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Interconnector to reduce electricity costs

Electricity - Increased competition
Electricity - Increased competition

Electricity customers can expect lower prices within three years, following Government approval for the construction of a €600m interconnector between Co Meath and Wales.

The Minister for Energy and Natural Resources, Eamon Ryan, said the interconnector would create jobs, increase competition and enable Ireland to sell wind-generated electricity into Britain.

The interconnector is a 260km high-powered electricity cable which will link Woodland, Co Meath, with Deeside, Wales, by 2012.

Ireland is already connected to Scotland via Northern Ireland.

The direct connection is deemed critical by the Government because Ireland intends, in just over a decade, to generate 40% of all electricity from renewable sources, like wind power.

The interconnector enables Ireland to sell excess supply to Britain.

It also provides security of supply as electricity from Britain can be imported in the event of a shortfall.

The Commission for Energy Regulation says the interconnector will increase competition, as British electricity generators will be able to sell power to Ireland, which will drive down prices.

Brussels is giving over €100m for the project, while the remaining €500m will mostly be borrowed by electricity grid operator EirGrid.

Electricity users will pay small tariffs over the life of the interconnector.