Irish-Welsh interconnector awarded £99 million grant
Monday 08 March 2010
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| The European Commission has granted the Irish government £99m to build an electricity Interconnector linking Ireland and Wales |
A project to build an electricity Interconnector linking Ireland and Wales has been awarded a €110 million (£99 million) grant from the European Commission, following a successful application by the Irish Government.
The project developed by Irish state-owned transmission company EirGrid is set to assist with the development of renewable energy generation by allowing generators either side of the Irish Sea to export electricity along the 260km long high-voltage direct current (HVDC) cable link.
Construction is due to start this summer and, when completed in 2012, the cable is expected to be able to carry 500MW of electricity. Swedish power engineering firm AB Group is set to design the connector, install cables and construct converter stations.
This funding for the EirGrid €600 million (£540 million) interconnector is part of a suite of energy projects being targeted for investment by the European Commission as part of their €4 billion economic stimulus package "Investing today for tomorrow's Europe".
The project raised a significant part of this sum in September, when it was granted a loan of up to €300 million (£270 million) from the European Investment Bank (see this NewEnergyFocus.com story).
EirGrid chief executive, Dermot Byrne said that as well as boosting renewables, the interconnector would also enhance security of supply in Ireland and Wales and encourage more competition to enter the market, which in turn would benefit consumers.
He said: "As an Island country, interconnection with other countries offers us great opportunities as confirmed in our recent report on economic feasibility of further interconnection.
"Clear advantages identified are enhancement of security of supply, increased competition in the market and an ability to integrate greater quantities of renewable generation which in turn reduces dependency on fossil fuel imports".
Günther Oettinger, European Commissioner responsible for energy confirmed the grant and emphasised the criticality of such projects.
"Never before has the Commission agreed such an important amount for energy projects.
"We have selected key projects which will help creating a more integrated energy network in Europe ensuring flexible energy flows across Member States' borders."
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