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M-47715906-1
Temporary on-site power solutions –Legal and regulatory requirements
Data Centres Ireland 2019John Dallas – A&L Goodbody
19 November 2019
About ALG
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Jason MilnePartner, Environmental & Planning
+353 1 649 2250
John DallasPartner, Energy, Infrastructure & Natural Resources
+353 1 649 2937
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ALG Data Centres team
Paul DigginPartner, Commercial Property
+353 1 649 2258
Conor OwensPartner, Construction
+353 1 649 2084
Claire MorrisseyPartner, Commercial & Technology
+353 1 649 2246
Context
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1
Growth in electricity demand in the greater Dublin area
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Limited grid capacity = network constraint in certain areas
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Delays in securing firm import capacity
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Semi-permanent on-site power solutions “plugging the gap”
Electricity Regulation (principally Electricity Regulation Act, 1999)1
Electricity Generation as a Regulated Activity
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Planning and Development Acts 2000 - 20192
Environmental Law (e.g. Industrial Emissions Regulations)3
What do I need?
▪ Commission for Regulation of Utilities (Capacity > 1MW)
> Authorisation to Construct a Generating Station (S.16 1999 Act)
> Licence to Generate Electricity (s.14(1)(a) 1999 Act)
▪ Planning Permission
▪ Medium Combustion Plant Registration / Industrial Emissions Licence from EPA
▪ Greenhouse Gas Emissions Permit from EPA
▪ Gas Connection and Gas Supply
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Time Periods
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Permit Time Period
CRU Authorisation to Construct 14 Weeks (CRU Guidance). No statutory period.
CRU Licence to Generate 14 Weeks (CRU Guidance). No statutory period.
Planning Permission 12 Weeks + (depends on further information requirements,
appeals etc.)
IE Licence 7 months (but likely to be longer in practice, e.g. further
information requests, oral hearing etc.)
Medium Combustion Plant Registration 1 month
Greenhouse Gas Emissions Permit 3 – 6 months. No statutory period.
Gas Connection Offer 12 – 16 weeks for a quotation for large industrial users. But
depends on complexity and capacity available in the area etc.
Consequences of operating without permits
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Permit Consequence Enforcement Body
CRU Authorisation
to Construct
Fine ≤ £100,000 (€126,973.80). CRU
CRU Licence to
Generate
Fine of ≤ €1,904 or up to 12 months imprisonment or both.
Potential sanctions against directors / officers of the company where the offence
was committed with consent or connivance of the individual or as a result of
their neglect.
CRU
Planning
Permission
Enforcement action under P&D Acts for construction / operation of
unauthorized development.
Local Authority
Third Parties
through the Courts
IE Licence Fine of up to €5,000 on summary conviction and €10 million per offence on
indictment.
EPA
Medium
Combustion Plant
Registration
Fine of up to €5,000 or 12 months in prison or both on summary conviction. On
indictment €500,000 or 3 years imprisonment or both.
EPA
Greenhouse Gas
Emissions Permit
Fine of up to €4,000 or 12 months in prison or both. €15m or 10 years
imprisonment, or both, for an indictable offence. €1,000 per day fine for
summary offence or €130,000 per day fine for indicatable offence where
emissions continue without a permit.
EPA
Licence / Permit Conditions and Obligations
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Condition Type
Time Periods • Planning Permission – time limit on operation of ‘temporary plant’.
• CRU Licences – 5 years to construct. Effectively 30 year permit to
operate subject to compliance with licence terms.
Operating Constraints • PP: Noise emissions at noise sensitive receptors.
• Other construction and operating conditions specific to the permission.
Change of Control • CRU licences may include change of control provisions, restrictions on
assignment of CRU licences and restrictions on transfer of the
generating business.
Information Obligations • Obligation to provide information / reports to the CRU (obligations are
more limited for < 10MW generating plant).
Emissions Monitoring /
Reporting & Verification
• Monitoring, reporting & verification obligations under greenhouse gas
emissions permit, IE licence and medium combustion plant regulations.
On-site generation ‘as a service’
▪ Recognised from a regulatory perspective
▪ CRU Licence to Supply Electricity (s.14(1)(b) 1999 Act)
▪ ‘Turn-key’ model – service provider will need to procure and comply with the permits and registration obligations
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Thank you