Brussels, 02/10/2009 (Agence Europe) - The European Investment Bank (EIB) is to lend up to €500m to help Ireland secure its electricity supplies while making them “greener”, and support Europe's economic recovery. Two loan contracts to that effect were signed today in Dublin by the EIB and the chief executives of EirGrid Plc and Electricity Supply Board (ESB).
EIB will lend EirGrid up to €300m towards construction of a 256 km cable between Ireland and Wales. The East-West Interconnector (EWIC) will underpin the development of renewable energy by enabling the import and export of excess wind power. It will improve security of supply and facilitate competition through connecting the Irish electricity market with the rest of Europe. ESB will receive up to €200m in loans to develop its renewable energy business by installing 248MW of wind power capacity by 2012 in various locations. The total cost of the investment programme is estimated at €475m. The loans bring total EIB support for Ireland in 2009 to €760m, almost double 2008's total of €450m.
The European Economic Recovery Plan, approved by the European Parliament and EU ministers in July, proposes spending €4 billion in 2009 and 2010 on key energy projects to help counter the effects of the financial crisis on the real economy. It allocates €110m for the Ireland-UK interconnector.
The total cost of EirGrid's project is estimated at €601m. Engineering group ABB has been awarded the contract to design, manufacture and install the interconnector. EirGrid expects the project will result in approximately 100 jobs in Ireland and 100 jobs in Wales during the construction phase. The project is due for completion in 2012.
Ireland currently meets 95 percent of its energy needs through imported fossil fuels. The Irish authorities have adopted an ambitious strategy to meet 40 percent of electricity consumption from renewable sources by 2020. (O.L./transl.jl)