In this publication, we identify the key energy policy and regulatory developments from October 2024[1] – February 2025. This tool is intended as a snapshot for developers, investors, banks and other institutions working in – and supporting – the energy sector in Ireland.
Highlights
- Offshore wind: The Department of Environment, Climate and Communications (DECC) and the Commission for Regulation of Utilities (CRU) have published a number of policy updates and decisions supporting the development of offshore wind, with the second offshore wind auction expected later in 2025.
- EU infringement actions: The EU Commission has urged Ireland to fully transpose the Renewable Energy Directive (RED). In September 2024, the EU Commission opened infringement proceedings for failures in relation to the transposition of permitting procedures. In November 2024, Ireland received a final warning in relation to not fully transposing EU rules on the promotion of the use of energy from renewable sources. This pointed to issues in relation to the transposition regarding procedures to simplify and accelerate permitting procedures both for renewable energy projects and for the necessary infrastructure projects to incorporate the additional renewable energy into the electricity system.
- Renewable Electricity Support Scheme 5: DECC has published a consultation on the terms and conditions for the fifth competition under the Renewable Electricity Support Scheme in the Republic of Ireland.
September 2024 - EirGrid and ESB published the DSO/TSO Multi-Year Plan 2025 - 2029
EirGrid and ESB published the ‘DSO/TSO Multi-Year Plan 2025 -2029’ (DOC-041024-IBK) in September 2024. This plan covers 2025-2029 and sets out the areas of focus for both operators under the pillars of:
- Whole of System Approach
- Facilitating New Technology and System Services
- Reducing Dispatch Down
- Secure Future Power System
26 September 2024 – EU Commission warns Ireland for failure to transpose accelerated permitting measures under RED III
The EU Commission initiated infringement proceedings against 26 Member States, including Ireland, on 26 September 2024. The proceedings concerned a failure to transpose the revised RED provisions relating to the simplification and acceleration of permitting procedures. The revised RED (Directive 2023/2413 amending Directive 2018/2001) (RED III) entered into force in November 2023 and certain provisions had to be transposed into national law by 1 July 2024.
Member States were given two months to provide a response and complete the transposition. Where Member States fail to comply, the EU Commission may issue a reasoned opinion.
The DECC is at present working to transpose the Directive prior to the principal deadline of 21 May 2025. View the publication.
14 October 2024 – CRU publishes decision on Phase 2 Offshore Wind – Grid Connection Pathway
The CRU published a decision paper on ‘Phase 2 Offshore Wind – Connection Pathway (CRU2024124)’ on 14 October 2024. The decision creates a pathway, with clear milestones, by which a Phase 2 offshore project can secure and execute. It also sets outs the obligations of EirGrid, the transmission system operator, to facilitate grid access to projects participating in any of the Phase 2 auctions. View the publication.
15 October 2024 – DECC publishes Consultation on the Electricity Market Design Directive
DECC published a consultation in relation to the New Electricity Market Design Directive (Directive EU 2024/1711) (the Directive) on 15 October 2024. The aim of the Directive is to put consumers at the forefront of the clean energy transition and includes measures to enhance protection for consumers and allow more flexibility to accommodate the increasing share of renewable energy in the grid.
This Directive includes a number of optional provisions and the goal of this consultation is to assist with transposition of these optional provisions. The consultation closed on 29 November 2024. View the publication.
16 October 2024 – CRU publishes Phase 2 Offshore Wind – Grid Connection Charging Policy
The CRU published the ‘Phase 2 Offshore Wind – Grid Connection Charging Policy’ on 16 October 2024 (CRU 2024125) (the Policy).
The key features of the Policy include:
- a requirement for the Phase 2 offshore wind project to pay an offshore grid connection charge (the OG-TUoS)
- the OG-TUoS will be fixed for a period of 30 years
- the OG-TUoS will be fixed in advance of the state auction (based on EirGrid’s estimated cost of the connection assets)
The decision applies to offshore wind projects seeking to connect to the transmission grid via Phase 2 and which are supported by the Offshore Renewable Electricity Support Scheme (ORESS) only. View the publication.
