Irish electricity regulator the CRU has given its backing to Element Power’s 500MW Greenlink interconnector between Ireland and Wales.
The 205km wire between County Wexford and Pembroke is in the public interest and should be supported by a new regulatory regime, the CRU has concluded after a public consultation process. UK counterpart Ofgem has already ruled the project is in the public interest.
Element said the decision paves the way for private capital financing of interconnectors.
The CRU will now hold a consultation starting in the first half of 2019 on the proposed ‘cap and floor’ regulatory regime to support the line.
Project director Simon Ludlam said the decision puts Greenlink in line to be Ireland’s next interconnector.
“The Irish Government has already published positive national policy on interconnection, recognising that projects like Greenlink will improve energy security, support decarbonisation and put downward pressure on consumer prices.
“We therefore welcome the CRU’s decision that Greenlink passes the public interest test and I am delighted that the regulators on both sides of the Irish Sea will now collaborate to help bring the project to fruition in 2023.”
Greenlink chairman Mike O’Neill added: “It is a clear vindication of our decision to develop the project and our shareholders’ ongoing support, which is rooted in fundamentals of the significant benefits that Greenlink brings as we move to a decarbonised world.
“This has enabled us to bring the project to an advanced stage of maturity, including the commencement of marine surveys and tendering for construction, which will create inward investment and jobs.”
MMT vessel MV Franklin (pictured) begun survey work on the cable route earlier this year.