Ireland will reduce network charges for energy storage systems. The new rules will take effect in October.

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The Irish energy regulator CRU has announced plans to reform transmission network charges for energy storage systems. The changes aim to standardize tariffs and reduce operating costs across all storage technologies. The new regulation is part of broader efforts to adapt the market structure to the growing role of energy storage in the system. Public consultations on the matter are open until 13 May 2024.

Elimination of double charging

The main proposal is to exempt all storage units from demand-side transmission use-of-system (TUoS) charges applied to energy consumption. Instead, storage assets would be treated solely as generation units and subject to generator tariffs.

Key elements of the new regulation:

  • Effective date – the new rules are expected to apply in the 2026/2027 tariff year, starting 1 October 2026.
  • Scope of technologies – the reform extends exemptions, previously limited since 2020 to battery energy storage systems, to all available storage technologies.
  • Beneficiaries – the rules will apply to both standalone installations and those sharing a grid connection with generation units.
  • Exclusions – the new charging system will not apply to storage co-located with end consumers of electricity.

Price stabilization and support for renewables

According to the CRU, the change in the charging model will benefit end consumers by lowering electricity prices in the long term. Storage systems, acting as flexible assets, will be able to more efficiently absorb energy during periods of oversupply and release it during peak demand.

This measure is expected to directly contribute to:

  • reducing system balancing costs,
  • decreasing curtailment of renewable energy generation,
  • optimizing the cost of redispatching generation units.

The announcement of the tariff reform follows an earlier CRU decision allowing hybrid projects to use a single grid connection point while sharing maximum export capacity. This solution speeds up and reduces the cost of building installations that combine, for example, wind or solar power with energy storage systems.

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