Interconnection Policy Statement: Policy direction for east-west electricity infrastructure

The Department for the Economy has published its first dedicated Interconnection Policy Statement, providing a clear framework for how future east-west electricity interconnection projects will be assessed.

This statement is a welcome endorsement of the role that interconnection will play in helping Northern Ireland achieve its net-zero targets under the Climate Change Act (Northern Ireland) 2022. 

The policy statement is underpinned by three core principles:

• evidence-based whole-system assessment;
• cross-jurisdictional cooperation; and
• positive consumer outcomes.

In practice, this will mean that interconnector projects will need to demonstrate long-term system benefits, fair sharing of costs and benefits across participating markets, and clear value for consumers in Northern Ireland.

Importantly, the policy statement recognises that interconnection must also be assessed alongside alternative or complementary solutions such as storage, demand-side flexibility and grid reinforcement.

Northern Ireland already experiences significant levels of renewable dispatch down, with wind generators frequently constrained or curtailed when there is insufficient demand or network capacity to accommodate output. The Department expressly acknowledges that interconnection can help manage this challenge by allowing excess renewable electricity to be exported to neighbouring markets while also providing access to imported electricity during periods of lower renewable output. The accompanying CEPA analysis supports this view, finding that additional interconnection could reduce renewable dispatch down in Northern Ireland by approximately 13% by 2034, helping to unlock greater value from existing and future renewable generation projects.

The policy statement also highlights the importance of the second north-south interconnector, clearly recognising that the timing and value of future east-west interconnection projects must be considered alongside delivery of the north-south interconnector and other major network upgrades.

Overall, this new policy statement sends a positive signal for renewable energy developers and infrastructure investors. It confirms that additional interconnection is seen as an important component of Northern Ireland’s net-zero transition and a tool for reducing renewable curtailment.

For further information in relation to this topic, please contact Mark Stockdale, Partner, Ruth Forbes, Senior Associate, or any member of the Energy, Infrastructure and Natural Resources team.

Date published: 14 August 2026