Cross border electricity deal

It is the first major cross border electricity deal

A £30m cross border deal has been signed to supply the Republic of Ireland with power from County Antrim.

The three year agreement will result in a small reduction in prices for electricity users in Northern Ireland.

The owners of the Ballylumford power station, Premier Power, described the deal as another step towards an all-island energy market.

Northern Ireland Electricity has signed a contract to supply over three years the Electricity Supply Board in the Irish Republic with 170 megawatts of electricity generated by the power station near Islandmagee.

It is the first major capacity export deal from Northern Ireland to the Republic.

Premier Power uses natural gas to generate electricity at the Ballylumford plant.

The contract will benefit Northern Ireland by helping to secure local employment and contribute to reducing our relatively high energy costs Ian Pearson NIO Minister

Electricity chiefs said the deal signed in Dublin on Thursday, represented a "win, win" for everyone.

"It is a demonstration of the importance of integrated electricity markets," said NIE director Harry McCracken.

"The Moyle Interconnector with Scotland is already bringing competitive electricity prices to both parts of Ireland and we are now seeing how the freeing-up of energy markets is encouraging innovative transactions between the participants."

ESB executive director of generation and supply Michael McNicholas, said the contract showed how cross-border trading in electricity could benefit customers throughout the island.

'Milestone'

"From the point of view of the Republic of Ireland electricity industry, this contract provides a good value method of meeting growing demand," he said.

Premier Power Chairman Bill Adamson said the agreement brought an all-island competitive energy market closer.

"This is an example of how Ireland's main energy players can work together in a commercial environment to deliver benefits for the economies and customers on both sides of the border."

Northern Ireland Office Enterprise Minister Ian Pearson and the Irish Communications, Marine and Natural Resources Minister Dermot Ahern both welcomed the deal.

"The contract will benefit Northern Ireland by helping to secure local employment and contribute to reducing our relatively high energy costs," said Mr Pearson.

Mr Ahern said the contract was a "milestone" on the path to an all-island energy market.

The three-year agreement between NIE, Premier Power and the ESB also offers the prospect of an extension for another three years.