The interconnector would have the capacity to carry 500 megawatts of electricity. According to the company, the capacity is enough to power 300,000 homes. The link, which is to be named as the East-West Interconnector, will be 260km long.
The project will require an investment of EURO600m. Construction of the project will begin in 2010, with creation of 100 jobs during the construction phase. The work is expected to be finished in 2012.
Swedish company ABB was selected by EirGrid to carry out the work. The firm manufactures cables, switches and many other equipment needed by electricity transmission systems.
The new link will allow electricity to flow both ways, transmitting power between Wales and Ireland. In addition, the new electricity link will also enable Ireland to export the renewable energy it has been generating.