Private Wires Policy: Unlocking Private Electricity Infrastructure – Oil, Gas & Electricity

On 15 July 2025, the Irish government published its Private Wires Policy Statement (the “Policy Statement”), marking a significant step in reforming the Irish electricity sector.

Ireland
Energy and Natural Resources

BACKGROUND

On 15 July 2025, the Irish government published its
Private Wires Policy Statement (the “Policy
Statement”), marking a significant step in reforming
the Irish electricity sector.

The Policy Statement supports the development of a framework for
private companies to build, operate and own electricity lines (ie,
“private wires”).

It is worth noting, at the outset, that the Policy Statement is
just that. The measures that will actually give effect to this
policy (eg, legislative amendments) have not yet been developed and
it is only when they are available that the policy can be assessed
in meaningful detail.

In the meantime, this update:

summarises the Policy Statement (including the key regulatory
conditions associated with constructing / owning a private
wire);

identifies the key considerations of the Policy Statement for
industry stakeholders; and

highlights next steps and implementation items.

EXECUTIVE SUMMARY

Subject to certain conditions, private entities will be
permitted to construct, own and operate electricity lines in
certain scenarios, unlocking opportunities for both energy
developers and demand customers alike.

Private wires will be permitted to (1) connect a single
generator to a single customer, (2) allow multiple legal entities
(eg, a wind farm SPV and a battery SPV) to share a grid connection,
(3) facilitate on-street electric vehicle parking, and (4) expand
the ability of self-supplying customers to onward supply
electricity to adjacent customers.

Further details are awaited on the implementing measures and
the Policy Statement indicates the potential for future public
consultation (although no timing is specified). In the meantime,
while the scenarios in the Policy Statement are limited in scope,
the policy will be seen by industry as a significant step in the
right direction.

PERMITTED SCENARIOS

The Policy Statement will facilitate the construction and
operation of private wires in four specific scenarios. These four
scenarios are set out below.

In each of these scenarios, the Policy Statement suggests that a
private wire must be (1) the most efficient approach to a new
connection and (2) in the public interest.

Scenario 1: Private Lines from a Generator to a
Customer

This scenario allows for a private wire to directly connect a
single generator (which includes battery storage) to a customer or
other electricity undertaking.

Customers will need to obtain permission from the Commission for
Regulation of Utilities (“CRU”) to
develop any such private wire. The CRU will ensure that:

The project aligns with, and serves, broader policy objectives
such as, security of supply, the offshore wind strategy and other
national climate objectives.

A more cost-effective, grid-based solution, is not available to
the customer within a reasonable period of time.

The system operators (ie, EirGrid and ESB Networks) can recover
the costs of the services they have contracted to provide to the
customer (including any revised tariffs, if necessary).

The private wire must meet the same technical and safety
standards as the national electricity grid (ie, in line with
EirGrid / ESB Network’s standards), and will be capable of
being taken in charge by the system operators.

From our reading of the Policy Statement:

It is not clear exactly how the ‘cost effectiveness’
test will be applied in practice. It is worth noting though that EU
law requires the criteria for granting an authorisation to
construct a private wire to be objective and
non-discriminatory.

It is also not fully clear if the above scenario assumes a
fully ‘off-grid’ model or if one (or both) customers could
have a public grid connection in addition to a private wire.

We expect that these issues will be clarified in due course by,
among other things, legislative amendments.

Scenario 2: Hybrid Connections

This scenario refers to cases where two companies (eg, a wind
farm SPV and a battery storage SPV) share a single grid connection.
This option builds on the Government’s pledge to
“ensure that hybrid technology grid connections are
facilitated, and remaining barriers removed” under the
Climate Action Plan 2023.

The Policy Statement notes that the CRU is exploring the legal /
regulatory changes required to allow multiple entities to share a
grid connection through a private wire.

Scenario 3: On Street Electric Vehicle
Charging

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The Policy Statement supports the use of private wires to
facilitate the development and deployment of public and private
electric vehicle (EV) charging infrastructure – noting the
national target that 30% of all private vehicles will be EVs by
2030.

The Policy Statement notes that existing legislation will be
clarified, and highlights the potential for private wires to be
permitted to be used in public or shared spaces to facilitate the
development of additional EV charging infrastructure.

Scenario 4: Expansion of Self Supply

This scenario envisages using private wires to expand existing
rules governing self-supply.

Under the existing regulatory regime, a customer is allowed to
generate electricity behind the meter for its own use / consumption
on a single premises because this does not involve any electricity
‘distribution’ or ‘transmission’.

Subject to safety and technical safeguards, the Policy Statement
indicates that private wires could be used to allow a customer who
generates electricity for self-supply to provide electricity to a
separate customer on a contiguous site.

From our reading of the Policy Statement:

The wording of this scenario is not entirely clear. On a strict
reading, it would require there to be two demand customers –
one of whom generates and consumes power, and who then supplies
some of this power to another customer. This would appear to
preclude that first customer being a generator (ie, no demand /
consumption) but it is unclear if this is an intentional limitation
or not.

Similarly, the reference to a ‘contiguous’ site
suggests that the second customer must be on an immediately
adjacent (ie, touching) site. This would appear to preclude a
private wire connecting two nearby, but non-contiguous, sites.
Again, it is unclear if this is an intentional limitation or
not.

Again, we expect that the implementing measures will clarify the
position on these two items.

KEY STAKEHOLDER TAKEAWAYS

Whilst there remains a degree of uncertainty around the details
of the private wire framework (while we await legislative and
regulatory changes), the Policy Statement represents a significant
step for the development of electricity infrastructure in
Ireland.

We have summarised key takeaways for certain stakeholders
below.

NEXT STEPS AND TIMELINE

The Policy Statement outlines several critical areas requiring
updates to enable successful implementation. These include:

introducing primary legislation to amend the Electricity
Regulation Act 1999 to allow for private wires;

supporting regulations to define standards and processes for
granting permission for private wires;

providing additional resources to the CRU to allow for adequate
oversight of private wires; and

continuing to monitor industry developments to refine the
Policy Statement.

The Policy Statement notes that public consultation responses
recommended a further round of engagement prior to the
implementation of this policy which may be necessary to further
refine the approach and ensure alignment with stakeholder needs.
The Policy Statement does not clarify when such public consultation
might take place.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.