Minister O’Brien secures Government approval for new ‘Private Wires’ policy – to unlock private sector investment in electricity infrastructure

New policy marks a significant reform of the rules on electricity infrastructure
 
Minister O’Brien has today (Tuesday, 15 July) secured Government approval for a new policy on ‘Private Wires’. 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 the provision of low-cost charging solutions for Electric Vehicles and expand opportunities for self-supply of electricity.
 
At present only ESB Networks can own a line that brings electricity from a generator to an electricity customer. Following an extensive consultation exercise with industry stakeholders the government has decided that in future private investors will be able to build and own such line in the following circumstances:
 

• 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;
• A wind farm 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 be allowed where they are the solution to allow on street charging of Electric Vehicles; and
• To allow a firm that self-supplies electricity to provide electricity to neighbouring customer where the line does not have to cross land owned by a third party.

 
Minister O’Brien said:
 
“This is a very significant reform of the rules on electricity infrastructure. I, and officials in the Department, are now focused on the next steps – to implement this policy. Primary legislation – to amend the Electricity Regulation Act allowing for Private Wires – will be enacted. I will bring the General Scheme of this legislation to Government in the autumn. Supporting regulations – to define standards and processes for granting permission for Private Wires – will be adopted. I will ensure that the Commission for Regulation of Utilities [CRU] is resourced – to take on this significant new area of regulation.
 
“My 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.”
 
This reform follows on from a consultation process on Private Wires. A total of 128 responses were received form a wide range of individuals and groups. In July 2024, the Department published a summary report of the results of the consultation exercise.
 
In parallel with the publication of the consultation results in July 2024, Government approved a set of guiding principles for the development of the final Private Wires Policy. The statement on guiding principles set out that the new Private Wires Policy 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.