Celtic Interconnector between Ireland and France to reduce energy bills, says Ryan

Building of the project is expected to start next year and is due to be completed in 2027, consumers likely won’t feel the effect of the project until 2027.

Green Party leader Eamon Ryan has said a new energy infrastructure between Ireland and France will bring down energy bills for households.

Taoiseach Micheál Martin and Minister Ryan as well as the French energy minister, Agnès Pannier-Runacher, witnessed the signing of the technical agreement and financing of the Celtic Interconnector between CEO of Eirgrid Mark Foley and Xavier Piechaczyk of Réseau de Transport d'Électricité (RTE) in Paris on Friday.

Building of the project is expected to start next year and is due to be completed in 2027, consumers likely won’t feel the effect of the project until 2027.

Minister Ryan also said he does not know exactly how much energy bills will be reduced by the project yet and it will depend on what the market price is at that time.

The project will cost €1.6bn with the European Commission giving €530m and €330m from the European investment bank.

The remainder of the cost will be split between Eirgrid and RTÉ France.

Minister Ryan said the project will give a significant return and he does expect the price of energy to be reduced on both sides of the sea once the project is up and running.

While the French energy minister said the Celtic Interconnector will allow for the supply of energy to 450,000 households.

Green Party leader Eamon Ryan has said a new energy infrastructure between Ireland and France will bring down energy bills for households. Picture: Gareth Chaney/ Collins Photos

Minister Ryan said the Interconnector will make most of whichever market is at a lower cost at the time and the flow will therefore head towards that direction.

He said the expectation is that gas is going to stay expensive for the next two to three years.

He said Ireland’s reliance on gas is what’s making our electricity expensive and war in Ukraine “is not ending soon.” 

Minister Ryan said: “I think in both countries [France and Ireland], we're going to see a massive expansion of renewable power and I think that gives us both the opportunity particularly as we develop offshore in that volume scale power to be able to ship and use our real comparative competitive advantage.

“When the wind is blowing in the west, it will flow from the west to the east. When the wind does not blow, we have this backup capability coming from France to help us meet our system needs. 

“That's the beauty of this. It matches, it's part of the balancing system between variable supply and variable demand and that's why I think all the engineering analysis going right the way back is that this is a win-win for both markets.” 

Speaking at a business breakfast at the Irish embassy in Paris on Friday morning, Taoiseach Micheál Martin said the Interconnector will bring tangible benefits to the citizens of both France and Ireland by promoting the use of renewable energy, bringing down electricity prices, and helping ensure the security of energy supply.

He said: “A remarkable 575km of cable will link my home County of Cork to Finistere in Brittany to bring energy to 450,000 homes.”