State may have to match EU grants for electricity

The Government will have to match €100 million from the EU towards constructing high-tension electricity cables between Ireland and Britain and put the grant out to tender, according to the European Commission.

Transport Minister Eamon Ryan made it clear that the money was earmarked for the state-owned EirGrid interconnector and that it is awaiting planning permission.

But Imera, a privately owned company with permission to build three interconnectors between Ireland, Britain and France, says it wants 75% of the money. Imera’s chief executive, Rory O’Neill, is due to meet Minister Ryan today when he will make the case for a share of the funding.

Commission spokesperson Mark Grey said the money would go directly to the Government who would decide how to distribute it. The Government will also have to match up to 50%, he said.

Imera, a Norwegian-owned company, says its plans are more advanced than EirGrids’ and their first interconnector, between Arklow and Pentir in north Wales will be working next year, enabling electricity to be traded between both countries.

The commission’s plan to help stimulate member states’ economies by putting €5bn of EU budget into energy and broadband infrastructure was agreed by EU leaders at their last summit.