A positive outlook for power generation is forecast over the next decade on the island of Ireland in a new report published by the operators of the electricity grid in Ireland and Northern Ireland.

However, network limitations are restricting the amount of generation on the island that can be effectively utilised in Northern Ireland, leading to tight supply margins, according to the report from EirGrid and System Operator for Northern Ireland (SONI).

EirGrid and SONI have published the All-Island Generation Capacity Statement 2013- 2022, which reports on the likely balance of supply and demand for electricity over the next ten years.

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The report forecasts that there will be a considerable electricity generation surplus on the island in the next decade, providing assurance to businesses and consumers.

However, the gap between power supply and demand in Northern Ireland will be tight in the second part of the ten year period, according to the statement.

The option of transferring power from Ireland to alleviate potential shortfalls in Northern Ireland is limited due to the fact that there is only one major power line linking the two networks.

Fintan Slye, chief executive of EirGrid Group, said: "The project to build a second North-South tie line is needed to ensure that both jurisdictions have a generation supply sufficient to meet demand reliably."

(CD/GK)