A plan to build a private 1,000 mega watt (MW) electricity interconnector between Ireland and Wales was approved today by the Minister for Communications, Mr Dermot Ahern.
The project is expected to cost in the region of €400 million. Building work "could get under way by 2006", according to the Minister. The interconnector will be constructed, managed and owned by the private sector.
Announcing his decision, Mr Ahern said he intends "asking the Commission for Energy Regulation (CER) to promote the development of merchant interconnectors to be constructed, managed and owned by the private sector".
"In the event that the market does not respond, I will ask the CER to host a tender competition for construction, management and ownership of regulated interconnectors," he added.
The additional capacity will secure electricity supply for the State, provide increased competition and integrate Ireland into the wider European energy market.
Building the sub-sea cable for the two 500MW interconnectors will be one of the largest engineering projects undertaken in the State.
The Minister also announced today that he was establishing a Renewables Development Group to foster electricity generation by renewable sources.
A third initiative announced today is the expansion of CER from a one-person to a three-person Commission. Mr Ahern said this move was permitted under the Electricity Regulation Act of 1999.