Policy Status

National Government Policy

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Ireland

Energy Policy & Climate Action

July 2018 The Irish Government published its National Policy Statement on Electricity Interconnection, welcomed by Greenlink as a major boost to investment.

The policy from the Department of Communications, Climate Action and Environment (DCCAE) recognised the benefits of interconnection to Irish energy security, competitiveness and sustainability - the three pillars of Irish energy policy - including benefits to consumers of "lower long term cost of electricity."

June 2019 The Irish Government published its Climate Action Plan 2019, which includes a call for greater electricity interconnection for Ireland "critical to absorbing high levels of renewable generation on to the system."

The Government noted that further interconnection to the UK is planned and made a commitment to "strengthening the policy framework to incentivise it".

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UK

Energy White Paper & Decarbonisation

December 2020 The UK government published its Energy White Paper 'Powering our Net Zero Future' which supported growth in interconnection.

"We will work with Ofgem, developers and our European partners to realise at least 18GW of interconnector capacity by 2030. This represents a three-fold increase from current levels and will position us as a potential net exporter of excess green energy, helping to keep wind turbines generating even when GB electricity demand has been met."

Alongside, the White Paper, BEIS published a report into the impact of interconnectors on decarbonisation, which showed that a higher level of interconnector capacity "could decrease cumulative emissions in Great Britain by up to 199 MtCO2e by 2050, as well as reducing total system costs".

Regulatory Approval: UK and Ireland

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UK

Ofgem Cap and Floor Regime

The Cap and Floor Regime is an arrangement introduced by the GB and Irish regulators to promote the development, financing and construction of electricity interconnectors where demonstrably beneficial to consumers.

September 2015
Greenlink granted a Cap and Floor Regime by Ofgem
May 2020
Ofgem's final decision on Cap and Floor variations for project financed interconnectors
June 2021
Ofgem published licence modifications for Cap and Floor regime implementation
September 2021
Ofgem published handbook explaining the cap and floor regime
October 2021
Ofgem published final decision on Greenlink's Final Project Assessment
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Ireland

CRU Regulatory Framework

The regulatory regime in Ireland largely mirrors the GB Cap and Floor regime in Ireland, insofar that law and regulation permits.

December 2017
Greenlink submitted interconnector application in Ireland
October 2018
CRU determined Greenlink construction was in the public interest
December 2020
CRU accepted Cap and Floor as most appropriate regime for Greenlink
September 2021
CRU published decision on Cap and Floor regulatory framework
February 2022
CRU issued Greenlink's Electricity Interconnector Operator Licence

For our responses to regulatory announcements, please see our News archive.