UK and Ireland strengthen energy cooperation with new agreements

Energy and infrastructure expert Garrett Monaghan of Pinsent Masons said: “Although MoUs are not binding documents as such, they are not – and should not be – entered into lightly; these MoUs are significant with each country recognising and planning for current and emerging realities in their respective energy markets.”

He added: “From an Irish perspective, the commitment to cooperation on the development of offshore wind, hydrogen and new transmission infrastructure align very well to the considerable progress Ireland has made in policy certainty in those areas in the past two years. Significantly, both countries have made a firm statement on including gas – not just power – in the MoUs. As to significance for UK energy policy, there is clear overlap and common themes with the EU’s REPowerEU package including routes to market for hydrogen and commitment to capital investment in new offshore transmission grids.”

The first MoU, ‘Cooperation in the Energy Transition, Offshore Renewables and Electricity Interconnection‘, sets out both countries’ commitment to jointly advance the offshore and onshore renewable energy sectors – in particular the development of ‘offshore hybrid assets’ and the production of hydrogen from renewable sources.

The second MoU, ‘Cooperation for Natural Gas Security of Supply’, addresses the critical issue of gas supply security. “Given Ireland's reliance on the UK for natural gas, especially as indigenous gas reserves decline, both countries are keen to establish a robust framework for gas supply security,” Monaghan said.

In the MoUs, Ireland signals the planned expansion of its interconnection capacity. Currently standing at 500MW through a single connection to the UK market, Ireland aims to more than triple its capacity to 1,700 MW by 2027. This expansion will include the Celtic Interconnector, which is currently under construction and which will reestablish direct interconnection between Ireland and the EU.

Under the terms of both MOUs, the UK and Ireland will hold bi-annual meetings, with their respective ministers periodically convening to assess progress and discuss challenges. A joint working group will also convene frequently to ensure the smooth execution of the agreements. The responsibility for implementing these MoUs falls on the Department of the Environment, Climate and Communications in Ireland, and the UK’s Department for Energy Security and Net Zero.