The government has approved a new 'Private Wires' policy which aims to "unlock" private sector investment in electricity infrastructure.

Minister for Climate, Energy and the Environment Darragh O'Brien said that the new policy will unlock private sector investment in electricity infrastructure, particularly renewable generation and storage.

It will also facilitate the provision of low-cost charging solutions for electric vehicles and expand opportunities for self-supply of electricity.

At present, only ESB Networks can own a line that brings electricity from a generator to an electricity customer.

Following 128 responses from industry stakeholders as part of a consultation process, the government has now decided that, in future, private investors will be able to build and own such line in the following circumstances:

A direct connection between a generator, for example a wind farm or solar farm, and an electricity customer, perhaps a factory that wants to decarbonise. There are situations where this is quicker and more efficient than having both parties connect to the grid;
A wind farm or solar farm owned by one company will be able to share a grid connection with another generator or a battery installation owned by another firm. Previously this could have breached the rules prohibiting private lines;
Private lines will be allowed where they are the solution to allow on street charging of electric vehicles;
To allow a firm that self-supplies electricity to provide electricity to a neighbouring customer where the line does not have to cross land owned by a third party.

Minister O’Brien said the new policy represents "a very significant reform of the rules on electricity infrastructure".

He added that attention will now focus on the next steps, to implement the policy. Firstly, primary legislation, to amend the Electricity Regulation Act allowing for Private Wires, will be enacted.

Minister O'Brien will bring the general scheme of this legislation to government in the autumn.

"Supporting regulations – to define standards and processes for granting permission for Private Wires – will be adopted.

"I will also ensure that the Commission for Regulation of Utilities (CRU) is resourced – to take on this significant new area of regulation," the minister said.

In July 2024, the government approved a set of guiding principles for the development of the final Private Wires policy.

The statement on guiding principles sets out that the new Private Wires Policy will aim to unlock private sector resources to build new electricity infrastructure, by expanding the right of private undertakings to connect supply directly with demand.

The guiding principles state that the national electricity grid is "a crucial piece" of national infrastructure and will remain in public ownership.

The national grid will remain the preferred way to connect generators and customers of electricity. Where grid-based solutions are available these will be preferred to Private Wires.

Private Wires will have to be developed with the consent of local communities and landowners and must be built to the same technical and safety standards as the national grid.

Developers of private wires will not have wayleave or other powers to use land.