Ireland Electricity Regulation Act Section 16 Authorisation to Construct Guide

Key Takeaways

• You must obtain authorisation from the Commission for Regulation of Utilities (CRU) before constructing or reconstructing a generating station.
• The CRU has discretion to grant or refuse authorisation, and may specify terms including generating capacity.
• Unauthorised construction is a statutory offence, liable to a fine not exceeding substantial statutory fines.
• The CRU assesses applications based on Ministerial criteria, including grid safety and environmental protection.

Understanding Section 16: The Requirement for Authorisation

In Ireland, the construction or reconstruction of a generating station for the purpose of supplying final customers is regulated by the Electricity Regulation Act, 1999. Specifically, Section 16 of this Act mandates that "A person shall not construct or reconstruct a generating station... unless an authorisation has been granted to the person by the Commission." This applies equally to the Board, which "may not construct or reconstruct a generating station unless an authorisation has been granted to it by the Commission."

The Commission for Regulation of Utilities (CRU) holds the authority to grant or refuse such authorisations. When granting an authorisation, the CRU "may grant or may refuse to grant... subject to such terms and conditions as may be specified in the authorisation including terms and conditions as to generating capacity of the proposed generating station." This means the CRU can impose specific limits or requirements on the size and operation of your generating station.

Penalties for Non-Compliance

Failure to comply with Section 16 carries significant penalties. The Act states that "A person who contravenes subsection (1) shall be liable on conviction on indictment to a fine not exceeding substantial statutory fines." This statutory offence underscores the importance of securing the necessary authorisation before commencing any construction work on a generating station.

Section 18: Criteria for Authorisation Assessment

Section 18 of the Electricity Regulation Act, 1999, outlines the criteria that the Minister shall specify by order for the CRU's assessment of authorisation applications. These criteria guide the Commission's decision-making process.

The specified criteria include:

• "the safety and security of the electricity system, electric plant and domestic lines,"
• "the protection of the environment including the limitation of emissions to the atmosphere, water or land,"
• "the siting of a generating station and associated land use,"
• "the efficient use of energy,"
• "the nature of the primary source of energy to be used by a generating station,"
• "the qualifications of an applicant, including the technical and financial qualifications of the applicant," and
• "public service obligations provided for in an order under section 39."

These criteria ensure that proposed generating stations align with national energy policy, environmental protection goals, and grid stability requirements.

Application Process and Exemptions

The Commission for Regulation of Utilities (CRU) administers the standard Authorisation to Construct application procedure for commercial and utility-scale solar farms. We have not verified specific thresholds for small-scale generators, but secondary regulations indicate they "may benefit from statutory exemptions or class authorisations under secondary regulations."

It is important to note that obtaining planning permission from the relevant local authority or An Bord Pleanala is a mandatory prerequisite for any generating station construction. This guide focuses solely on the Electricity Regulation Act's authorisation requirements.