EIB grants first loan to economic recovery energy project[fr] 

The 256-kilometre East-West Interconnector is one of the priority energy projects identified for EU support under the European economic recovery plan (EurActiv 08/07/09). 

The Ireland-UK interconnector is to receive €110 million out of the total €3.98 billion that was allocated to interconnections, offshore wind and carbon capture and storage (CCS) under the plan.

The cable connecting the Irish electricity grid with the rest of Europe will help secure Ireland's energy supply and facilitate competition, according to an EIB statement. The bank added that it will promote the development of renewable energy by enabling the import and export of excess wind power.

The interconnector, estimated to cost around €601 million in total, is due to be completed in 2012.

The EIB also signed a loan of €200 million to build wind farms in various locations in Ireland by the same date. 

These efforts will support the country's efforts to meet its 40% target of electricity from renewable by 2020. Currently, Ireland gets 95% of its energy needs from imported fossil fuels. 

"Ireland is very dependent on imported fossil fuels but has huge 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," said EIB Vice President Plutarchos Sakellaris.