Guidance Notes for Applying for a Licence to Generate Electricity
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- Jemimah Lee
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1 An Coimisiún um Rialáil Fóntas Commission for Regulation of Utilities Guidance Notes for Applying for a Licence to Generate Electricity Information Paper Reference: Date Published: January
2 Table of Contents Introduction... 2 Application Validity CRU Acceptance/Rejection Criteria... 4 CRU Assessment and Applicant Updates... 4 Additional Information Requests... 5 CRU Decision Making process... 6 Terms and Conditions of a Generation Licence... 6 When should I apply?... 6 How long will it take to consider my application?... 6 Format of Submission and application Fee... 7 Confidentiality of information submitted... 8 Further information on the Irish electricity market... 9
3 Introduction These guidance notes are to assist applicants in applying for a Licence to Generate Electricity. They should be read in conjunction with the Commission for Regulation of Utilities (CRU) application form that is applicable to the project. 1.1 Legislative Background Grant/Refuse Authorisations and Licences The Electricity Regulation Act, 1999 as amended (the Act) gives CRU the necessary powers to licence and regulate the generation, distribution, transmission and supply of electricity in Ireland. One of the functions of CRU under the Act is to grant or refuse Licences to Generate Electricity (a Licence) following assessment of an associated application. All electricity generators must hold a Licence under the Act. It is an offence to generate electricity prior to obtaining a Licence from CRU. On conviction, a person may be liable to a fine up to 1,904, imprisonment for a term not exceeding 12 months, or both. Authorisations to construct or reconstruct generating stations (Authorisations) are also issued by CRU and separate Authorisation Guidance Notes are available at Joint application forms are used for both Authorisations and Licences Environmental Assessment The European Union (EU) (Birds and Natural Habitats) Regulations 2011 (S.I. 477 of 2011) (as amended) implement the EU Habitats Directive (92/43/EEC) and EU Birds Directive (2009/147/EC). Under the European Union (EU) (Birds and Natural Habitats) Regulations 2011 (as amended) the CRU is defined as a public authority. Regulation 42 of the EU (Birds and Natural Habitats) Regulations 2011 (as amended) outlines the obligations on public authorities in relation to Appropriate Assessment (AA). All projects seeking an Authorisation to Construct or Reconstruct and/or a Licence to Generate in order to generate electricity are required to undergo AA screening and/or AA. 2
4 1.2 Exemption for <1MW Generating Stations If a proposed generating station has an installed capacity of less than or equal to 1MW then applicants are exempted from the need to apply to CRU for a Licence. Such generating stations stand licensed pursuant to S.I 384 of S.I. No. 384/2008 Electricity Regulation Act 1999 (Section 14 (1A)) Order
5 Application Validity CRU Acceptance/Rejection Criteria CRU has developed application forms and guidance documents to assist applicants in developing a valid application. The relevant application forms and guidance documents are available at On receipt of an application, the CRU assessment team will carry out a Completeness Check to confirm that the application is valid. Should CRU receive an invalid application i.e. missing documentation or an incomplete application form, it will inform the applicant in writing that their application is incomplete and will not be processed. A written list of the incomplete sections will be provided to support the applicant s development of a new and valid application. To avoid the potential for submission of an invalid application, new applicants are encouraged to contact CRU via licensing@cru.ie to request a pre submission meeting. At this pre submission meeting, CRU will set out the application and assessment process and answer any questions the applicant may have. Additionally, the CRU completeness check template is provided in Appendix 1 to assist applicants in developing valid applications.applicants should note that updating their application mid assessment will delay the CRU assessment process and may necessitate a full reassessment. It may also invalidate the original application and result in the requirement for a full new application. The decision to require a new application or recommence an assessment will be made on a case by case basis and is fully at the discretion of CRU. CRU Assessment and Applicant Updates Once the application has passed the Completeness Check, the applicant will be notified that the assessment has formally commenced. A CRU application reference number will be assigned for assessment and this should be used in all correspondence with CRU. The assessment will cover the following disciplines: (a) Administrative; (b) Technical; (c) Environmental; and (d) Financial. 4
