EirGrid secures €160m funding for Ireland-Wales electricity link

EirGrid has today announced that a further €160m in funding has been secured for its Ireland to Wales electricity link.

The funding comprises commercial debt from Barclays and BNP Paribas.

The funding for the project includes the €160m announced today, as well as EirGrid equity, European Investment Bank finance (€300m) and the European Energy Programme for Recovery (EEPR) grant (€110m).

The East West Interconnector Project has a total capital cost of €601m and involves the construction of an interconnector to link the Irish Transmission System to the British Transmission System, enabling the two-way transmission of electricity, running from Meath to the Deeside in Wales.

"We are delighted that the commercial funding at very competitive rates has been secured especially at a time when economic conditions are difficult," said EirGrid chief executive Dermot Byrne said.

"Design and manufacture of the interconnector cable is underway, with construction due to commence in June this year. As an island country, Ireland is on track to tie into the greater European energy market in just two years.”

Deloitte, the business advisory firm, with Arthur Cox Solicitors, advised EirGrid on all financial and legal aspects throughout the funding process.

Michael Flynn, Corporate Finance Partner at Deloitte said: “We are delighted to have advised EirGrid throughout the funding for this project and that its total required funding has now been successfully raised.”

The interconnector, which will be approximately 260km long, can carry 500 megawatts of electricity – the equivalent of supplying power to approximately 300,000 homes and is due for completion in 2012.

This capacity approximates to 10% of peak daily electricity demand in winter in Ireland.