23 October 2024 – DECC publishes the final South Coast Designated Maritime Area Plan for Offshore Renewable Energy (SC-DMAP)
DECC published the ‘South Coast Designated Maritime Area Plan (SC-DMAP) for Offshore Renewable Energy’ on 23 October 2024.
The SC-DMAP is the first forward spatial plan for offshore renewable energy in Ireland (the so-called “plan-led” approach) and identifies four maritime areas as potential locations for future offshore renewable energy projects. One area identified, known as Tonn Nua, will be developed as part of the second offshore wind auction, which is expected in 2025.
Any project seeking to develop in one of the four maritime areas will be required to obtain a Maritime Area Consent from the Maritime Area Regulatory Authority and subsequently go through the development permission application and assessment process. View the publication.
29 October 2024 – SEM Committee publishes decision on SEM Operational Parameters for 2025
The SEM Committee published the decision paper on the ‘SEM Operational Parameters 2025’ on 29 October 2024. It is based on reports from SEMO, the marker operator, and a market consultation previously undertaken by the market operator and transmission system operators.
This decision paper identifies Required Credit Cover and Uninstructed SEM Imbalances parameters which will apply from 1 January 2025 until at least 31 December 2025. A separate consultation will be carried out to determine values to apply from January 2026. View the publication.
31 October 2024 – Government approves second Offshore Renewable Energy Support Scheme (ORESS2) terms and conditions
The Government approved the terms and conditions for the second offshore wind auction (the “Tonn Nua” auction) on 31 October 2024. The auction process is anticipated to take place in 2025 and is expected to procure 900 megawatts (MW) of renewable energy. This will be the first offshore auction to take place within Ireland’s first spatial plan for offshore renewable energy development, the SC-DAMP. View the publication.
7 November 2024 – DECC publishes critical geophysical data for State’s second offshore wind auction
DECC published critical geophysical datasets on 7 November 2024, which will support prospective auction participants in their analysis ahead of Ireland’s second offshore wind auction, O-RESS Tonn Nua. This follows the finalisation of the terms and conditions for the auction, as published by DECC in October 2024. View the publication.
8 November 2024 – DECC publishes General Scheme of the Heat (Networks and Miscellaneous Provisions) Bill 2024
DECC confirmed government approval of the Heat (Networks and Miscellaneous Provisions) Bill 2024 (the Bill) on 8 November 2024. The Bill seeks to provide a framework for the district heating sector in Ireland.
The General Scheme of the Bill was developed by the DECC following recommendations from the District Heating Steering Group and a consultation with relevant departments, agencies and stakeholders. Further consultations are expected as the legislation is developed. View the publication.
14 November 2024 – EU Commission issues Ireland a reasoned opinion for failure to transpose the Renewable Energy Directive
The EU Commission sent Ireland an additional reasoned opinion on 14 November 2024 for its failure to fully transpose EU rules on the promotion of the use of energy from renewable sources set out in RED.
The opinion points to gaps in the transposition in relation to guarantees of origin for energy from renewable sources and the sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels. Ireland was required to transpose the Renewable Energy Directive fully within two months of the additional reasoned opinion, with the EU Commission noting that a failure to do so could result in a potential referral to the Court of Justice of the European Union. View the publication.
3 December 2024 – SEM Committee publishes Capacity Remuneration Mechanism T-1 2025/2026 Decision Paper
The SEM Committee published the ‘Capacity Remuneration Mechanism T-1 2025/2026 Capacity Auction Parameters Decision Paper (SEM-24-078)’ on 3 December 2024.
The following key parameters were included:
- Auction Price Cap: €160,545 / de-rated MW / year
- Existing Capacity Price Cap: €53,515 / de-rated MW / year
- New Capacity Investment Rate Threshold: €300,000 / de-rated MW
- Intermediate Contract Investment Rate Threshold: €100,000 / de-rated MW
- Early Delivery Incentive Start Date: 1 July 2025
The auction is due to take place on 22 May 2025. View the publication.
