The EU will invest in two
energy projects designed to reduce Irish energy dependence on the U.K., Reuters
reports.
Priority
projects
EU investment will focus on
linking the Irish electricity grid (EirGrid) to France as well as the
development of an LNG import terminal. A gas-fired power plant and gas
installations are also under consideration.
The so-called Celtic
interconnector will link Brittany in France to the southern Irish coast by
2025. The Shannon LNG terminal will allow Ireland to import up to 28,3 million
cubic meters a day, taking advantage of a glut in US natural gas supply.
The two projects will be
financed by the European Investment Bank (EIB) and are estimated to cost €2bn.
Decoupling
Ireland from the U.K
The objective shared in
Dublin and Brussels is reducing the leverage of the U.K on Irish energy
security. For the moment, the island is united under a Single Electricity
Market system binding to both Westminster and Dublin.
London is likely to try to
maximize the benefits of being outside the EU by promoting its nuclear industry
by introducing certain pricing concessions to foreign investors that would be
prohibited by EU state aid rules.
In that negotiation,
Ireland may be held hostage. If the EU was to impose energy tariffs on the UK,
it may well be the case that Irish consumers end up paying the additional cost.
In this standoff, Ireland may ask for a rebate of the cost for the Irish
consumer, but that solution would be costly.
Currently, Ireland depends on
the U.K for 60% of its energy supply. Reducing that dependency will allow the
EU a tougher stance in forthcoming Brexit negotiations. On the contrary, plans
to join the Irish and Northern Irish electricity grids are now called into
question.
https://www.neweurope.eu/article/brussels-funds-projects-ease-irish-energy-dependence-u-k/