The Irish government has approved the building of a 500 megawatt electricity line to Britain in a bid to boost security of supply and the development of renewable sources, the energy regulator said on Sunday.

To be built at a cost of up to €600 million by Swedish-Swiss engineering company ABB, the line will be a backup source at times of shortage in Ireland, the Commission for Energy Regulation said.

It will also allow it to sell any surplus from new renewable energy sources, mainly wind, it said.

"The interconnector will assist in achieving Ireland's 40 percent renewable generation target," the commission said in a statement.

The European Commission will pay up to €110 million euros of the cost of the East-West Interconnector, which will link Ireland to Wales, also increasing competition in the Irish market, the regulator said.

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