Ireland's Commission for Regulation of Utilities (CRU) has published a decision paper updating the country's biomethane connections policy, introducing changes designed to reduce the cost of connecting anaerobic digestion plants to the gas network and support the national target of 5.7 TWh of indigenously produced biomethane by 2030.
The most significant change is an extension of the economic test appraisal period from 10 to 15 years. The economic test determines whether a connecting party must pay a supplemental contribution on top of the standard 30% upfront cost share, based on whether projected network tariff revenues will cover the socialised portion of connection costs.
The longer appraisal period is expected to reduce or eliminate supplemental contributions for more projects, particularly smaller plants and those located further from the existing network.
Gas Networks Ireland (GNI) modelling suggests the change could allow a typical 40 GWh/year plant to connect from up to 4km away without incurring a supplemental charge, compared to just under 2km under current rules.
The CRU has also revised financial security requirements, introducing a two-phase approach that distinguishes between construction and operational risk. During construction, financial security will cover all socialised capital costs excluding the Biomethane Network Entry Facility (BNEF), which GNI considers redeployable if a project does not proceed.
Once operational, security will be set at 70% of total socialised capex including the BNEF, reducing annually in line with tariff revenues from injected gas.
The previous seven-year cap on financial security obligations has been removed, with requirements instead falling away once cumulative revenues cover 70% of socialised costs.
The decision also establishes the regulatory treatment of Centralised Grid Injection (CGI) facilities, which allow biomethane produced at sites too remote for direct pipeline connection to be transported by road and injected at a shared facility.
GNI is developing the first CGI in Ireland at Mitchelstown, Co Cork, which when fully operational will enable injection of 700 GWh per year — equivalent to 12% of the 2030 national target. Connection costs at the CGI will be allocated pro rata based on contracted capacity, with the full cost of the facility used as the basis for calculating contributions regardless of construction phase, avoiding a first-mover disadvantage for early connectors.
The CRU received responses from 27 stakeholders during the consultation, with near-universal support for extending the economic test period, though many argued for a 20-year horizon.
The regulator concluded that 15 years struck the appropriate balance between developer viability and consumer protection against stranded asset risk.
Ireland eases biomethane grid connection rules in push for 2030 target
