CRU strengthens regulatory framework for energy storage to support Ireland’s energy transition
New measures enable energy storage units to actively participate in electricity markets and optimise operation. Updated network charging arrangements remove barriers and create a level playing field with generators. Reforms will support better use of networks, increased renewable integration and provide downward pressure on electricity costs
The Commission for Regulation of Utilities (CRU) has published its decision on Interim Transmission Network Charges for Energy Storage that will further strengthen the regulatory framework supporting new technologies in the energy storage space. This decision replaces the previous approach introduced in 2020 and introduces network charges consistent with those applied to generators.
Under the revised arrangements, Energy Storage Units (ESUs) will be subject to Generation Transmission Use of System (TUoS) charges, rather than Distribution Use of System (DUoS) charges. This change is designed to remove disincentives to wholesale market participation and ensure a level playing field for energy storage across the Single Electricity Market (SEM).
The CRU has announced a series of measures over the past year to modernise the regulatory framework for energy storage, reflecting the evolving technological and operational needs of Ireland’s energy system.
Central to these updates is the enhancement of arrangements within the SEM, enabling energy storage units to participate more actively in both intraday and day-ahead markets. These changes were delivered through updates to the SEM Trading and Settlement Code approved in December 2024. These reforms have allowed energy storage operators to respond efficiently to market signals to participate more effectively in energy trading.
In parallel, the CRU is progressing the development of a procurement framework for Long Duration Energy Storage (LDES), which will play an important role in supporting system flexibility and security of supply as Ireland continues its transition to a low-carbon energy system.
The CRU considers that these combined measures will deliver important benefits across the electricity system. In particular, they are expected to place downward pressure on electricity prices, improve the utilisation of existing network assets, and enable greater integration of indigenous renewable energy.
These outcomes align with the objectives set out in the CRU’s National Energy Demand Strategy, published in 2024, and support the work of the Government’s National Energy Affordability Task Force.
A copy of the final decision can be found here.
Commenting on the decision, CRU Chairperson Fergal Mulligan said: “These changes mark an important step in ensuring that energy storage technologies can participate fully in electricity markets and operate in a way that reflects modern system needs. This Decision provides critical updates to market participants, facilitates wholesale market participation and ensures a level playing field for energy storage units across the Single Electricity Market. These reforms will support a more efficient electricity system by enabling better use of existing assets and facilitating increased renewable generation, while helping to reduce costs for consumers over time.”
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