Ireland Electricity Regulation Act 1999: Section 37 Direct Lines Guide

Updated 6 September 2026 · By SolarNevs Research Desk, Dealer surveys + verified sources · 1 source · Method ↗

Key Takeaways

Section 37 of the Electricity Regulation Act, 1999 empowers the Commission for Regulation of Utilities (CRU) to authorize private wire direct lines.
Permission is triggered when grid connection is refused by ESB Networks or EirGrid due to lack of transmission or distribution network capacity.
Mandates that direct lines comply with technical compatibility standards prescribed by the Commission.
Explicitly authorizes direct line owners to transport renewable electricity to other eligible commercial customers.
Establishes statutory compensation rules under the Acquisition of Land (Assessment of Compensation) Act, 1919 if the line is transferred to the Board upon grid intertie.

Statutory Purpose of Section 37

Under the ELECTRICITY REGULATION ACT, 1999 (Act No. 23 of 1999), THE COMMISSION FOR ELECTRICITY REGULATION exercises statutory authority over system licensing and infrastructure permissions.

Section 37 provides a vital legal pathway for utility-scale solar developers and energy-intensive off-takers (such as data centres and pharmaceutical plants) to construct dedicated private wire direct lines when public grid reinforcement timelines would otherwise delay renewable deployment.

Direct Line Permission & Compatibility Matrix

The CRU evaluates and governs direct line projects under four statutory pillars:

Statutory Pillar	Legislative Mandate	Commercial & Technical Application
Trigger Condition	Access refused by the Board due to lack of capacity	Overcomes grid queue constraints for large-scale solar projects
System Independence	Direct line not connected to the transmission or distribution system	Creates a dedicated behind-the-meter or private distribution circuit
Technical Compatibility	Comply with conditions to ensure compatibility with transmission system	Enforces voltage control, fault protection, and cable insulation standards
Multi-Customer Supply	Allow direct line to be used for transport of electricity to eligible customers	Enables corporate multi-party solar power purchase agreements (PPAs)
Grid Intertie Transfer	Transfer ownership to Board with compensation under Acquisition of Land Act 1919	Protects investor capital if the line is absorbed into national grid

Compliance Steps for Solar Developers Seeking Direct Line Permission

To successfully execute a private wire solar project under Section 37:

Document Formal Grid Refusal: Secure written confirmation from ESB Networks or EirGrid verifying that access was refused due to lack of capacity.
Submit CRU Section 37 Application: File engineering single-line diagrams demonstrating full technical compatibility with national grid voltage and frequency standards.
Execute Multi-Customer Agreements: Formalize transport contracts with eligible commercial customers along the direct line corridor in compliance with Section 37(3).

Frequently asked questions

Under what statutory condition may the CRU grant permission to construct a direct line under Section 37?

Under Section 37(1), where access to the transmission or distribution system is refused by the Board due to lack of capacity, the Commission may permit the applicant to construct a direct line not connected to the public system (August 2026).

What technical conditions must a direct line comply with under Section 37(2)?

The person must comply with technical and other conditions specified by the Commission, including those necessary to ensure compatibility with the transmission or distribution system (August 2026).

Can a private direct line be used to supply electricity to multiple corporate customers?

Yes. Under Section 37(3), the owner of a direct line constructed under subsection (1) may allow the line to be used for the transport of electricity to other eligible customers (August 2026).

What happens if a direct line is subsequently connected to the public electricity grid?

The Commission may direct ownership transfer to the Board with statutory compensation assessed under the Acquisition of Land (Assessment of Compensation) Act, 1919 (August 2026).

References

Irish Statute Book: Electricity Regulation Act, 1999 — accessed 31 August 2026