CRU unveils plans to increase viability of Irish biomethane projects

Ireland’s Commission for Regulation of Utilities (CRU) has published its updated policy (50-page/993 KB PDF) for connecting biomethane producers and central grid injection (CGI) facilities to the gas network, following a consultation with providers earlier this year.

Under the proposals, connecting parties will continue to pay 30% of connection costs upfront, with those costs being shared on a pro-rata basis between biomethane producers seeking to use CGI facilities.

During construction of new connections, producers will need to provide financial security for costs outside the 30% upfront fee, until such time that 70% of the remaining connections costs have been recovered through network tariffs.

The economic test appraisal period would also be extended from 10 to 15 years, reducing the likelihood of any additional upfront costs being required where the economic requirements for a new connection were not fully met.

Shani Stallard, an energy sector expert with Pinsent Masons in Dublin, said the CRU’s decision represented a clear shift towards a more investable framework for connections.

“By reducing upfront costs and better aligning financial security requirements with actual project risk, the updated policy should help projects demonstrate financial viability - particularly smaller and more remote developments - while also maintaining appropriate protections for gas consumers,” she explained.

“This is a necessary step on the path to achieving our 2030 biomethane target.”

The changes come as Ireland targets 5.7TWh of indigenous biomethane production by 2030.

Ireland’s National Biomethane Strategy, published in 2024, outlined a split between large grid-connected plants, and smaller plants which would use CGI facilities to inject their biogas into the network.

These smaller facilities would open the door to remote or smaller operators being able to sell their gas into the grid, transporting it via road to the CGI plants for injection – such as the Mitchelstown project in County Cork, which is expected to inject as much as 12% of the overall national target once fully operational.

This use of CGI facilities is now formally part of the connections policy, potentially opening up a broader opportunity for providers in remote and rural parts of the country.

“The formal embedding of central grid injection facilities is particularly significant,” said Stallard.

“CGI facilities present a viable route-to-market for smaller and more dispersed projects. Enabling these projects to proceed will be essential for scaling biomethane production in line with national policy ambitions.”