Eirgrid project could cost €800m less

EIRGRID — the operator of the national electricity grid — estimates the cost of strengthening the transmission system for the next 25 years could come in €800 million under budget.

The body’s Grid25 project was initially expected to cost about €4 billion.

However, at the publication of its annual report and financial results for 2010, Eirgrid said that due to a combination of the introduction of new technology, the refining of grid projects and the overall reduction in electricity demand, “Grid25 could be delivered at a cost of 20% lower than previously estimated”.

This could see it cost €3.2bn in comparison, but further savings could be made also.

“Our ongoing analysis shows that reductions are possible, while at the same time delivering a 21st century grid for the people of Ireland.

“We’ll continue to engage with the Commission for Energy Regulation to ensure the efficient delivery of this infrastructure,” said Eirgrid chief executive Dermot Byrne.

Eirgrid also reported strong financial results for the year to the end of last September.

Its pre-tax profits were up, year-on-year, from just over €9.4m to nearly €13.9m.

Operating profit went from €9.4m to €15.65m, while there was a marginal increase in annual revenue to €443.8m.

The report detailed how electricity demand had dropped by 5% since 2008, but stabilised in recent months to a small increase. Eirgrid hopes to generate 40% of electricity from renewable sources by 2020.

The company said that funding has been secured for the east-west interconnector project, linking Ireland and Wales, which is set to be completed next year.

The company will re-apply for the rights to develop a north-south interconnector later this year.