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Last Updated: Tuesday, 30 May 2006, 12:15 GMT 13:15 UK
New cross-border electricity link
It is not yet known where the interconnector will be located
The interconnector may help reduce electricity bills
A new electricity interconnector costing �120m is to be built between County Tyrone and County Cavan.

Northern Ireland Electricity and its counterpart in the Irish Republic, ESB, are behind the project which will be operational by 2012.

It is the latest stage in a plan by the British and Irish governments to develop an all-island energy market.

An interconnector is already in place between Tandragee and County Louth. The new one will be built further west.

It will more than double the amount of electricity carried between north and south.

BBC Northern Ireland business reporter Eddie O'Gorman said: "The idea is that having more electricity flowing between the two parts of the island will make supply more secure, and help to keep prices down. "


SEE ALSO:
Cross border gas plan under way
21 Sep 01 |  Northern Ireland
Regulator presents electricity proposals
19 Jun 02 |  Northern Ireland


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