All-Ireland energy market required, conference told

Building blocks should be put in place to create an all-Ireland energy market in preparation for a fully integrated European single market, the Energy Ireland conference heard today.

Delegates heard that the European strategy is to develop regional markets as stepping-stones to a full European market and the creation of a British - Irish market is a key part of this strategy.

A major interconnector between Great Britain and Ireland has already been given priority status under the EU Commission's Trans European Network System (TENS).

However, to achieve an effective all-island market, it will be necessary to achieve harmonisation at several levels.

Recent studies have shown that the current operation of the Irish electricity system may be up to 10% more expensive than operating in a larger, more flexible market, because of associated costs in the Republic.

Speaking at the conference, Michael McNicholas, Executive Director for ESB's Power Generation and Supply divisions said: "This is a very complex undertaking and will require significant commitment from all parties involved in both markets.

"It will be necessary to achieve harmonisation at several levels. At a strategic level, there will need to be consistency between energy policy, legislation and regulatory structures.

"The implementation of the necessary systems by the ESB to support the full domestic market opening in 2005 will ensure that the Republic is well positioned for an all-island market in the future," McNicholas concluded.