Government to build underwater power link to UK

National grid operator Eirgrid has asked firms to tender for the design and manufacture of the East West Inter-connector (EWI) project.

The contract includes supplying the underwater cable and building converter stations in Ireland and Britain.

The inter-connector will provide another source of electricity for Ireland which currently has the fastest-growing demand in the EU.

The link could drive down household electricity prices and increase competitiveness for firms by lowering energy costs.

“The growing population and the closure of some ESB stations has increased fears of future blackouts due to over-capacity on the national grid,” one insider said.

Demand for electricity in the state is expected to increase by about 3% per annum up to 2010.

The EU is seeking to build more inter-connectors to create a single integrated electricity market.

Studies on the East-West Inter-connector (EWI) project began in the 1970’s when the ESB first examined the possibility of linking the UK and Irish electricity grids.

Further studies were conducted in the early 1990s and a joint study was recently conducted between ESB and the UK National Grid with the support of the EU.

Meanwhile, the Government is commissioning a study of where the county will get its oil when reserves in the North Sea dry up.

Ireland is heavily dependent on oil as an energy source – dominance increased from 46% in 1990 to 53% in 2006.

“Ireland’s consumption of oil has risen rapidly over the past decade as a result of economic growth,” said a spokesman for the Department of Communications, Marine and Natural Resources.

“In terms of sources of commercial oil supply, Ireland’s oil industry is highly dependant on supplies from the North Sea.

As North Sea reserves become depleted, oil companies importing oil into Ireland will be seeking alternative sources of supply.“