CRU opens consultation on large energy user connection policy
On 15 January, the Commission for Regulation of Utilities (CRU) released the consultation paper (CRU/2024001) for its Review of Large Energy Users (LEUs). The publication can be found here.
As part of the National Energy Demand Strategy that the CRU is initiating under the Climate Action Plan 2023, the CRU is undertaking a review of the processing of new large energy demand connections to the electricity and gas systems. The purpose of the consultation paper is to seek views on potential assessment criteria which the system operators could use to assess LEU applications in the context of statutory national climate targets. The outcome of the consultation process may inform any resulting CRU decision, including any new direction, that may apply to new connection applications.
The consultation seeks input on a wide range of potential solutions and contributory/supporting measures that have been identified, including:
- 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-site or off-site through CPPA for storage or alternative arrangements
The CRU has invited submissions on the consultation from industry participants, government departments, system operators and agencies to explore solutions and measures which can be adopted to achieve national and sectoral climate targets. Comments are invited from interested parties on the consultation until Tuesday 19 March 2024.
In parallel to the consultation, the CRU published a consultation on the National Energy Demand Strategy (CRU2023148) on 21 December 2023 and a consultation on Electricity Generation and System Services Connection Policy (CRU2023163) on 20 December 2023.
The CRU consultation will no doubt garner significant interest from all stakeholders as it provides a potential pathway towards the aim of enabling the twin transition of digitalisation and decarbonisation of Ireland's economy and society. Watch this space for a more detailed summary of the CRU consultations and further insights from our Energy Team as the consultations progress.
For more information please contact John Dallas, partner, Robbie Nicholas, senior associate, Joanne O'Neill, solicitor, or a member of the Energy, Infrastructure & Natural Resources team.
Date updated: 24 January 2024
Date published: 19 January 2024