Ireland is to receive €500m from the European Investment Bank in order to upgrade our electricity grid. The funding will be used to build an interconnector between Ireland and the UK, as well as build wind farms. Ireland currently meets 95 percent of its energy needs through imported fossil fuels. However, the Government has an ambitious strategy to meet 40 percent of electricity consumption from renewable sources by 2020. Two loan contracts were signed today in Dublin by EIB Vice President Plutarchos Sakellaris and the chief executives of EirGrid Plc and Electricity Supply Board (ESB) in the presence of Irish Energy Minister Eamon Ryan. EIB will lend grid operator EirGrid €300m towards construction of a 256 km East-West Interconnector (EWIC) between Ireland and Wales. The investment is the first EIB loan for EU recovery plan energy project. Meanwhile, the ESB will receive €200m to develop its renewable energy business by installing 248MW of wind power capacity by 2012 in various locations. This represents the first EIB loan for renewable energy in Ireland. Minister for Communications, Energy and Natural Resources Eamon Ryan welcomed the EIB investment. "We are transforming energy policy in Ireland and today’s investment will propel this transformation," he said. "We are well on the road to Ireland becoming world leader in green energy and the fight against climate change.” The investment were also welcomed by both the ESB and EirGrid. ESB Chief Executive Officer Padraig McManus said: “ESB is engaged in major investment in renewable energy to realise its ambition of becoming carbon-neutral by 2035. We are expanding our wind portfolio to 600 MW by 2012. By 2020, one-third of ESB’s generation will be wind-based. Today’s announcement is part of that strategy.” Meanwhile, EirGrid Chief Executive Dermot Byrne said: “Today is a major milestone for Ireland’s electricity infrastructure and for our power market, with the signing of this very important tranche of funding for the East West Interconnector project. |
