New Electricity Storage Policy Framework for Ireland and the Private Wires Guiding Principles for Policy Formation
Wednesday, 17 July 2024
The Minister for the Environment, Climate and Communications, Eamon Ryan, received approval from the Government on 5 July 2024 for two memos, both of which can expedite the delivery of and ensure that Ireland gets the optimum benefit from our renewable energy potential.
The two memos set out the Government’s prospective plans for (1) a framework to accelerate the incorporation of electricity storage systems (ESS) to the grid network, which will allow for renewable energy to be stored or “banked” when the resources are plentiful and then used when required; and (2) Private Wires, referring to private individuals or undertakings running their own electricity cables in order to transfer electricity.
The first memo regarding the Electricity Storage Policy Framework sets out the actions to be taken in maximising the incorporation of available renewable electricity across the grid system, underpinning the role that ESS is expected to play in meeting the CAP targets and beyond, as well as its role in the electricity transition for Ireland.
The second memo relates to the Private Wires Guiding Principles for Policy Formulation. This policy could potentially provide Ireland with an off-grid solution for the generation and supply of electricity in Ireland, allowing for private individuals, community energy groups, etc. other than ESB to own electricity infrastructure, and run their own electricity cables in order to transfer electricity. Currently, the transfer of electricity from external generation takes place on the state owned national electricity grid, with Eirgrid operating the transmission system and ESB Networks operating the distribution system. The vast majority of Ireland’s energy demands will remain being supplied through the national grid, and thus, Private Wires will work in support of the ongoing development of the grid, while adhering to national policies, the Commission for Regulation of Utilities (“CRU”) and the grid systems operators.
These two memos have been highly anticipated as they are seen as stepping stones on Ireland’s path to net zero carbon emissions and in securing Ireland’s future energy supply by transitioning to an electricity-led system. Minister Ryan affirmed that “getting more renewables onto the system is key if we are to meet our climate goals. Delivering an electricity storage policy framework and a Private Wires framework is essential to unlock private sector resources to build new electricity infrastructure.” The Policy framework, as well as the Guiding Principles have emerged in the context of the Climate Action Plan (“CAP”) 23 and the Governments push to achieve Ireland’s renewable energy targets. Both playing an important role in facilitating certain CAP and Sectoral Emissions targets.
However, the policy framework identifies a number of concerns and challenges, which the Government are committing to addressing, such as their responsibility in acknowledging and responding to on-going work programmes to facilitate market access and potential remuneration / funding gaps for future storage units on the grid. There are also challenges regarding the operation of the electricity grid, in respect to dispatchable and non-dispatchable generation. This is referring to the conventional thermal generation, such as gas turbines, that is predictable, reliable and controllable in order to meet demand. While variable renewable electricity sources such as solar energy need an increased amount of specialist services to ensure grid stability, i.e. System services.
The Guiding Principles document identifies a list of policy considerations which will guide any expansion of the right of private developers to build private wires. In short, these policy considerations state that the publically owned National Electrical Grid is a crucial piece of national infrastructure, and changes to it or the construction of Private Wires must align with policies on supply security, wind and hydrogen strategies, as well as climate goals. Additionally, it is established that Grid-based solutions take precedence over Private Wire, which must not affect Grid financing or development. Furthermore, Private Wires must meet technical standards and comply with planning and environmental assessment requirements, as well as the consent of landowners.
Details of the Government policies are available at:
For further information on the Energy Storage or the Private Wire Policies Framework, 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.
