Energy Update: Decision On Biomethane Connections

The Commission for Regulation of Utilities (“CRU”) published a policy on connecting biomethane producers to the gas network, including in relation to centralised grid injection (“CGI”) facilities.

This follows the consultation we considered here: Renewable energy: Consultation on biomethane connections, as well as other decisions supportive of biomethane, which we looked at here: Biomethane sector in Ireland: Decisions on Guarantees of Origin and Reverse Grid Compression.

Key points in the policy are summarised below.

Grid connections

Economic test for upfront costs

The economic test is designed to ensure that, over time, the socialised costs of a connection to the gas system will be recouped through the tariff revenues paid by the connecting party. The test is carried out in relation to a period of 10 years (the appraisal period). If assessed revenues are less than the socialised costs, the connecting party must pay a supplemental contribution (additional to the standard 30%