Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I thank the Deputy for raising this important topic. I will set out the policy position and outline the views of stakeholders on the issue. I will then discuss the proposed consultation. The current legislative framework does not for the most part allow for privately-owned power lines. The ESB is the sole distribution asset owner and ESB Networks is the sole distribution system operator in the State. On a practical level this means the ESB owns the electricity distribution while ESB Networks, a subsidiary of the ESB, builds and maintains all distribution level network infrastructure.

The Deputy may be interested to know this position has its roots in the early years of the State when the ESB was established by the Electricity (Supply) Act 1927. On its establishment it was placed in charge of operating, managing and maintaining what we now know as the Ardnacrusha power plant along with distributing electricity nationwide. The ESB chose, as allowed for under the Act, to take on the direct responsibility of distributing electricity to consumers and set about creating our electricity network. The results of this decision, once fully enacted and after the ESB had acquired all existing electricity undertakings operating in the State, was the creation of a standardised national network in the control of the ESB.

The current electricity market environment is very different, with a liberalised and interconnected market in operation. However, as the Irish energy sector evolves further and moves towards renewables and a zero-carbon economy we must review the environment in which electricity suppliers operate. The Electricity Regulation Act 1999 provides in limited circumstances for the construction by private entities of electricity lines and infrastructure. However the Act also provides that the ESB can gain ownership of such constructions, either through agreement or at the direction of the Commission for Regulation of Utilities. Notwithstanding the current position in respect of direct lines and private wires, it is important to emphasise the scale and ambition of what we are looking to do in delivering to reduce our dependency on fossil fuels and make Ireland a world leader in delivering renewable energy as part of our drive towards a low-carbon system.

The Government is very aware of calls from stakeholders for amendments to be made to the legislation and regulations on direct lines and private wire networks. Officials from the Department have met and continue to engage with interested parties and stakeholders in the area. These stakeholders have indicated that amendments to the status quocould allow for the deployment of more renewables across the electricity sector while reducing overall grid demand. They outlined three key areas where they wish to see direct lines and-or private networks providing electricity. These include business enterprise parks, large energy users and renewable energy communities. It has been outlined to officials that allowing for private networks for business parks and large energy users would have sectoral benefits for Ireland. These include increasing the attractiveness of our country as a base for foreign direct investment. It would also provide an environment for renewable generation. It is noteworthy that stakeholders have highlighted that there is a desire among many large corporations, in particular technology companies, to have renewable sources of generation directly linked or owned by the company.

Ireland has ambitious climate targets as I set out earlier. I believe the development of private wires can and will have a significant role in helping to meet them. Action No. 115 of the climate action plan commits the Department to reviewing the policy options on allowing private networks and direct lines. Government policy is that the ESB is the sole distribution asset owner and ESB Networks is the sole distribution system operator. In the interests of clarity it is warranted to point out there is a clear distinction between a private network and a direct line. The consultation will seek views and report on both matters. A direct line is regarded by the Department as a privately owned power line that connects one generator with one energy user. A private network on the other hand is a privately owned and operated electricity distribution network connecting end users with generators.

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