The circumstances in which “private wires” will be permitted in Ireland have been approved by the Government, which also marks a big reform of the Irish electricity market by ending the monopoly of ESB Networks.
They are set out in a new policy statement brought to Cabinet on Tuesday by Minister for Energy and Climate Darragh O’Brien.
“This is a significant reform of the rules on electricity infrastructure which will unlock private sector investment in electricity infrastructure, particularly renewable generation and storage. It will also facilitate provision of low-cost charging solutions for electric vehicles and expand opportunities for self-supply of electricity,” Mr O’Brien said.
At present, only ESB Networks can own a line that brings electricity from a generator to a customer, but private investors will be able to build and own such lines in four scenarios.
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It will allow a direct connection between a generator, for example a wind farm or solar farm, and an electricity customer – perhaps a factory that wants to decarbonise. “There are situations where this is quicker and more efficient than having both parties connect to the grid,” he said.
A wind or solar farm owned by one company will be able to share a grid connection with another generator or a battery installation owned by another firm. Previously, this could have breached the rules prohibiting private lines.
Private lines will also be allowed where they are the solution to allow on street charging of EVs and to allow a firm that self-supplies electricity to provide electricity to a neighbouring customer where the line does not have to cross land owned by a third party.
The Department of Climate, Energy and the Environment will continue to monitor industry developments – “around the emerging concept of green energy parks to identify any future need for further liberalisation”, he added.
The changes will permit private operators to build and operate electricity infrastructure. This will allow IT companies to connect directly to solar and wind farms to power their data centres.
Minister O’Brien said legislation would be prepared and approved by the Government and undergo pre-legislative scrutiny by end of the year.
He expected it would be passed fully by quarter two next year and private wires to brought into operation by the Commission for the Regulation of Utilities in the second half of 2026.
Under the new regime there would be no automatic rights to go through lands owned by third parties, he said.
Mr O’Brien substantial scale-up of grid investment under the PR6 process was happening but he believed private wires were also required. The Government would be looking at how surplus energy from private wire operations may be sold into the grid.
