Ireland is to receive €0.5 billion from the European Investment Bank to upgrade our electricity grid and deliver cheaper prices to consumers.
The EIB will lend Eirgrid up to €300m towards the construction of a 256km cable between Ireland and Wales. The East-West interconnector will enable the import and export of excess wind power and will also improve security of supply for the country.
The ESB will receive up to €200m in loans to develop its renewable energy business by installing 284 mega watts of wind power capacity by 2012 in various locations.
Today's announcement bring the total loans for 2009 from the European Investment Bank in Ireland to €760m, almost double 2008's total of €450m.
'Ireland is very dependent on imported fossil fuels, but has huge potential for wind power. Both these projects help Ireland in its ambition to go green and secure future energy supplies, helping Europe as a whole meet its climate change goals,' commented EIB Vice President Plutarchos Sakellaris.
'The EIB is particularly happy to be able to support Eirgrid and the interconnector, which was identified as a key project in the European Economic Recovery Plan endorsed by EU leaders last year,' he said.
'The ESB loan is also our first to the renewables sector in Ireland, where we hope there will be many more opportunities for co-operation in the future,' he added.
The European Economic Recovery Plan proposes spending €4 billion this year and next on key energy projects to help counter the effects of the financial crisis.
The European Investment Bank is the bank of the European Union. It was set up under the 1957 Treaty of Rome with a mandate to support EU policies. It has six priority areas of its lending - poorer regions, the environment, transport and energy networks, SMEs, innovation and research and secure and sustainable energy supplies.
