A "milestone" on the road to an all-island energy market was reached yesterday as the ESB signed a €30 million deal to purchase electricity from Northern Ireland, the Minister for Communications, Marine and Natural Resources, Mr Ahern, said.
In the first agreement of its kind, the ESB will boost its capacity through the purchase of 170 megawatts annually from Ballylumford generating station near Larne, Co Antrim.
With demand for electricity in the Republic predicted to grow by 3.5 per cent yearly until 2009, closer links between the ESB and Northern Ireland Electricity are crucial, said Mr Ahern.
He added: "This contract is a milestone on the road to an all-island energy market. Consumers on both sides of the border will benefit by being part of a larger market as it will drive competition and keep downward pressure on prices."
Mr Michael McNicholas, ESB executive director, in charge of generation and supply said the deal, initially to run for three years, represented good value.
He said: "This contract shows how cross-border trading in electricity can benefit customers throughout the island. From the point of view of the Republic's electricity industry, this contract provides a good value method of meeting growing demand. The extra capacity will benefit all customers in the Republic."
Mr Harry McCracken, director of Northern Ireland Electricity, said the agreement was a "win-win deal for everyone" and showed the importance of integrated electricity markets.
He said: "The Moyle Interconnector with Scotland is already bringing competitive electricity prices to both parts of Ireland and we are now seeing how the freeing-up of energy markets is encouraging innovative transactions between the participants."
The Ballylumford station is run by Premier Power, part of the British Gas group.
The company's chairman Mr Bill Adamson said: " \ agreement bring us one step closer to an all-island competitive energy market, which is an effective mechanism for operating efficiently in the Irish marketplace. The agreement will assist in matching the fast-growing demand for power in the Republic."
