per annum by 2030. Much of these savings result from reductions in network constraints that will accrue from its delivery.

The project has received planning consent in Ireland and Northern Ireland; however, these decisions are the subject of ongoing legal challenges in both jurisdictions. The development of the interconnector including associated procurement activities is an operational matter for EirGrid and ESB Networks.

The Generation Capacity Statement (GCS) 2018 covers both Northern Ireland and Ireland, and is produced jointly between the System Operator for Northern Ireland and EirGrid. This is in line with their regulatory requirements to publish forecast information about the power system including an assessment of the balance between supply and demand. The Generation Capacity Statement is updated annually to ensure adequate capacity is available in the market on an all-island basis and to plan accordingly.

I am advised that the increase in generation capacity as shown in the Generation Capacity Statement published by the Transmission System Operators does not impact on the need for the interconnector. It is also important to note that the increase in Northern Ireland generation capacity shown is likely to be temporary in nature. The main increase is from the assumed continued availability of the coal fired Kilroot generating units and two of the older less efficient Ballylumford units. The long term continued operation of these generators is not sustainable in the context of decarbonisation of the industry.

In fact since the Generation Capacity Statement was published, the Utility Regulator for Northern Ireland granted derogation requests on 9 November to AES for the two Ballylumford units, totalling 250MW, from the requirement to give three years' notice of closure.

Question No. 89 answered with Question No. 77.
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