CRU Decision Paper on Electricity Connection Policy

The Commission for Regulation of Utilities (CRU) has published a decision paper on 26 September 2024 on the Electricity Connection Policy – Generation and System Services (ECP-GSS) (CRU/202401). Fergal Ruane and Christopher Woods of our Infrastructure, Construction and Energy Department have outlined the key aspects of the new policy. 

New Energy Connection Policy | CRU.ie

The policy is designed to support Ireland’s energy transformation and will apply to onshore renewable energy generations, energy storage and system services technology. The policy has also developed in the context of the Government’s Climate Action Plan 2024 (CAP 24) which sets a target of 80% of electricity being generated by renewables by 2030. 

The policy has the following aims: 

• to ensure security of supply of electricity and quality of service;

• supporting delivery of Ireland’s renewable electricity targets, providing certainty for future onshore electricity project development;

• to ensure swift, effective decision making in administrative processes including ensuring Article 16 of the Renewable Energy Directive (RED III) is implemented to align relevant grid permitting timelines with the requirements specified in the Directive;

• promoting efficient use of existing and future infrastructure; and

• facilitating small scale generation and renewable energy communities. 

Key Changes:

Introduction of bi-annual application processing

One of the most significant changes for renewable energy developers and stakeholders will be the move to bi-annual application processing. Previously connection applications had to be submitted within a short window which opened once a year for approximately one month. This meant that projects which hadn’t reached a certain stage were unable to apply and had to wait another 12 months before making their application. The new policy introduces bi-annual processing with deadlines at the end of each March and September. This should mean quicker processing of applications and more predictable timelines for developers. Initially there will be no cap on the number of applications per batch. However, the CRU may introduce such limits if the volume of applications impacts on the ability to process applications efficiently. 

Reduced timelines and alignment with the RED III

The policy ensures Article 16 of the RED III is implemented to align relevant grid permitting timelines with the requirements specified in the Directive. Under the RED III the permit-granting process for new renewable energy projects is capped at two years, with a shorter 12-month period for repowering and co-located energy storage.  

Pre-engagement process and changes to planning requirements for projects covered under the RED III

Under the new policy, there will be High-Level Technical Assessment (HLTA) carried out in collaboration with system operations (the ESB and Eirgrid) before developers submit a grid application. The non-binding HLTA, once issued, is then included as part of the grid application. 

Under the new policy, developers will not require full planning permission to have been granted before submitting a grid application. Instead applicants for projects covered by the RED III (renewable projects and co-located energy storage projects) only need planning permission applications to be acknowledged as complete by the relevant local authority before submitting an application to the system operator. This will allow renewable energy developers to progress planning and grid permit applications in parallel. 

Opportunities for connection to the network for smaller-scale and non-exporting projects 

There are changes to the requirements for smaller case projects with a removal of upper and lower Maximum Export Capacity (MEC), a reduction in first stage payments and exemptions from capacity bonds for certain projects and a more streamlined application process. 

Additional network information 

Eirgrid will conduct bi-annual firm access allocation runs under the new policy, these will assess network capacity and constraints. Additional network information may also be provided to developers to assist in their decision making for future energy projects. These measures will undoubtedly assist developers in deciding on where to locate energy projects. 

Conclusion 

Overall the policy demonstrates Ireland’s commitment to renewable energy and achieving renewable energy and climate targets. The policy contains notable improvements for energy developers which should encourage development and help to make renewable energy infrastructure in Ireland a more attractive investment opportunity. 

For further information on the new Connection Policy, or general legal advice on energy regulation and projects, please contact Fergal Ruane or any other member of the ByrneWallace LLP Infrastructure, Construction and Energy Department.