Connection to the grid

Updated: 08.01.2019

Author: Georgios Maroulis

The Irish grid operators are obliged to provide a connection offer to every operator of a (renewable) energy plant if the  plant operator has applied for such a connection (Sec. 34 (1) ERA). A plant operator's contractual claim for connection arises when the connection agreement is concluded.

Entitled party. The entities entitled are the plant operators (4 CER/05/049).

Obligated party. The parties obligated to establish connection are the grid operators (distribution/transmission system operator) (Sec. 34 (1) ERA).

Since 2004, renewable energy plants have been connected within the so-called Group Processing Approach according to a decision by the Irish regulatory authority CER (CER/04/381, Section 4 of CER/05/049). Under this approach, grid connection applications are processed in groups, through a series of so-called "Gates", and plants are connected in groups as well. The current Group Processing Approach (GPA), Gate 3, is processing applications amounting to 3.900 MW of renewable capacity.

Small plants (in general below 5 MW; wind energy plants below 0.5 MW) may be treated outside the Group Processing Approach if their connection is in the public interest and the regulatory authority agrees to grant exemption (4.4 CER/05/049, CER/09/099).

As of 2018, a new connection procedure is put into place. According to CER/18/058, the Enduring Connection Policy (ECP-1) concerns all new applicants for a grid connection. New connection offers will be distributed in batches. For 2018, at least 1,000 MW of new connection offers will be made (2.1 CER/18/158).

Procedure

Process flow

The connection process for renewable energy plants usually comprises the following steps:

  • The plant operator applies to the grid operator (EirGrid (TSO) or ESB Networks (DSO)) for connection. 
  • The grid operator makes a connection offer.
  • The plant operator must accept the offer within 50 working days.
  • Group Processing Approach: The connection application joins the application queue. Applications are processed and plants are connected in groups.
  • Small-scale plants: Small plants are treated outside the Group Processing Approach if they meet certain requirements.

The currently applicable procedure is defined in the ERA and in a decision by the regulatory authority (CER/08/260). EirGrid runs the ITC (Incremental Transfer Capacity) Programme to identify the scheduled firm transmission capacity to be provided to Gate 3 projects for each year from 2010 to 2025 (CER/08/260). CER/09/192 provides for the allocation of scheduled firm capacity in the ITC Program.

As of 2018, the ECP-1 connection process is in place. Existing applicants with live connection offers and non-GPA applicants in process will have the option to fold into the 2018 batch. Under the two categories, 56 projects (amounting to 1,546 MW) have decided to suspend their processing and may, following this decision, decide to fold into the 2018 batch (2.1 CER/18/158).

In relation to plants with maximum export capacity (MEC) 500kW the grid connection procedure is as follows:

  • Closing date for applications:  Plant operators submit their application to the system operator (EirGrid). New applicants may include information as to whether they apply as a DS3 provider or otherwise (3.1 CER/18/158 Annex I).
  • Applications check completed: One of the prerequisites for receiving the connection offer is the submission of a planning permission. Evidence of planning permission (including, for offshore projects, foreshore lease) for the project from the relevant planning authority (or the relevant Government department) must be submitted where required. There are exemptions from that provision, such as DS3 qualified projects (3.3 CER/18/158 Annex I). The grid operator will examine the application based on pre-defined criteria (6.1 CER/18/158 Annex I).
  • Fees and clarifications received deadline: The initial application fee of €7,000 (including VAT) is required of new applicants greater than 500kW. The full application fee (including VAT) is required of new applicants less than or equal to 500kW (3.2 CER/18/158 Annex I). Furthermore, where there are minor clarifications required of the applications, the system operators will write to the applicants to request them along with the balance of the application fee. The fees are presented in the following table (6.1 CER/18/158 Annex I)

A

B

C

MIC & MEC Capacity Ranges

Demand Capacity (MIC)

Generation  Capacity (MEC)

Shallow Works

0 - 11kW

€0

€0

€0

> 11kW - 50kW

€0

€763

€0

>50kW ≤ 500kW

€0

€1,557

€0

>500 KW ≤ 1 MW

€0

€8,841

€0

>1 MW ≤ 4 MW

€12,468

€18,111

€0

>4 MW ≤ 10 MW

€21,558

€18,327

€18,327

>10 MW ≤ 20 MW

€21,558

€33,060

€34,497

> 20 MW ≤ 100MW

€35,438

€47,485

€39,528

> 100 MW

€48,527

€50,858

€44,971

Demand only: Fee = AMIC + CMIC – D

Generation only: Fee = BMEC + CMEC – D

Demand & Generation: Fee = AMIC + BMEC + MAX [CMEC, CMIC] – D

Where D is the sum of the credits for pre-feasibility and advanced works studies still relevant. Determination of D will be calculated by the relevant system operator.

  • First offers issued: The system operators will determine the nodes and subgroups (if any) that the batch qualified applications will connect into using the gate 3 node assignment and grouping rules (6.1 CER/18/158 Annex I)
  • Last offers issued: 
  • Last offer accepted / lapsed: 

In relation to plants with maximum export capacity (MEC) between 11kW- 500kW, DS3 system services until 500kW and auto producers (non- batch process) the grid connection procedure is similar to the previous process. Applications for MEC less than 40 MW should be submitted to the distribution system operator (DSO).

