Eirgrid will assess impact of €1bn power interconnector with France
Eirgrid, the State-owned company that controls Ireland's electricity network, wants to determine what economic impact a €1bn electricity interconnector planned to link Ireland and France will have on the country's gas industry.
The planned new Celtic Interconnector could cut electricity costs and consequently negatively impact gas demand.
Eirgrid has been working with France's electricity transmission operator, Reseau de Transport d'Electricite (RTE) to develop the project, which would involve the construction of a subsea 700MW interconnector.
It will allow the countries to send electricity directly to each other's networks.
The interconnector will also incorporate a fibre optic cable for transmitting data.
In June, the two companies received a €4m grant from the European Union to cover the cost of an economic assessment of the interconnector, as well as other related studies.
Eirgrid and RTE are already undertaking a cost-benefit analysis of the proposed project, which will determine its individual net benefit to France and Ireland.
It is focusing on production and capacity benefit cost savings that could be achieved.
But Eirgrid is now seeking a third party to examine the indirect impact the interconnector could have. "The primary aim of the proposed study is to examine the unique and specific indirect economic impacts associated with the Celtic Interconnector for Ireland," it said.