The Commission for Regulation of Utilities (the CRU) has published a consultation paper (the Consultation Paper) focusing on the sharing of maximum export capacity (MEC) behind a single connection point. The Consultation Paper can be found here.
The CRU seeks input from stakeholders on a proposal to share MEC by multiple forms of technology or generators behind a single connection point, at an onshore co-located hybrid project, without necessitating an increase of MEC.
The proposal set out in the Consultation Paper aims to address one of the key barriers to the full implementation of hybrid projects in Ireland. That is the inability to dynamically share a contracted MEC between different technology types with a single connection point. The CRU aims, in turn, to increase the availability of electricity by facilitating a higher energy export at a connection point. This would facilitate more efficient use of grid infrastructure by allowing different technology types behind a single connection point to share a single MEC.
There are a number of key features of the Consultation Paper:
- Proposal for sharing of MEC behind a connection point: the proposal seeks to facilitate a single MEC to be dynamically shared between different generation unit types. For example, a windfarm with a 50-megawatt (MW) MEC could be co-located with a 50MW MEC solar plant without having to increase the total MEC to 100MW or sub-dividing the MEC between the existing MEC between the two technology types. The site would not be allowed to exceed a total power export of 50MW at any one time. The proposal, if adopted, would therefore facilitate the co-location of different types of renewable generation and/or storage.
- Possible impacts of the proposal and changes required: the Consultation Paper identifies a number of areas that will require review before a policy on MEC sharing is implemented. These include:
- Financial securities: new processes for setting and administering the connection charges bond and the capacity charges bond may be required.
- Connection agreements: amendments will be needed to connection agreements to allow for the sharing of MEC between individual units within a hybrid project while maintaining the necessary safeguards for the system.
- Network planning: hybrid sites and technologies which combine multiple forms of technology would have different technical and dispatch profiles in comparison to single technology generation units.
- Energy and capacity markets: the current market systems will need to be assessed to facilitate the sharing of MEC.
- System services: each technology type will be registered as a separate service provider as is the case currently. Service providers would be required to manage the declared availability for services across hybrid technologies, such that the sum of the availability behind the single connection would not exceed the single shared MEC.
- Tariffs, levies and charges: while it is not envisaged that there will be a significant impact on tariff arrangements, these will need to be reviewed, along with any associated impact on the retail market.
- System operations: certain system operations business processes (e.g. Meter Arrangements, Central Dispatch Arrangements Options) may require updates or change to facilitate the sharing of MEC. Real time data will be needed to assess the full extent of such updates or changes.
The CRU proposes that an implementation roadmap will be included in the CRU decision paper which will detail a comprehensive set of required actions and timelines.
The CRU has called for feedback on the Consultation Paper from stakeholders by 5.30pm on Monday 14 April 2025.
There is no doubt that the Consultation Paper will attract significant interest from stakeholders across the Irish energy sector.
For more information please contact John Dallas, partner, Robbie Nicholas, senior associate, Joanne O'Neill, solicitor, Louise Sharkey, knowledge lawyer, or a member of the Energy, Infrastructure & Natural Resources team.
Date published: 5 March 2025
