CRU Decision Paper Published on Large Energy Users Connection Policy

Background

On 12 December 2025, the Commission for Regulation of Utilities (“CRU”) published its long-awaited decision paper on Large Energy Users (LEU) connection policy (CRU/2025236) (the “Decision”).

The Decision sets out the policy for Data Centres (“DCs”) seeking to connect to the Irish electricity network. We have summarised the main points and requirements in the Decision which will be of interest to both DC and energy project developers.

A full copy of the Decision can be found here.

Who does the Decision apply to?

The policy applies exclusively to all DCs seeking to connect to the Irish electricity network. DCs applications received prior to the publication of the Decision and which are currently being processed will continue to be processed under CRU/21/124. The CRU also describes in detail how the new policy will apply to existing DCs seeking to increase their Maximum Import Capacity (“MIC”).

Size Matters

The Decision differentiates between three demand size DC categories with varying levels of requirements as you increase demand size. The CRU is clear in the Decision that attempts at ‘project splitting’ to fit a larger project into a smaller category will not be allowed. 

Maximum Import Capacity	Requirements
De-minimis level	Set at 1 Mega Volt-Ampere (“MVA”): Projects below this threshold are exempt from major requirements but location constraints still apply.
MVA and <10 MVA	Must provide onsite generation registered as an auto producer which participates in the wholesale market. Renewable energy requirement applies (see below).
10 MVA	Must provide dispatchable onsite or proximate generation and/or storage matching MIC (de-rated), separately connected and metered, and participate in the wholesale market. Renewable energy requirement applies (see below). The connection cannot be operational or ramp up to its full MIC without achieving delivery of associated onsite or proximate generation and/or storage.

 

A shared configuration approach (i.e. single large proximate generator and/or storage assigning a portion of its capacity (de-rated) to a number of smaller DCs) could be an acceptable approach but would need to be considered by the System Operators (“SOs”) on a case-by-case basis and subject to locational considerations.

Renewable Energy Requirement

The most notable inclusion in the Decision is the renewable energy requirement. DCs above 1 MVA (i.e. the De Minimus) must meet at least 80% of annual demand with additional renewable electricity generated in Ireland, with a six-year glide path to compliance. This had previously been mooted but was not a feature of the Proposed Decision published in early 2025.

What this means practically according to the CRU is that ‘as part of their grid connection application, applicants will be required to demonstrate a credible plan (e.g. would identify the specific renewable generation that will support the projects and the anticipated timeline for development) in relation to how they intend to meet renewable electricity requirement’. The CRU highlight that this could be demonstrated for example by “(e.g. through CPPAs with wind, solar etc, or through direct development of renewable energy projects).” We would envisage CPPAs will be the main contributor, having been a feature of the market for some time already, with many renewable projects having been banked with these offtakes.

Size of renewable assets required vs DC demand

As to the relevant size of the renewable asset required to meet this requirement, the CRU has set out an illustrative example in the Decision which is helpful. However, it does not account for dispatch down, oversupply or other limiting scenarios on production, which we assume will need to be explained to the SOs and considered in each instance. The CRU also provides guidance as to what they deem as ‘additional’ renewable electricity.

Performance and Availability

The CRU in the Decision provides of an overarching comment that ‘the energy assets required under this policy should have to meet the same performance and availability requirements as any other equivalent unit in the system’. They go onto say that if ‘delivery, performance and availability of the required energy services falls below this minimum expected reliability or provision of available capacity to the system, the SOs will have the ability to reduce the MIC of the related data centres demand connection and/or move it to non-firm status. This should be set out by the SOs within the contractual arrangements.’ Given this appears to apply to the dispatchable and intermittent/renewable generation assets, it will bear some consideration in contractual arrangements between DC developers and those selling the power / developing the renewable assets.

Location, Location, Location

Whether the DC connection and generation assets are located in a constrained or unconstrained location of the electricity network will be taken into account by SOs and the CRU are clear in stating that “it is within the SOs remit to determine whether a connection can or cannot be accommodated based on their assessment of each application”.

Unsurprisingly, the greater Dublin region is specifically mentioned  but the Decision also calls out Galway, Limerick, Cork, and Waterford as other areas where envisaged DC demand could exacerbate constraint levels.

The CRU also mandates the SOs to publish regular up to date locational capacity and constraint information (existing and outlook). The SOs are to provide initial proposals to the CRU in relation to these requirements, including how to capture interaction between the transmission and distribution systems, by 31 March 2026. This will be a valuable tool for DC developers to assess opportunities and is welcomed.

Final Comments

Media and industry commentary seems generally favorable to the Decision. This follows widespread criticism of the Proposed Decision early in 2025.

The Decision provides clarity after years of uncertainty, enabling DC developers to invest in Ireland’s Data Centre industry, which has suffered somewhat absent clear policy. However, the Decision is just a first step and how these policy requirements are reflected in connection documentation issued by the SOs will be critical. The SOs must develop and publish a standardised engagement and connection process for DC applicants by 31 March 2026  and industry participants will be watching keenly to ensure these timelines are adhered to.

Regardless of the Decision, the number one requirement for the proliferation of DCs and energy generation is the buildout and modernisation of the Irish grid. Given the Irish government’s decision to earmark €14 billion over the next five years to this aim (more than ever before), it does appear that we are moving in the right direction on both fronts.

For further discussion on any items in this article please reach out to any member of the Eversheds Sutherland (Ireland) Data Centre team - Seán Scally, Chelsey O’Doherty, Pranav Nanda, Cal Lynn, Ciara O’Keefe, Marie O’Riordan and Kim O’Neill.