Celtic Interconnector Delayed Until 2028: What It Means for Ireland’s Energy Future

The Celtic Interconnector, a landmark energy project designed to link Ireland’s electricity grid with France, has been delayed until the fourth quarter of 2028, raising concerns about energy security, rising costs, and the country’s transition to renewable power. Originally slated for completion in 2026, the €1 billion undersea cable—co-funded by Ireland’s EirGrid and France’s Réseau de Transport d’Électricité (RTE)—faces setbacks due to manufacturing and installation challenges, leaving households and businesses vulnerable to volatile energy prices.

Why the Delay Matters

The Celtic Interconnector is more than just a cable—it’s a critical piece of infrastructure with implications for Ireland’s energy independence, climate goals, and economic stability. Here’s why the two-year delay is significant:

1. Energy Security at Risk

Ireland currently relies on imported gas for 40–43% of its electricity generation, with 80% of that gas arriving via twin pipelines from Scotland. The International Energy Agency (IEA) has warned that reduced gas supplies could persist for another two years, exacerbating price volatility. The interconnector was intended to diversify Ireland’s energy sources by providing direct access to France’s nuclear and renewable power, but the delay leaves the country more exposed to global energy shocks.

“This is bad news for electricity consumers. The delays are largely due to cable manufacturing and installation issues, which are largely beyond EirGrid’s control.”

—Barry Hayes, Associate Professor in Electrical Power Systems at University College Cork

2. Missed Climate Targets

The project was hailed as a cornerstone of Ireland’s Climate Action Plan, designed to facilitate the integration of renewable energy—particularly wind power—into the European grid. With Ireland aiming for 80% renewable electricity by 2030, the interconnector’s delay could sluggish progress. The cable’s 700 MW capacity was expected to power 450,000 homes, offsetting reliance on fossil fuels.

3. Economic Fallout

Rising electricity prices have already strained Irish households, with the Central Statistics Office (CSO) reporting a 22% increase in energy costs for consumers in 2025. The interconnector was projected to reduce prices by increasing competition and access to cheaper continental energy. Without it, Ireland remains tied to the UK’s energy market, where prices are influenced by global gas trends.

The Root Causes of the Delay

EirGrid and RTE have cited supply chain disruptions and technical challenges as the primary reasons for the delay. Key issues include:

• Cable Manufacturing Bottlenecks: The 500km undersea high-voltage direct current (HVDC) cable requires specialized production, which has faced delays due to global demand for similar projects.
• Installation Complexities: Laying cable across the Celtic Sea involves navigating harsh weather conditions, deep waters, and environmental regulations—factors that can push back timelines.
• Permitting and Regulatory Hurdles: While the project is designated as a Project of Common Interest (PCI) by the EU, securing permits in both Ireland and France has taken longer than anticipated.

What Happens Next?

Despite the setback, EirGrid and RTE remain committed to the project, which has secured €530.7 million in EU funding from the Connecting Europe Facility (CEF). Here’s what to expect in the coming months:

Short-Term: Mitigating the Impact

• Diversifying Gas Supplies: Ireland may explore additional LNG (liquefied natural gas) terminals or pipeline expansions to reduce reliance on UK imports.
• Accelerating Renewables: The government could fast-track wind and solar projects to compensate for the interconnector’s delay, though grid constraints remain a challenge.
• Price Stabilization Measures: Subsidies or tax relief for energy-intensive industries may be introduced to cushion the blow of higher electricity costs.

Long-Term: A Strategic Pivot

The delay underscores the need for Ireland to rethink its energy strategy. Key considerations include:

• Grid Modernization: Upgrading Ireland’s aging grid to handle more renewable energy without relying solely on interconnectors.
• Battery Storage: Investing in large-scale battery projects to store excess wind energy and release it during peak demand.
• Regional Cooperation: Strengthening ties with other EU countries to explore alternative interconnection routes, such as a potential link to Spain or Portugal.

Key Takeaways

• The Celtic Interconnector, a 700 MW undersea cable between Ireland and France, has been delayed until Q4 2028 due to manufacturing and installation challenges.
• The project was expected to power 450,000 homes and reduce Ireland’s reliance on imported gas, which currently fuels 40–43% of electricity generation.
• The delay exacerbates energy security concerns, as Ireland remains dependent on UK gas pipelines and vulnerable to global price fluctuations.
• EirGrid and RTE have secured €530.7 million in EU funding for the project, which is critical for Ireland’s 2030 renewable energy targets.
• Short-term solutions may include diversifying gas supplies, accelerating renewable projects, and implementing price stabilization measures.

FAQs

What is the Celtic Interconnector?

The Celtic Interconnector is a 575km high-voltage direct current (HVDC) cable that will link Ireland’s electricity grid to France’s, allowing for the exchange of up to 700 MW of power. It is the first direct connection between Ireland and continental Europe.

Why is the project important for Ireland?

The interconnector is designed to:

• Enhance energy security by reducing reliance on imported gas.
• Lower electricity prices by increasing competition and access to cheaper continental energy.
• Support Ireland’s climate goals by facilitating the integration of renewable energy into the European grid.

Who is funding the project?

The project is co-funded by EirGrid (Ireland) and RTE (France), with €530.7 million in grants from the European Union’s Connecting Europe Facility (CEF). The total estimated cost is €1 billion.

What are the main challenges causing the delay?

The primary challenges include:

• Delays in manufacturing the specialized undersea cable.
• Technical difficulties in installing the cable across the Celtic Sea.
• Regulatory and permitting hurdles in both Ireland and France.

How will the delay affect electricity prices?

The delay is expected to keep electricity prices higher than they would be with the interconnector in place. Ireland’s reliance on imported gas—prices of which have risen due to global supply constraints—means consumers may face continued volatility. The CSO reported a 22% increase in energy costs for households in 2025.

What alternatives are being considered?

In the short term, Ireland may:

• Expand LNG import capacity.
• Accelerate renewable energy projects, such as offshore wind farms.
• Introduce subsidies or tax relief for energy-intensive industries.

Long-term, the focus may shift to grid modernization, battery storage, and exploring alternative interconnection routes.

The Bottom Line

The Celtic Interconnector’s delay is a setback for Ireland’s energy transition, but it also presents an opportunity to rethink the country’s approach to energy security and sustainability. While the project’s completion in 2028 is now uncertain—given its weather-dependent timeline—Ireland must act swiftly to mitigate the economic and environmental consequences of the delay. For now, households and businesses will need to brace for continued price volatility, while policymakers scramble to find alternative solutions to keep the lights on and the climate goals within reach.

As EirGrid’s director general put it in 2022, the interconnector is “arguably the most important Irish infrastructure project for this decade.” The question now is whether Ireland can afford to wait.