Use of existing grid connection rules for Irish offshore projects ‘makes absolute sense’ – Pinsent Masons

The move follows the CRUs decision to require EirGrid, Irelands state-owned electric power transmission operator, to issue grid connection assessments (GCAs) to each Phase One applicant. A GCA, which details the method and cost of connecting a project to the transmission system at its onshore connection point, is required for Phase One projects to participate in the first upcoming offshore auction.

Murphy added: There are a number of inter-dependencies between all the processes that relate to consents, the auctions process, and grid connections for offshore generation projects. Because of this, continued close collaboration and co-ordination will be needed with DECC, EirGrid and industry as this work continues. Work in some areas, such as the process for transferring transmission connection assets to EirGrid, needs to be clarified as quickly as possible ahead of the first offshore auction.

Following an earlier consultation on grid connection and charging policies, the CRUs decision set out a number of changes to its initial proposals, including the timing of milestone payments and extension of the connection offer validity periods. It also provided further clarity on pass-through costs, explaining that EirGrids new standard process for such costs onshore will be used for offshore Phase One projects too. EirGrid will also communicate pass-through statements to Phase One projects every financial quarter after the Full Connection Offer has been executed.

The CRU decision also includes greater flexibility with Maximum Export Capacity (MEC) modifications, which it said will not necessarily cause a GCA to become invalid. It extended the MEC capacity testing period duration from twelve months plus an additional one month for every 10MW of MEC above 50MW to 24 months up to 400 MW of MEC, with an additional month for every 50 MW above 400 MW.

It also made changes to the MEC capacity testing bond payment timing, which will now be 25,000 per MW of MEC for renewable generation due on the earlier of three years post consents issue date (CID) or prior to energisation. Under the CRUs initial proposals, the bond would have been due on the earlier of two years post CID or prior to energisation.

The CRU also extended the term of connection agreements, which will now commence upon the date of execution and end no earlier than 30 years after the operational date, with an automatic one-year rolling extension. The regulator said this will continue until either party serves written notice of termination on the other party of no less than two years. The connection agreement term had previously been set at 25 years with one-year automatic rolling extensions.

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Use of existing grid connection rules for Irish offshore projects 'makes absolute sense' - Pinsent Masons