Greenlink Interconnector has welcomed the publication of a consultation by the Commission for the Regulation of Utilities (CRU) in Ireland that outlines that the latter is minded to grant a new cap and floor regulatory regime for Greenlink.
The eight-week consultation was launched on 26 March and the CRU plans to publish its draft determination in the third quarter of 2020.
The determination will set out the precise details of the cap and floor regime, a system of support that limits market exposure for consumers whilst facilitating the efficient financing of the project.
Greenlink chief executive Nigel Beresford (pictured) said: “We welcome the CRU’s announcement on a new regulatory regime to support the Greenlink interconnector in Ireland.
“It creates a positive environment for continued private capital financing of this critical energy infrastructure project and its delivery.
“The proposed regime will support the Irish government in meeting its energy policy objectives – on energy security, decarbonisation and investment in renewable energy like offshore wind – whilst also protecting the consumer by driving down costs.
“We look forward to engaging further with the CRU in relation to the detailed implementation of the cap and floor in Ireland.”
The CRU consultation follows its determination in October 2018 that the construction and operation of the interconnector was in the public interest.
The implementation of a cap and floor regulatory regime in Ireland would mirror the regulatory arrangements for interconnectors in the UK through Ofgem, Greenlink said.
The consultation closes on 21 May and details on how to submit comments can be found here.
Greenlink said procurement for the main construction contracts is currently underway and agreements have been signed for connecting to the grid in Ireland and Wales, with EirGrid and National Grid respectively.
Marine planning applications have been submitted and applications for onshore works in Wales and Ireland are being prepared.
The project is expected to take three-years to construct before commissioning in 2023.