Minister for Communications, Energy and Natural Resources Pat Rabbitte is to seek Cabinet approval for legislation to allow for the sale of Bord Gáis Energy (BGE).

The Government is selling the State company’s energy business, said to be worth over €1 billion, as part of an overall programme of asset disposals agreed with the EU/IMF troika and aimed at raising €3 billion for the exchequer.

Speaking on RTÉ’s Morning Ireland, Mr Rabbitte said: “The legislation I am bringing to the government today for clearance is to enable the disposal of Bord Gáis Energy and to create a new company which is the networks company that will be there to distribute gas.”

Mr Rabbitte said the sale could facilitate the injection of funding into rural broadband, adding that the Troika would want to see how Ireland was spending the proceeds.

The Bord Gáis portfolio includes wind farms with the capacity to generate up to 250 mega watts of electricity - around half what an average gas power plant can produce - plus a similar amount in various stages of development.

Bord Gáis formally announced in May that it has begun the sale of its energy division, which supplies electricity and natural gas to businesses and consumers, opening the door to potential bidders.

The sale is expected to yield between €1 billion and €1.5 billion.

“There has been a healthy interest in this company. That’s not surprising because it has been a very successful company. It has been successful company for example in diversifying into renewables,” Mr Rabbitte said.