The Government is pressing ahead with plans to build two electricity interconnectors with Wales as part of a public-private partnership.
The Minister for Communications and Natural Resources, Mr Ahern, said the interconnectors would effectively link Ireland to the UK power grid and in turn to mainland Europe. It is estimated they will cost €400 million to build.
"The interconnectors will be capable of providing 20 per cent of our electricity needs," he said.
He said a recent report by the Commission for Energy Regulation (CER) highlighted that companies did not want to finance the projects on their own, but would enter into some kind of public-private partnership model instead.
Following Government approval for the project, the CER will now seek proposals for the development of two 500 megawatt interconnectors.
Minister Ahern said the two interconnectors would be built following a competitive selection process overseen by the CER.
"The development model chosen will be similar to the public-private partnership (PPP) models, which have been used elsewhere in the economy for major projects. Construction of the interconnectors would involve private money underpinned by some regulated returns," he said.
"In any competition, I will be asking the CER to minimise the risk and the cost to Irish consumers," stated the minister. Mr Ahern said the interconnectors project would represent one of the largest engineering projects in the history of the State.
He said: "By providing a potential 1,000 megawatts of additional electricity capacity onto the Irish grid, the interconnectors will deliver tangible benefits, including enhanced security of supply, increased competition in the electricity market and integrate Ireland into the wider European energy market."
He added that interconnection could also allow for the export of electricity. "Enlarged and better integrated systems arising from interconnection can accommodate increased energy connection from renewable sources, especially wind power, and generally assist its operating economics," he said.
