Plan for all-island energy market unveiled

An all-island energy market moved a step closer today with the publication of a draft Energy Market Framework for consultation.

The document charts the way forward for the creation of an all-island energy market and sets out strategic objectives and key priorities to be achieved over the next three years.

It was published by Minister for Communications, Marine and Natural Resources Dermot Ahern and Northern Enterprise Minister Barry Gardiner.

For the first time, a joint Republic of Ireland-Northern Ireland understanding of what constitutes an all-island energy market and the policy context in which the development of the market will take place, is defined.

The policy reflects the importance of the EU dimension and the increasing impact the achievement of environmental objectives have on the development of energy polices.

Mr Gardiner said the draft framework was a critical and essential part of the process of developing an all-island energy market – something which he fully supported.

“The all-island market should deliver improved services and economic benefits to customers north and south.

“It will also support continued economic growth throughout the island. I look forward to constructive and productive discussions on the draft framework over the next few months,” he said.

Mr Ahern said publication was a very significant step forward in the process of north-south co-operation in the energy sector. “It marks the beginning of an exciting new phase in these discussions”.

Mr Ahern said in the past the principle focus for co-operation had been on the importance of developing a shared infrastructure.

But he said: “In this key new phase, while we continue to press ahead with infrastructure developments, we are also moving specifically to harmonise policies and practices in energy markets.”

The ministers invited the energy market, energy consumers and any other interested parties to make submissions on the draft document by August 27.

A joint steering group – with representatives from the two governments and regulators on both sides of the border – is overseeing the drive for an all-island market.

Its six priority areas are:

:: Cross-border trading in electricity.

:: Electricity system interaction and integration.

:: An all-island gas network.

:: Co-ordination of regulatory activities.

:: Climate change, emissions and renewable energy.

:: Energy efficiency policies.

Viridian, parent company of Northern Ireland Electricity, welcomed publication of the draft framework.

Harry McCracken, managing director of Viridian Power and Energy, said the company welcomed any step that created a better context for an all-island market.

“An efficient all-island market that encourages new entrants and further interconnection is necessary to provide customers with real choice and competitive prices,” he said.

Viridian's share price was unchanged at 12.30pm today, at €9.30 on the ISEQ.