6 To keep applicants aware of assessment progress, fortnightly Assessment Progress Reports will be issued by CRU for the duration of the assessment. An Assessment Progress Report template is provided in Appendix 2. Should an applicant require information that is not contained in the Assessment Progress Report, they may submit a request for information to CRU by via licensing@cru.ie. During the assessment, CRU may require Additional Information from the applicant to support their application, or to clarify information already submitted. These requests will be issued within the Assessment Progress Report. Where matters arise that have the potential to result in a refusal of an application, the applicant will be informed at the earliest opportunity to afford them the time to address the matter through the submission of Additional Information. Additional Information Requests As outlined above, CRU may require Additional Information from the applicant to progress the application, or to clarify information already submitted. Examples of Additional Information that may be requested include: Environmental - Specific chapters of the Environmental Impact Assessment Report (EIAR), Environmental Impact Statement (EIS) or Environmental Report (ER) that are relevant too and may help to inform the Appropriate Assessment; - Post-approval documentation that has been supplied to the planning authority that might include but is not limited to habitat restoration plans/management plans, species protection plans or other planning compliance documentation relating to ecology; and - Copies of correspondence/consultation with relevant authorities such as NPWS, IFI or local authority Biodiversity Officer. 5
7 CRU Decision Making process If CRU determines a Licence should be granted, the applicant will be issued with a soft and hard copy of the signed Licence. If CRU decides to refuse a Licence application, the applicant will be notified in writing of the reasons for the refusal and will be informed of the appeals process as per Part IV, Sections 29 to 32 of the 1999 Act. Please note that the appeals process is external to CRU procedure. In granting a Licence, the CRU is not endorsing the plans of a generating station and it cannot be relied upon as an indication of the likely commercial success or otherwise of its holder. Terms and Conditions of a Generation Licence A Licence is valid for a minimum of 30 years, subject to the Licence holder complying with the terms and conditions of the Licence. This 30 year period includes a 15 year initial term and the potential for CRU to issue a 15 year notice of termination of the Licence. CRU may revoke a Licence if the holder fails to comply with the terms and conditions. The revocation terms of the Licence are detailed in Schedule 2 of the Licence. Details of other terms and conditions of a generation Licence can be found in the Licence. When should I apply? Applicants can apply as soon as they have all the CRU required information. Where a joint application for and Authorisation and a Licence is not submitted, applicants must hold an Authorisation from CRU prior to submitting their Licence application. How long will it take to consider my application? CRU aims to meet the following application assessment timelines: Assessment steps Acknowledge receipt of application Timeline Within 1 week of receiving application 6
8 Completeness Check Assessment CRU final decision making process Within 2 weeks of receiving application Up to 16 weeks* 2 weeks following completion of assessment *The assessment timelines are dependent on a number of factors, including: 1. Applicant response times to Additional Information requests; and 2. The location and ecological sensitivities 2 in the vicinity of the proposed generating station. Format of Submission and application Fee A checklist of all documents applicants should enclose with the completed application form can be found in Appendix 1. The application form also details these required documents. All documentation should be submitted electronically to licensing@cru.ie. Files that are too large to be submitted by should be submitted by CD to: Commission for Regulation of Utilities Generation Licensing Section The Grain House The Exchange Belgard Square North Tallaght Dublin 24 D24 PXW0 2 With reference to the Appropriate Assessment process 7
