Dublin-based energy firm Imera has been awarded licences by the UK regulator Ofgem to build two power interconnectors between Ireland and Wales. Laura Slatteryreports.

Imera, which yesterday merged with the Norwegian-listed power firm Oceanteam, is now conducting an environmental assessment of the seabed for the €170 million first phase.

A ship is preparing to leave Liverpool to conduct the final route survey for the first interconnector, known as EW1, which will add 7 per cent to Ireland's energy capacity by 2010. It will be the first interconnector to supply the Republic directly with electricity generated in the UK and Europe.

Imera will today lodge an authorisation to construct document with the Irish energy regulator and planning permission with An Bord Pleanála.

Construction of the interconnector, which will run from a substation in Arklow, Co Wicklow, to Pentir in North Wales, will begin next summer, according to Imera chief executive Rory O'Neill, who is one of the private backers of the company.

No timeline has yet been specified for work on the second interconnector, which will eventually add another 7 per cent capacity to the Irish grid. The interconnectors, which will be designed and installed by Swedish multinational ABB, are 350 megawatt high-voltage cables.

"We are confident that we will bring this project on stream on time and on budget and will add a total of 14 per cent capacity on Ireland's energy demands," said Mr O'Neill, who added that they would lead to increased competition and lower energy prices.

The project will also create an export market for off-peak renewable energy generated in Ireland, which Mr O'Neill said could be used to power a hydro-plant in Wales that will be deprived of an energy source once a nearby nuclear power station closes.