The European Investment Bank is to lend the funds to help Ireland secure its sustainable electricity supplies and support Europe's economic recovery.
Two loan contracts were signed 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, earlier this week.
EIB will lend EirGrid up to €300m towards construction of a 256km 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.
-- Advertisement --
ESB will receive up to €200m 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 €850m, almost double 2008’s total of €450m.
Minister Ryan welcomed the investment by the EIB in Ireland’s energy future.
"I congratulate both EirGrid and ESB and know they are ambitious semi-state companies who deliver on their commitments.
"I look forward to the completion of these projects. We are well on the road to Ireland becoming world leader in green energy and the fight against climate change."
EIB Vice President Plutarchos Sakellaris said Ireland has ahuge potential for wind power.
"Both these projects help Ireland in its ambition to go green and secure future energy supplies, helping Europe as a whole meet its climate change goals," he said.
EirGrid Chief Executive Dermot Byrne said the investment marked a major milestone for Ireland's electricity infrastructure and for our power market.
"When completed, the interconnector will help ensure secure electricity supplies for consumers, it will promote competition and will enable power to be efficiently transferred between Ireland and Britain, providing Irish wind producers with access to export markets," said.
(PR/BMcc)
