Insights

Historically, "behind the meter" connections have faced legal and regulatory uncertainty, particularly due to Ireland’s single buyer electricity market model and grid access obligations. However, recent policy developments, including provisions in the Climate Action Plan 2024 and anticipated updates to the Electricity Regulation Act, signal a shift toward enabling private wires as a tool to accelerate decarbonisation.

New legislation, currently in development, aims to clarify the legal framework for private wires, particularly for co-located and industrial-scale renewable energy projects. These changes would allow companies to source clean power directly from local wind, solar, or other renewable projects, reducing demand on the national grid and lowering emissions.

The implications are significant. Private wires can improve energy efficiency, reduce curtailment of renewable generation, and unlock investment in on-site and near-site renewables, particularly for large energy users in manufacturing, data centres, and the public sector. They also support Ireland’s 2030 targets by enabling more decentralised, resilient, and carbon-free electricity use without the need for major grid upgrades.

However, implementation must balance grid integrity, energy market fairness, and consumer protection. If successfully regulated, private wire arrangements could play a vital role in Ireland’s path to a low-carbon economy, complementing grid-based renewables and contributing meaningfully to emissions reductions across multiple sectors.