Private Wires - Guiding Principles for Policy Formulation

The Department of the Environment, Climate and Communications (DECC) recently published the Private Wires Guiding Principles for Policy Formation (the Guiding Principles). The publication can be found here.

The Guiding Principles follow on from the Consultation on Private Wires, opened by DECC in August 2023 (the Consultation), which sought contributions from interested parties on 173 questions relating to ‘Private Wires’ ranging from the definition of ‘Private Wires’, the interaction between ‘Private Wires’ and the national electricity grid and the circumstances in which ‘Private Wires’ should be permitted. 128 responses were received to the Consultation, demonstrating the level of importance placed on this by energy stakeholders in the Irish market. The Consultation and the summary report on the responses to the Consultation can be found here.

The Guiding Principles sets out the objectives of the ‘Private Wire’ policy which will aim to unlock private sector resources to build new electricity infrastructure by expanding the right of private undertakings to connect supply directly with demand. The Guiding Principles also sets out various considerations which will guide policy makers in the development of ‘Private Wires’ policy. These considerations include:

• Accelerating decarbonisation, promoting the deployment of electricity infrastructure, renewable generation and storage. 
• Security of electricity supply, the offshore wind strategy, the hydrogen strategy, industrial policy, and the national climate objective.
• The national electricity grid will remain the primary way to connect generators and consumers of electricity and Private Wires will not be permitted to undermine the efficient development of the national electricity grid. Where grid-based solutions are available, these will be preferred to Private Wires.
• Private Wires will be built to the same technical and safety standards as the national electricity grid and will be capable of being taken in charge by the System Operators. 
• Private Wires will have to be developed within appropriate planning and environmental assessment requirements, and the consent of landowners. Private Wire developers will not have wayleave or other powers to use land.

Timeline for the Private Wires Policy

Next steps

The Climate Action Plan 2024 includes a commitment to develop a Private Wires Policy by the end of 2024. Once this has been published, the Government may then legislate for Private Wires.

The Guiding Principles and the ‘Private Wire’ policy will no doubt garner significant interest from all stakeholders as it provides a potential pathway for private undertakings to connect supply directly with demand outside the parameters of the national electricity grid and provides guidance to the public as to the direction of travel in respect of this key area. Watch this space for more information as the ‘Private Wire’ policy progresses.

For more information please contact Ross Moore, partner, John Dallas, partner, Robbie Nicholas, senior associate, or a member of the Energy, Infrastructure & Natural Resources team.
 
Date published: 16 July 2024