Paris: French energy regulator CRE and its Irish counterpart CRU said on Monday they are backing a bid by the Celtic Interconnector undersea power cable project to get at least 60 percent of its 930 million euros investment from European Union grants.

The 700 megawatts high-voltage power cable project, led by French power grid operator RTE and Ireland's EirGrid, will be the first interconnector linking Ireland to France.

The regulators said that in the context of Britain's exit from the European Union, the project will establish a direct power link between Ireland and the European internal energy market. It would also improve Ireland's security of supply.

The Celtic Interconnector, set to run from the southern Irish coast to Brittany in France from 2026, was declared a common interest project by the European Union's executive arm, making it eligible for grants from the bloc.

The regulators said they have agreed that 65 percent of the project's estimated investment costs will be allocated to Ireland and 35 percent to France.