13 December 2024 – DECC publishes alterations to RESS3 Milestone Dates
DECC published a supplementary note altering a number of the milestone dates for RESS 3 projects on 13 December 2024.
DECC has extended three milestone dates due to exceptional circumstances affecting RESS 3 projects, including: grid delays from EirGrid and ESBN, an increase in lead times for critical materials, and system operator grid outage availability.
The following interim milestone dates and final milestone dates now apply:
- provision of the “Funding Certificate”:
- Interim Milestone Date: 31 January 2025
- Final Milestone Date: 31 April 2025
- provision of evidence regarding the second stage payment under the grid connection agreement:
- Interim Milestone Date: 31 January 2026
- Final Milestone Date: 31 July 2026
- provision of the “Commercial Operational Certificate”:
- Interim Milestone Date: 20 April 2027
- Final Milestone Date: 30 April 2028
18 December 2024 – CRU publishes decision on Phase 2 Offshore Wind – Grid-related Information
The CRU published ‘Phase 2 Offshore Wind - Grid-related Information’ on 18 December 2024 (CRU2024141). The decision paper outlines the CRU’s proposed approach to grid-related policy matters that will apply to offshore wind generation projects seeking to connect to the transmission system under Phase 2 of Ireland’s offshore development programme.
The decision provides clarity related to:
- Guarantee of Availability (GoA)
- Firm Access Quantities (FAQs)
- Operational and Maintenance (O&M) costs
- Term of Connection Agreement
- Onshore Grid Charges (ESB-owned connection assets)
This is decision paper supplements the CRU’s previous decisions in relation the Grid Connection Pathway (see above) and Grid Connection Charging (see above). View the publication.
20 December 2024 – DECC publishes Consultation on Terms and Conditions for Fifth Renewable Electricity Support Scheme (RESS 5) Auction
DECC published a consultation on the terms and conditions for the fifth competition under the Renewable Electricity Support Scheme on 20 December 2024. The aim of the consultation was to receive stakeholder feedback to ensure the efficient and cost-effective delivery of renewable electricity projects, taking on board learnings from RESS 4.
The consultation was scheduled to close on 14 February 2025. View the publication.
8 January 2025 – Energy Storage Ireland publishes recommendations for the Programme for Government
Energy Storage Ireland, the representative industry body for energy storage market participants, published recommendations for the Programme for Government on 8 January 2025.
The recommendations include a call on Government to:
- implement the national energy storage strategy set out in DECC’s previously published Electricity Storage Policy Framework
- implement frameworks for long-duration energy storage
- allow for full and fair participation for storage in the energy market
- remove all barriers to co-located projects
- ensure planning system supports the deployment of renewable supporting infrastructure (including energy storage)
18 February 2025 - CRU publishes Proposed Decision Paper on Large Energy Users Connection Policy
The CRU published a proposed decision paper on the Large Energy Users connection policy on 18 February 2025. The aim of the proposed decision paper is to create a pathway to enable connection of large energy users – specifically data centres – to Ireland’s electricity grid, while also balancing Ireland’s climate objectives, security of supply and continued economic growth.
The consultation period closes on 4 April 2025. View the publication.
Read more in the ALG insight: CRU Proposed Decision Paper on Large Energy Users Connection Policy
26 February 2025 – EU Commission publishes the Clean Industry Deal
The EU Commission published the Clean Industry Deal on 26 February 2025. It focuses on the energy-intensive industries sector and clean technologies sectors. The Clean Industry Deal aims to accelerate decarbonisation, support the circular economy and promote re-industrialisation, as foundations of growth and prosperity across Europe. View the publication.
For more information please contact authors Ross Moore, partner, Aisling O'Donoghue, senior associate, Louise Sharkey, knowledge lawyer or any member of the Energy, Infrastructure & Natural Resources team.
[1] Update covers 26 September 2024 to February 2025.
