Energy and Infrastructure

DIRECT LINES BILL

An Electricity Regulation (Amendment) (No. 2) Bill 2026 is before Dáil Éireann. It is intended to amend the Electricity Regulation Act 1999 to provide for the permitting and regulation of direct lines. We look at the detail in our Insights blog post: Energy Update: Direct lines bill.

CO-LOCATION (MEC SHARING)

System operators EirGrid and ESB Networks published the Implementation Roadmap for Hybrid Co-Located sites with Maximum Export Capacity (“MEC”) sharing, which we consider in our Insights blog post: Energy Update: Implementation Roadmap for Hybrid Co-Located sites with MEC sharing. It follows the decision of the Commission for Regulation of Utilities (“CRU“), which we considered here: Energy Update: Sharing Maximum Export Capacity at electricity grid connection points.

BIOMETHANE

The CRU published a biomethane connection policy which we consider in our Insights blog post: Energy update: Decision on biomethane connections. The EU has also established a platform to connect buyers and sellers.

FAULT RIDE THROUGH

The CRU is consulting until 29 July 2026 on a compliance and derogation framework proposed by EirGrid as part of its Grid Code Modification MPID 345 (PDF 17.8 MB). EirGrid indicates that, during transient faults on the transmission system (which cause voltage dips), most data centres automatically reduce consumption from the grid and switch to their own temporary back-up power for an extended period. Under EirGrid’s proposed Grid Code modification, three new technical obligations will apply to existing and future transmission-connected demand facilities. They relate to fault ride through, RoCoF robustness and active power recovery. EirGrid proposes a streamlined group derogation process to manage the expected high volume of non-compliance applications. Data centres seeking a derogation in the group process would be subject to a Demand Utilisation Threshold and granted derogations would last for 24 months. The CRU plans to issue a decision as a matter of urgency.

NUCLEAR ENERGY

As demand for low‑carbon electricity continues to accelerate, nuclear power is increasingly back in focus as part of the global energy transition. We look at the legal position in Ireland and the wider EU policy context in our briefing: Nuclear energy: An overview of the position in Ireland.

LARGE ENERGY CUSTOMERS

The EU Tech Sovereignty package is intended to strengthen capacity across the digital technology stack, including through the delivery of data centre infrastructure. It comprises four measures which we consider in our briefing: The EU Tech Sovereignty Package: Implications for digital infrastructure developers and the energy sector.

CUSTOMER GAS CONNECTIONS

The CRU is consulting until 5 August 2026 on a proposed Direction to Gas Networks Ireland (“GNI”) requiring that all new connection agreements with “Relevant Large Industrial Customers” (defined as customers with a peak hourly demand above 50 MW thermal and a connection pressure of 16 barg or above) must incorporate a right for GNI to interrupt the capacity offered at the customer’s connection point.

The Direction would not apply to gas-fired generator applicants participating in the SEM, including gas-fired dispatchable generation provided by data centres (where it is separately connected, metered and participating in the SEM under the Large Energy User (“LEU”) Connection Policy). By contrast, if an LEU provides onsite gas-fired generation behind their own meter, gas supply to that generation would be interruptible. The Direction would not apply retrospectively.

CAPACITY REMUNERATION MECHANISM

The SEM Committee is consulting until 4 September 2026 on proposed design options for CRM 2.0. The consultation focuses on delivery timeframe, enhanced availability incentives, de-rating factors, the cost recovery mechanism, decarbonisation (including introduction of a green scalar) and flexibility integration. Proposals include that the main capacity auction would be held on a T-5 basis (retaining top-up T-1 auctions), with the optimal auction timeframe for storage to be kept under review. Proposals also include that a supplementary mechanism would broaden the reach of availability incentives beyond periods of the most extreme system conditions triggering the Reliability Option.

EU PRESIDENCY

The Programme of the Irish Presidency of the Council of the EU is available. Formal publication of the electrification action plan, review of the EU ETS, and proposals on network charges and energy taxation are scheduled for publication on 17 July 2026. Other priorities include finalisation of the Grids Package and the update of the energy security framework. Our webpage on the EU Presidency is available here: Ireland's Presidency of the Council of the European Union.

EU GRIDS PACKAGE

The Council of the EU agreed its negotiating position on the two legislative proposals in the Grids Package. Our briefing on the initial proposal is available here: EU Energy Grids Package. Overall, the Council’s position strengthens the role of Member States, softens certain mandatory requirements and introduces amendments to address Member State concerns regarding collection and allocation of congestion income. In response, Europe’s main wind industry group has urged the Parliament to press for strong permitting provisions and EU-wide grid planning.