EirGrid, the Irish electricity grid operator, should propose the development of a second interconnector between Ireland and France to manage security of supply and to help keep consumer prices down, the Institute of International and European Affairs has argued.
In a paper authored by economics researcher Daire Lawler and climate and energy policy researcher Luke O’Callaghan-White, the Dublin-based think tank proposes recommendations to “future-proof” Irish and EU energy systems.
It argues there is a risk that Irish Government fiscal stimulus, designed to help consumers with energy costs, will result in further demand-led inflation, placing the onus on central banks to “act aggressively” to contain spiralling inflation.
“The short-term measures announced by the Government to tackle energy price inflation, while necessary, are a sticking plaster to cover the wound that resulted from structural issues and can only realistically provide short-term relief,” it says.
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“Retaining these measures over the longer term would risk precipitating further energy price inflation in Ireland, which in turn would result in even higher prices for consumers.”
It argues that electricity interconnection is a “strategically important tool” for Ireland and affects sustainability, security of supply, and competitiveness.
First interconnector
At present, Ireland has an electricity interconnector with Northern Ireland and with Britain. In May, An Bord Pleanála approved the Celtic Interconnector, which will be a subsea link facilitating the exchange of electricity between Ireland and France. The connection is expected to be operational by 2026, and once on-stream it will be Ireland’s only electricity interconnector to the EU.
“Electricity interconnectors can flow in both import and export directions,” the paper says. “This helps to lower the long-term costs of electricity for the consumer.
“At times of high prices in Ireland, interconnectors can facilitate the importation of cheaper electricity from other markets. Equally, interconnections offer an opportunity for increased energy exports to European markets when necessary.
“Ireland is in the process of scaling up its offshore wind capabilities. Ireland has considerable potential in this area, but to derive the full benefit of wind resources, greater grid interconnection will be crucial.”
In that regard, it says the Celtic Interconnector will be “an important asset” as Ireland accelerates its transition towards wind energy as a base for electricity generation.
“At present, there are no plans to develop another electricity interconnection between Ireland and France,” it continues. “EirGrid, the Irish electricity grid operator, should propose the development of a second interconnector between the two countries.
“For Ireland, in a future decarbonised electricity system, this connection will be necessary to manage security of supply and to help keep consumer prices down. As such, this proposal could be seen as a vital infrastructure project linking an island on the periphery of Europe to the EU’s electricity market.”
