AFFORDABILITY

Underground Cable costs 2-3 times more economical than overhead lines and pylons

EirGrid is misleading the public on statements to the media regarding cost comparisons of underground cable and overhead lines

EirGrid currently quoting from various reports that underground cables construction costs will be 3.5 times that of overhead transmission lines and pylons

But EirGrid possess the actual costs of both technologies:Many overhead line projects already completedMajor underground and undersea project recently completed

East-West interconnector HVDC cable

Construction costs for both are very similar, based on EirGrid figures:Average Overhead line construction costs published by EirGrid for Grid Link, Grid West and the North-South interconnector = €2.1Million per kilometre

Average underground and undersea cable cost for the East-West interconnector is €2.2 Million per kilometre

EirGrid refuses to factor in devaluation costs, delay costs, tourism and landscape costs and health related costs and concerns

NEPPC has carried out a detailed analysis of property and land devaluationCombined devaluation costs for North-South interconnector = €310 Million

EirGrid agree delay costs of €30M per year, currently running at 7 year delay = €210 Million

Total overhead line costs = €798 Million= 3 times higher than underground cable costs

SUMMARY - KEY FACTS

Underground makes sense

Briefing Doc. 101

Affordability – Main Components

Affordability – Cost Inputs

Construction Costs

Operational Costs

Property Devaluation

Farm devaluation

Delays

Tourism/Other

Construction costs are the main focus of most reports.

Operational costs are sometimes examined.

But impact costs, such as farm and property devaluation and project

delays also carry real costs to affected parties.

Transmission Costs PerspectiveElectricity Bill Breakdown

PSO levy imposed is 5% of billTransmission costs represent only 6% of bill

Eirgrid Statements & Claims on Underground Construction Cost Ratios

25

97

3 1.50

5

10

15

20

25

30

2007 2009 2010 2012 2015

2007: Undergrounding is 25X more than Overhead Lines2012: Undergrounding is 3X more than Overhead Lines2015: Undergrounding is 1.5X more than Overhead LinesWhich way is this going?

PROJECT LENGTH KM

CONSTRUCTION COST €M

CONSTRUCTION COST €M per KM

North-South 140 286 2.1

Grid Link 250 500 2.0

Grid West 100 240 2.4

Average 2.1

PROJECT LENGTH KM

CONSTRUCTION COST €M

CONSTRUCTION COST €M per KM

East-West 256 570 2.2

Average 2.2

EirGrid Published Project Costs

Overhead Lines

Underground Cables

Property & Land Devaluation

Major studies carried out over the last fifty years all around the world

Power lines have a statistically significant negative impact on property values.

Properties negatively affected for up to 2.5 km away

Value of detached properties at a distance of less than 100m from overhead transmission lines was 38 percent lower than comparable properties (UK Study, 2007)

Non-residential holdings Per acre values from more than 1,000 agricultural property

sales were 16-29 percent lower for properties with easements for transmission lines than for similar properties without easements

North-South Interconnector: Detailed corridor Devaluation Study performed by NEPPC

Overhead Line Costs: N-S InterconnectorEirGrid published construction costs

Sources:Construction & Delay costs – EirGridProperty & Land devaluation – NEPPCTourism & Health costs – not includedEirGrid estimated landowner compensation: €9Million

? ?

256 Km long

34 km undergrounded along roadside from Rush in Dublin to Woodland in Meath

Underground N-S InterconnectorSame Technology as E-W Interconnector:

Construction Costs

East-West Interconnector256 km length

€570M cost

= €2.22M per kilometre

North-South Interconnector140 km length

@ €2.22M per kilometre

= €310M cost*

*Overestimate, as 70% of E-W line is subsea cable (extra lead sheathing)

Underground Cable Costs: N-S InterconnectorEirGrid E-W Interconnector Reference

310

46 - - -

-

264

0

100

200

300

400

500

600

700

800

Construction Subsea Element Property Land Delays Tourism Health Full Costs

€M

0 00 0 0

Underground cable vs. Overhead lines full costsN-S Interconnector

* Does not include tourism or health impacts

798 *

Data Sources:Construction & delay figures: EirGridDevaluation figures: NEPPC