The government has set an ambitious target to connect at least 5GW of offshore wind by 2030. Delivering this offshore target will require significant upgrades to Ireland’s electricity network, including new infrastructure to connect offshore wind farms to the grid
EirGrid has been designated as the owner of Ireland’s offshore transmission assets and will ultimately take on responsibility for their operation and maintenance. In the initial phase, however, developers will build these assets before transferring them to EirGrid once complete.
For Phase 1 of offshore wind in Ireland, the offshore wind developer (Phase 1 Project) is responsible for developing the offshore wind transmission assets. These offshore transmission assets are the infrastructure that connect the offshore wind farm with the onshore electricity grid. These offshore transmission assets (during Phase 1) will be built by developers and later transferred to EirGrid. Following the transfer of offshore transmission assets, EirGrid will assume responsibility for their operation and maintenance (O&M). The associated costs for O&M will be recovered through network charges which are ultimately borne by electricity consumers.
Given the scale of offshore wind delivery targets over the coming years and the transfer of Phase 1 offshore transmission assets to EirGrid, the CRU considers that close collaboration and communication between EirGrid, the Phase 1 wind developers and all relevant stakeholders is essential, where it serves the interests of the Irish consumer.
The purpose of this consultation is to get stakeholder feedback on the mechanisms proposed for incentivising EirGrid to be ready to own and operate the offshore transmission assets and facilitate Phase 1 developers progressing with their development of Phase 1 projects. This consultation paper sets out the CRU’s proposed options for incentivising EirGrid’s behaviour in achieving this.
Q.1. Do stakeholders agree that the Phase 1 Incentive should cover: (i) operational readiness prior to asset transfer; (ii) constructive co-operation with Phase 1 developers; and (iii) maintaining momentum through the proving period to asset transfer?
Q.2. Do stakeholders agree with the CRU’s proposed metric selection criteria? Please provide reasons for your view?
Q.3. What are stakeholders’ views on the minded-to position and the alternative for incentivising timely delivery of the OARP? Please indicate a preferred option (minded-to position or the alternative) or propose an alternate approach and provide reasons.
Q.4. What are the stakeholders’ views on the minded-to position and the alternative for co-operation with Phase 1 developers? Please indicate a preferred option (minded-to position or alternative) or propose an alternate approach and provide reasons.
Q.5. What are stakeholders’ views on the options for maintaining momentum in the proving period? Do stakeholders agree with the CRU’s minded-to option? Please indicate a preferred option or propose an alternate approach with reasons.
Q.6. What are stakeholders views on the overall value of the incentive being set at €10 million?
Q.7. What are stakeholders’ views on the appropriate weights for the three incentive areas? Please provide reasons.
Q.8. What are the appropriate minimum performance conditions that should apply across the balanced scorecard?
Q.9. What practical mechanisms/process should be used to protect EirGrid where performance is materially affected by factors outside its control?
Q.10 How should the CRU take the performance of Phase 1 developers into account when assessing EirGrid’s performance under the Phase 1 incentive?
Offshore Phase 1 Incentives for EirGrid
The government has set an ambitious target to connect at least 5GW of offshore wind by 2030. Delivering this offshore target will require significant upgrades to Ireland’s electricity network, including new infrastructure to connect offshore wind farms to the grid
EirGrid has been designated as the owner of Ireland’s offshore transmission assets and will ultimately take on responsibility for their operation and maintenance. In the initial phase, however, developers will build these assets before transferring them to EirGrid once complete.
For Phase 1 of offshore wind in Ireland, the offshore wind developer (Phase 1 Project) is responsible for developing the offshore wind transmission assets. These offshore transmission assets are the infrastructure that connect the offshore wind farm with the onshore electricity grid. These offshore transmission assets (during Phase 1) will be built by developers and later transferred to EirGrid. Following the transfer of offshore transmission assets, EirGrid will assume responsibility for their operation and maintenance (O&M). The associated costs for O&M will be recovered through network charges which are ultimately borne by electricity consumers.
Given the scale of offshore wind delivery targets over the coming years and the transfer of Phase 1 offshore transmission assets to EirGrid, the CRU considers that close collaboration and communication between EirGrid, the Phase 1 wind developers and all relevant stakeholders is essential, where it serves the interests of the Irish consumer.
The purpose of this consultation is to get stakeholder feedback on the mechanisms proposed for incentivising EirGrid to be ready to own and operate the offshore transmission assets and facilitate Phase 1 developers progressing with their development of Phase 1 projects. This consultation paper sets out the CRU’s proposed options for incentivising EirGrid’s behaviour in achieving this.
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