The Minister for Communications, Mr Dermot Ahern, has given his backing to a second cross-border electricity interconnector which is likely to cost about €60 million.

The Minister said he wanted to see such a development take place as soon as possible, although he acknowledged regulators on both sides of the border needed to give their approval. The idea of a second cross-border interconnector was first mentioned in the Belfast Agreement.

Since then discussions have been been taking between Mr Ahern and his counterpart in the Northern Ireland office, Mr Barry Gardiner MP, the Minister for Enterprise, Trade and Investment.

There is already an electricity interconnector with Northern Ireland near Carrickmacross, Co Monaghan, but Mr Ahern is believed to favour building a second one. A few months ago the Government also announced plans to build an interconnector with Wales.

Mr Ahern's spokesman said the Minister was firmly behind the idea, mainly because it represented a significant stepping stone towards creating an all-Ireland electricity market.

At present the Irish electricity market is believed to be no bigger than that of greater Manchester. The idea is believed to have received a positive response in recent months from officials in Northern Ireland.

Mr Ahern and Mr Gardiner yesterday published a draft all-island energy framework outlining how an all-island energy market might be created over the next three years.

Minister Ahern said the document 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," he said.

"In the past, the principal focus for co-operation has been on developing our shared infrastructure. In this key new phase, while we continue to press ahead with infrastructural developments, we are also moving specifically to harmonise policies and practices in energy markets," he explained.