Electricity interconnector with Europe considered

The Government is considering the possibility of building a further electricity interconnector with the European mainland, according to Minister for Communications, Marine and Natural Resources Noel Dempsey.

Outlining details of the interconnector with Wales, which is to be completed by 2012 at the latest, Mr Dempsey told the Dáil there was a possibility of a further interconnector either with Britain or continental Europe.

He said the interconnector with Wales would be funded by the Exchequer because it was part of the State's infrastructure and it would remain in State hands, run by EirGrid.

"Planning for decisions on further interconnection with Britain or potentially with the European mainland will begin in 2010," he said.

Green party spokesman Eamon Ryan asked why it was taking so long.

"I've seen so many reports, so many consultants . . . This should have been a critical project which was fast-tracked and I'm concerned that it's been sitting for three or four years, people gazing at it rather than doing anything on it," he said.

The Minister said, however, that "this is one of the dilemmas we always face in Government. Sometimes you get accused of moving too fast on something and not thinking things out and not foreseeing all the difficulties and in other cases maybe things go on for a long time before we get from the concept to the project itself."

But he said the delay in this case saved between €200 million and €300 million because a decision had been made in principle to have two 500 megawatt interconnectors.

But a report commissioned from KPMG said that "two 500 megawatt lines would not be desirable and might have the opposite effect that we would want. It at least brought that out and we probably saved ourselves €200 million or €300 million in relation to that." Labour's spokesman Tommy Broughan asked about the ultimate cost of building such infrastructure and its impact on the ESB.

"What is its intended route?" he asked. "What implications, if any, will selecting the developer on a hybrid basis have for the State? What impact will the interconnector have on the electricity market when it is opened in 2012?"

Mr Dempsey said he had heard a "ball-park figure of €500 million on a number of occasions, but I would not go to the wall on that. The cost could be higher or considerably lower than that when the necessary works at each end are taken into account. Until I have more detail on the specifics of the route, seabed surveys and so on, it is pure guess work." But the interconnector would provide 500 megawatts, available "at the flick of a switch".

"It will increase the opportunity for other operators to buy electricity from companies other than those in the small pool in Ireland currently and sell it on in the domestic market. That should help competition and consumers regarding price."