Home Knowledge Renewable Energy Projects Boosted by CRU’s New Grid Connection Policy

Renewable Energy Projects Boosted by CRU's New Grid Connection Policy

The Electricity Connection Policy for Generation and System Services (ECP-GSS), which applies to onshore renewable energy generation, energy storage and system services technology, is designed to support Ireland’s energy transition and the Government’s Climate Action Plan 2024 (CAP 24) target to generate 80% of Irish electricity from renewable sources by 2030.

Background

In Ireland, scarce grid connection capacity is apportioned to users through bilateral grid connection agreements between generators or demand users on the one hand and EirGrid (as Transmission System Operator or ‘TSO‘), or ESB Networks (as Distribution System Operator or ‘DSO‘) on the other.

RED III

The European Union’s (EU) revised Renewable Energy Directive (RED III), adopted by European Parliament in September 2023, raised the targeted collective renewable energy consumption in Europe from 30% by 2030 to 42.5% by 2030. To facilitate this, alongside issuing sectoral specific directions for transport, industry and building, the EU outlined that Member States must implement fast track procedures to accelerate permitting for renewable energy projects. The EU has also classified such projects as being of ‘overriding public interest’ in order to limit potential objections to their development.

The new ECP-GSS makes a number of key changes to Ireland’s existing grid connection policy for generators that look set to accelerate grid connection for renewable projects.

Bi-Annual Application Process

The ECP-GSS has introduced a bi-annual batch application process for submitting grid connection applications. The first batch closing deadline under ECP-GSS is set for 30 September 2025, following which the bi-annual deadlines will be on 31 March and 30 September each year.

Previously, the CRU’s Enduring Connection Policy (ECP) restricted project developers to a single two month window for submitting grid connection applications each year.

Caps on the number of projects to be processed within each batch which existed under previous ECP application processes have been removed for renewable projects applying under ECP-GSS.

Reduced Planning Permission Requirements for RED III Projects

The new policy will allow so-called ‘RED III Projects’, that is renewable and co-located energy storage projects covered by Article 16 of RED III, to apply for a grid connection once a complete planning application has been acknowledged by the relevant planning authority.

This is to facilitate developers in reducing the turnaround time necessary to bring their projects online in accordance with the mandate of Article 16 that the permit-granting procedures for new renewable energy projects located outside renewables acceleration areas shall not exceed two years.

Before submitting its grid connection application, a RED III Project must now enter into a ‘pre-engagement process’ with the relevant system operator (SO) in which the SO undertakes a ‘high-level technical assessment’ of the project. Grid connection applications may then be submitted prior to the planning permission being granted once the relevant project’s planning application has been acknowledged as complete by the relevant planning authority. However, it is important to note that projects must have received planning permission consents before the grid connection offer can be accepted.

Non-RED III Projects must still obtain planning permission before submitting an application for connection.

Storage

Co-located projects, i.e. those comprising an energy storage facility combined with a facility producing renewable energy and connected to the same grid access point, will be considered as RED III Projects for the purpose of grid connection applications.

Energy storage projects which are not co-located must follow the process for non-RED III projects.

Repowering

ECP-GSS also aims to optimise the use of existing grid infrastructure by promoting the replacement, in whole or in part, of existing equipment and systems used to produce renewable energy in order to increase the capacity of such assets.

As per RED III, the overall timeline to grant grid connection permits to such repowering projects should be under one year. For repowering projects that don’t increase their maximum export capacity (MEC), and those with less than a 15% increase in MEC that do not give rise to any system safety concerns, the timeline for permits should be within three months. These timelines improve connection opportunities for smaller scale and non-exporting projects.

The CRU has confirmed that these timelines apply to both refurbishment and life extension projects as well as full repowering projects.

With Wind Energy Ireland (WEI) reporting in its Repowering Ireland 2024 research that 854 MW of the 4,347 MW of wind farms connected to the grid in Q3 2023 will have to be decommissioned by 2030 and 2,488 MW by 2040 unless they are repowered or extended, such projects are critical to the attainment of Ireland’s renewable energy targets.

Next Steps

The CRU has directed the SOs to undertake a number of actions in preparation for the implementation of ECP-GSS later this year. The timely implementation of the policy has gained prominence in light of the European Commission’s opening of infringement procedures against Ireland and 25 other member states for failing to fully transpose Article 16 by 1 July 2024.

ECP-GSS is available to view in full here.

Contributed by Matthew Smith and Colm Booth.