Under Ireland’s carbon budget programme, the electricity sector must deliver an emissions reduction of 75% by 2030. That is the steepest decline that has been set for any sector of the economy. This comes against a backdrop of growing electricity demand, with demand forecast to grow by 50% by 2030.
Separately, Ireland’s Climate Action Plan 23 (CAP 23) has set equally challenging climate action targets for the electricity sector. This includes a target for 80% of electricity demand to be met from renewable sources by 2030.
The Irish Government has acknowledged that transformational policies, measures and actions will be required to meet the electricity sector’s climate action targets and to stay within carbon budgets. Developing and expanding Ireland’s national grid will not be enough, and the Government recognises that it must try to enable off-grid solutions. This includes the development of a policy on Private Wires.
What are Private Wires?
Private Wires can be classified as either a ‘Private Line’ or a ‘Private Network’.
A ‘Private Line’ is a privately owned electricity line, and associated infrastructure, used to supply electricity that links a single generation site with a single demand user.
A ‘Private Network’ is a privately owned electricity system consisting of associated cables and infrastructure, used to transport and supply electricity. The system links a single generation site with multiple demand users, or multiple generation sites with a single demand user or multiple demand users.
In most cases, Private Wires will involve crossing land that the cable owner and/or operator does not own, whether this is privately or publicly owned land.
Private Wires are not currently permitted in Ireland.
Consultation paper on Private Wires
The development of a policy on Private Wires is one of the goals of CAP 23. As a first step towards a final policy, the Department of the Environment, Climate and Communications (DECC) published a public consultation paper on Private Wires on 18 August 2023.
In the consultation paper, DECC acknowledges that Private Wires would represent a major shift in electricity policy in Ireland. It recognises that depending on the final policy, Private Wires could affect all Irish citizens while also overhauling aspects of the electricity sector that have been in place since soon after the foundation of the State.
The aim of the consultation is to gather the views of the public, stakeholders and interested parties. This will consolidate DECC’s understanding of the role that Private Wires may play in the future Irish electricity ecosystem. It will also help to identify the challenges and opportunities such a policy change may present.
There are 173 separate questions throughout the consultation paper on topics including:
- Contestable Connections and Direct Lines
- Private Lines for the production of Green Hydrogen
- Private Lines for Demand and Generation
- Private Networks for Renewable Energy Business Parks
- Private Networks for Demand and Generation located in different places
- Electric Vehicle Charging Infrastructure
- Citizen Engagement in the Renewable Energy Transition
- Regulation of System Operators, Generators and Suppliers
- Minimum Standards, Public Safety and Electrical Safety Regulation
- National Electricity Grid network charges
- Efficient development of the National Electricity Grid
- Potential impact on the ability to meet carbon budgets
- Potential impact on the plan-led deployment of renewable generation assets
- Whether there should be a Private Wires ‘Dial before you Dig’ scheme
- Interaction with Ireland’s demand side flexibility targets
- Whether Private Wires will benefit the State
- Potential impact on the public acceptance of National Electricity Grid infrastructure and Grid‑connected renewable generation projects, and whether Private Wire projects should be required to establish community benefit funds
- Access to private property and whether any statutory powers should be given to Private Wire owners
- Access to public roadways and State lands for Private Wire infrastructure
- Whether changes to the current wider electricity system, or an accelerated delivery of National Electricity Grid infrastructure and Grid connections, would negate the call for Private Wires
Potential of Private Wires
Currently, all of the national grid infrastructure in Ireland is owned by the Electricity Supply Board (ESB). However, if Private Wires were permitted, private individuals or companies other than ESB could install their own privately owned electricity infrastructure, outside the confines of their own property, and transmit electricity over this infrastructure, linking generation with demand.
By circumventing the national grid, issues around grid constraint could be avoided, opening up currently constrained areas to new electricity generation projects and potential local investment. Private Wires could also facilitate ‘off-grid’ energy generation, storage and usage models that are not currently facilitated, such as energy parks and the co‑location of generation and demand.
Conclusion - the importance of stakeholder and community feedback
Responses to this consultation paper will help inform the design and delivery of a Private Wires policy, that DECC intends to launch in 2024.
DECC recognises the importance of community support and is looking to gather as wide a range of views as possible as part of this consultation. As well as the views of those who may wish to own and/or use a Private Wire, DECC is also seeking the views of landowners, farmers, those involved in forestry and anybody else who may be impacted by the installation of Private Wire infrastructure.
It is important to note that respondents are not required to answer each of the 173 questions in the consultation paper, just those on which they have a view.
The Consultation Paper is available at this link: Private Wires - Public Consultation Paper.
The deadline for submitting responses has been extended to 5.30pm on Friday 27 October 2023.
For more information, contact a member of our Energy team.
People Also Ask
What are Private Wires? |
Private Wires can be classified as being either Private Lines or Private Networks, where private individuals or companies run their own electricity cables, separate from the National Electricity Grid, in order to transfer electricity to demand users. |
What is a Private Line? |
A private line is a privately owned electricity line, and associated infrastructure, used to supply electricity that links a single generation site with a single demand user. |
What is a Private Network? |
A private network is a privately owned electricity system consisting of associated cables and infrastructure, used to transport and supply electricity, that links a single generation site with multiple demand users, or multiple generation sites with a single demand user or multiple demand users. |
Are Private Wires permitted in Ireland? |
No. Private Wires are not currently permitted in Ireland, but the Irish Government intends to launch a Private Wires policy in 2024. |
The content of this article is provided for information purposes only and does not constitute legal or other advice.
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