 

Deadlines

The grid connection offer shall specify a term for connection or a deadline by which the plant shall be connected to the grid (CER/04/319, 4.2. CER/05/049). Offers for connection to the transmission grid may include "milestones" which the plant operator has to achieve within the period from the connection agreement to the establishment of connection (4.2. CER/05/049). The possibility to define milestones does not exist for offers for connection to the distribution grid. 

A plant operator must accept the grid operator's connection offer within 50 working days (7.5 CER/08/260).

For the ECP-1, the deadlines are set as follows (6.2 CER/18/158 Annex I):

1. Closing date for applications is the publication of the ECP-1 decision + 2 months 

2. Applications check completed: Step 1 + 2 months 

3. Fees and clarifications received deadline: Step 2 + 1 month 

4. First offers issued: Step 3 + 4 to 5 months 

5. Last offers issued: Step 3 + 10 months 

6. Last offer accepted / lapsed: Step 5 + 3 months 

7. Ready to start next batch 

Priority to renewable energy

  • Priority to renewable energy
  • Non-discrimination

  • Non-discriminatory connection. The grid operator is obliged to connect renewable energy plants without discriminating between any persons or classes of persons (Sec. 34 (8) ERA). The regulatory authority may decide that the connection of renewable energy plants shall be given priority (Sec. 9 (5) (e) ERA). So far, the regulatory authority has not taken such a decision. 
  • Group Processing Approach. However, renewable energy plants are connected under the so-called Group Processing Approach (GPA). The GPA aims to speed up the connection of renewable energy plants by providing standardised procedural steps, and to increase connection security. This procedure was especially designed for RES plants (1 CER /05/049). 
  • Processing outside the Group Processing Approach: Small plants may be treated outside the GPA. In general, this rule applies to plants with a capacity of up to 5 MW (wind energy plants are considered small if they have a capacity of up to 0.5 MW), connection is in the public interest, a connection can be established faster outside the GPA, and the regulatory authority has granted exemption from the GPA (4.4 CER/05/049, CER/09/099). In addition, certain providers of system services under the DS3 Programme will be eligible and prioritised for a connection offer under the non-GPA process, until the enduring connection policy in line with the provisions of the new RES support scheme is in place. The DS3 programme is a multi-annual programme by EirGrid which envisages ensuring that the power system can be operated with increasing amounts of variable non-synchronous renewable generation over the coming years. For the sake of grid stability, wind and solar energy installations are not eligible to the connection offer under the non-GPA process (6.2 CER/16/284).
  • ECP-1: Under ECP-1 in the event that the batches total threshold has been exceeded, a prioritisation system will be applied. Applications will be chosen in the following order (5 CER/18/158 Annex I):
    • DS3 qualified projects up to 400 MW threshold. 
    • All other applications will be prioritised in the order of the planning permission’s expiry date, i.e. an application with a shorter planning permission validity period will be prioritised over an application with a longer planning permission validity period.
    • Where applications have a planning permission expiry date in the same quarter, the received complete date of the connection application will be used, i.e. an application with an earlier received complete date that will be prioritised over an application with a later received complete date.

Capacity limits (quantitative criteria)

The total capacity of newly connected plants is limited, as the Gates have a planned maximum size. Gate 3 (current iteration) provides for connection offers for 3.900 MW of renewable capacity. This capacity will be sufficient to reach Ireland's renewable target of 40% of electricity consumption from renewable sources by 2020 (4.4 CER/08/260).

It should be noted that the applicants for Gate 3 have already been selected. New applications will be processed only when all connection offers under Gate 3 have expired (50 working days after the connection offer was sent to the applicant) and Gate 3 can thus provide additional connection capacity, or when a new selection process ("Gate 4") is initiated (5.13, 7.5 CER/08/260).

The maximum gate capacity does not apply where small plants are processed outside the GPA. Furthermore, eligible projects wishing to terminate their connection agreement and release their full contracted capacity under a given gate, may submit a formal application to the system operator within four months (October 2016) (3.4 CER 16/284). The system operator is encouraged to approve the termination while 80% of the first stage payment of the grid connection will be refunded (6.1 CER/16/284). Nevertheless, an additional arrangement foresaw that plants were eligible to apply for a partial capacity release, free of a Maximum Export Capacity (MEC) reduction charge, by 30 June 2017 (2 CER/17/090). Plants operators with a valid connection agreement in place with MEC greater than 5 MWthat requested MEC release of at least 3 MW and had submitted an application form to the relevant system operator signed by the plant operator by 30 June 2017, were eligible to apply for a partial capacity release (2.1 CER/17/090).

Under the ECP-1, the threshold for processing applications under the non-batch process is 30 offers per year (12.2 CER/18/158 Annex I). Apart from that, for 2018, at least 1,000 MW of new connection offers will be made (2.1 CER/18/158). Furthermore, there are thresholds for DS3 projects (400 MW and 100 MW per project) (4.1 CER/18/15/158).

Distribution of costs

Plant operator

The plant operators are to bear the costs of connecting their plants to the grid (Sec. 34 (2) (d) ERA in conjunction with 4.8 (2) CER/05/049).

Ireland

Further information