CRU Opens Consultation on Large Energy User Connections Policy

The consultation will be open until Monday, 26th February 2024 and can be found here.

The Commission for Regulation of Utilities has today published a consultation on the review of Large Energy Users connection policy. This consultation forms part of the National Energy Demand Strategy, being led by the CRU, which seeks to reduce the carbon intensity of energy demand in Ireland as we continue to grow our economy.

The consultation on the review of Large Energy Users connection policy is being conducted in response to recent developments including the Government publication of the Sectoral Emissions Ceilings and the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy.

The aim of this review is to provide a new pathway for Large Energy User connections to the electricity and gas systems which minimises the impact on national carbon emissions while considering capacity of the system in relation to supply of energy and grid infrastructure.

The consultation will consider the arrangements that may be required to facilitate greater decarbonisation of large energy demand and the potential increased requirement for renewable sources of generation.

Future connection policy considerations within the consultation include the location of the facility, the ability for large energy demand customers to provide flexibility to the system and the role of different agencies and organisations in implementing any new policy.

Commenting on the consultation, Director of Decarbonisation, Dr. Phil Hemmingway said: “Ireland is a world leader in digital technologies, and the R&D and manufacturing of pharmaceuticals, biotechnology and ICT infrastructure and devices inter alia. This consultation, and the call for evidence that preceded it, is targeted at identifying the measures by which Ireland can meet its climate targets and carbon budgets, while facilitating further economic growth in these and other sectors. The CRU is calling on industry, Government Departments, Semi-state entities and Agencies to continue to engage in this process, in order to identify the means by which we can achieve these twin goals of decarbonisation and economic growth, and the policy, regulatory and other cross-agency measures that can facilitate this.”

Additional notes

• Under the Climate Action Plan 2023 (CAP23), the CRU has been assigned as the lead organisation to “Complete and Publish [an] Electricity Demand Side Strategy and Implementation Plan” (EL/23/24) by Q4 2023, with input from other key stakeholders.
• The National Energy Demand Strategy (NEDS) Project has been initiated by the CRU to provide an overarching framework within which to progress the range of deliverables required to decarbonise economic growth. As part of this, the CRU is undertaking a review of the processing of new large energy demand grid connections to the electricity and gas systems.
• This review is in response to recent developments such as the Government publication of the Sectoral Emissions Ceilings and the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy.
• On the 21 June 2023 the CRU published a call for evidence paper to start this process, with the consultation period for this closing on the 30 August. Building upon this the CRU will publish a consultation paper on Review of Large Energy Users connection policy (CRU2024001) on 12 January 2024.
• The aim of this review is to provide a pathway for new Large Energy User (LEU) connections to the electricity and gas systems which minimises the impact on national carbon emissions while taking into account capacity of the system in relation to supply of energy and grid infrastructure.
• The purpose of this consultation paper (CRU2024001) is to seek views on potential assessment criteria which the SOs could use to assess LEU applications in the context of statutory national climate targets. The outcome of this work may inform any resulting CRU decision, including any new direction, that may apply to all new connection applications from the date of its publication.
• A wide range of potential solutions, and contributory/supporting measures have been identified, including the following:
• Transition period – highlighting different levels of capability and the need for development of products and services
• Measuring performance – the need for measurement, monitoring and assurance of performance of LEU’s
• Location of LEUs – the proximity to renewable energy, availability of grid capacity, co-location of supply and demand, the concept of energy parks.
• Non-firm demand connections – the provision of non-firm or timed connection offers for electricity, or interruptible contracts for gas
• Onsite generation and storage - renewable gas onsite, or off-site (e.g. through CPPA’s for renewable gas), alternative on-site fuels.
• Demand flexibility – the ability to provide primary energy service flexibility, whether dispatch down or dispatch up, provision of flexibility on- or off-site through CPPA for storage or alternative arrangements
• In parallel to this consultation the CRU published a consultation on the National Energy Demand Strategy (CRU2023148) on 21 December 2023. The CRU published a consultation on Electricity Generation and System Services Connection Policy (CRU2023163) on 20 December 2023.