Out-Law News 4 min. read

Ireland moves to ramp up onshore renewables grid connections


Onshore renewable energy developers would have more opportunity to bid to secure the connection of their projects to Ireland’s electricity grid, under recent plans outlined by a regulator.

The Commission for Regulation of Utilities (CRU) has opened a consultation on a new electricity generation and system services connection policy (60-page / 1.05MB PDF), which contains proposals that the CRU said “should facilitate more frequent processing of [grid connection] applications” for onshore generators, storage, and other system services technology projects.

Currently, the CRU’s enduring connection policy (ECP) only provides developers behind onshore generators, storage, and other system services technology projects with a single annual window, lasting two months, in which to submit grid connection applications. In its consultation paper, however, the CRU said it is “minded-to introduce a bi-annual batch application process” to support more frequent applications.

Sitting alongside that plan is a proposal to align the grid connection application process with the planning permission process to help reduce the overall time it takes for developers to obtain the relevant permissions for their projects and to bring them online. Currently, projects which are not community-led projects must have been granted planning permission to be eligible to apply for grid connection under the ECP regime.

One revised policy option under consideration is to allow projects to apply for grid connection prior to receiving planning permission provided they have hit “other milestones”, such as having submitted a valid planning application. Another option proposed is the introduction of “an enhanced pre-engagement process” where developers could engage with system operators before submitting their full application and the system operators could undertake an initial grid assessment and issue an “acknowledgement letter” for the purpose of furthering the planning consenting process.

The proposed new policy also envisages alignment with EU rules that require permit-granting processes for onshore renewable projects to last no longer than two years.

The aims of the policy include ensuring security of supply in Ireland’s electricity market, providing certainty for future onshore electricity project development by setting out the rules for connection, and supporting delivery of Ireland’s renewable electricity targets.

The Irish government has outlined a target of delivering 80% of electricity from renewable energy sources by 2030 – including 9GW of power from onshore wind and 8GW from solar. It has further committed to delivering ‘net zero’ emissions by 2050 – and achieving a 51% reduction in emissions compared to 1990 levels by 2030, as a stepping stone towards the longer-term objective.

A further aim of the proposed new policy is to promote efficient and optimal use of existing grid infrastructure and development of future infrastructure to deliver value to the consumer – including by facilitating repowering.

Repowering is where systems or equipment used to produce renewable energy are replaced in whole or in part to replace or increase the capacity of those assets or improve their efficiency.

The CRU said its new policy will need to reflect the timeframes envisaged for the permitting of repowering projects under the EU Renewable Energy Directive (RED) III – either up to three, six or 12 months, depending on the nature of the project – and acknowledged that repowering “may be more economical and faster to deliver than developing a new project in a new location with new base costs”.

“As substantial numbers of the earliest developed renewable generation projects approach the end of their design life, repowering could be a viable option to extend operations and contribute further to clean energy targets,” it said.

The CRU is also consulting on whether it is appropriate to provide onshore renewable energy developers with more “locational signals” as to where, geographically, projects are likely to be prioritised for grid connection. Currently there is a tension between the desire of grid companies to avoid pressures building on grid infrastructure in a few select locations and the desire of developers to see prioritisation given to projects in locations where the best renewable resources are available.

“Locational prioritisation could potentially help facilitate projects which can contribute faster towards renewable targets,” the CRU said. “It is recognised that RED III timelines apply to all applications; if a system of prioritisation were to be introduced then lower priority projects in constrained areas are still required to processed within these timelines. However, there are potential benefits to the [system operators] and the grid, the consumer, and to developers if projects can locate in areas where there is available capacity, lower constraints, lower connection costs, and faster timelines for connection. It is also acknowledged that connection offers for certain locations might reflect the challenges associated with connection to those locations, such as timelines, costs, and access conditions, for example.”

The consultation paper also contains options aimed at reducing the costs of grid connection and transparency over associated fees.

Richard Murphy, an expert in renewable energy projects, said: “It is great to see some new thinking emerging, as the timing of many of our current systems and processes in the energy ecosystem are not compatible with delivering net zero.”

“We need to ensure that our electricity generation grid connection policies deliver regular rounds of connection offers which facilitate timely connecting of projects. The current permit-granting processes in Ireland do not adhere to the timelines outlined in the EU Renewable Energy Directive (RED) III and updated policies and procedures will be required to meet the requirements of this Directive,” he said.

“The batch processing under ECP has worked relatively well to date but the prospect of moving to bi-annual batches will be welcomed by the market as more frequent processing of applications, compared to the current single annual batch opening window, will better facilitate policy objectives. Another interesting development is the potential value of increased alignment of the grid process with the planning process as conducting of the two processes in parallel could help reduce timelines for the overall permit-granting process,” Murphy added.

“If we had an expanded or enhanced pre-application engagement process with the system operators to support earlier consenting of grid connection assets, that can only be a good thing. It is not currently possible to apply for planning permission for the full grid connection until a connection agreement has issued. A pre-grid application process with the system operators that firms up the grid cable route would allow more of the full grid connection to be included in a planning application before a project enters the grid connection offer process and to be ready to progress quicker by the time it accepts its grid offer,” he said.

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