9 The application fee must be paid at time of submission of the application. Payment will only be accepted by Electronic Funds Transfer (EFT). The CRU bank details are: IBAN: IE91AIBK BIC: AIBKIE2D The application fees involved are banded according to the proposed installed capacity of the proposed generating station. The fees are set out below. Installed Capacity 1MW to < 5MW 35 5MW to <15MW 55 15MW to < 40MW MW to < 50MW MW to < 100MW MW to < 200MW 1, MW to < 500MW 3, MW and greater 3,980 Installed capacity refers to the normal full load MW capacity of the generation unit (or the sum of the normal full load MW capacities of all generation units associated with the application) as stated on the generation unit nameplate(s). For the avoidance of doubt, the installed capacity is to include the MW consumed by generation unit auxiliary plant directly supplied from the generation unit terminals and other site load directly supplied by the generation unit(s) prior to connection with the transmission and/or distribution systems. Confidentiality of information submitted Information provided in an application form and supporting documents will be covered by Section 13 (Prohibition on unauthorised disclosure of information) of the Act. However, CRU and the information we hold is covered by the Freedom of Information Act, 1997 and legislation on the European Communities (Access to Information on the Environment) Regulations 2007 to 2014 (AIE Regulations). Details of the information we will publish can be seen on the CRU website. 8
10 Further information on the Irish electricity market There are a number of websites that can provide applicants with information about developments in the Irish electricity market including: CRU: Regulatory Information: SEMO: Market Information: EirGrid: Connection Matters Gas Networks Ireland: Connection Matters SEAI: Sustainable Energy: DCCAE: REFIT Renewable Subsidies: 9
11 APPENDIX 1: APPLICATION CHECK LISTS GENERATION LICENCE <40MW CRU COMPLETENESS CHECKLIST Date Received: Date of Completeness Check: 1. Application Form Signed and complete application form 2. Application Fee Proof of payment of application fee. The application fee must be paid at the time of submission of the application by EFT. 3. Financial Information Evidence of finance. Where internally funded, proof of available funds from balance sheets is acceptable. For third party finance, a letter of commitment from a financial institution is acceptable, or where shareholders are providing finance the supporting contract documents. Copy of signed and dated letter of offer for REFIT for the proposed generating station. 4. Location of Generating Station Map(s) or marine chart(s) sufficient to identify the location of the proposed generating station. 5. Planning Permission Final grant of planning permission or confirmation of planning exemption from the planning authority. 6. Connection Agreement Proof of connection agreement or proof of application for a connection agreement from the transmission system operator or distribution system operator for the proposed generating station. This must include a reference number and MEC. 7. Technical Information C.V. or equivalent showing the qualifications and experience of the person or company who will operate the proposed generating station. 8. Environmental Information 10
12 APPENDIX 1: APPLICATION CHECK LISTS All Appropriate Assessment (AA) related documentation provided in support of the application. This includes: Up-to-date information in support of AA Screening and/or AA for all elements of the application to CRU that provides a robust scientific assessment of the potential impacts of the proposed project, both alone and in-combination with other plans, projects and land use changes. This might include an AA Screening Report and Natura Impact Statement (NIS) and all associated figures and appendices. Where applicable, all information relevant to the AA process supplied to the planning authority in response to any requests for further information/clarifications at the planning and/or planning appeal stage (including any addendums to AA Screening and NIS). All of the above should be provided as a single pdf, inclusive of all figures and appendices and should be clearly labelled. Where the AA documentation has cross referenced to information outlined in an Environmental Impact Assessment Report (EIAR)/Environmental Impact Statement (EIS) or Environmental Report (ER) prepared for the proposed project, a copy of this information must be provided, including all associated figures and appendices. This usually includes but is not limited to the Flora & Fauna (Biodiversity), Water/Hydrology and Soils chapters of EIARs/EISs/ERs. All of the above should be provided as a single pdf, inclusive of all figures and appendices and should be clearly labelled. The submission of additional information may be requested by CRU at any stage of the assessment process. 11
13 APPENDIX 1: APPLICATION CHECK LISTS GENERATION LICENCE >40MW DOCUMENT CRU CHECKLIST COMPLETENESS CHECK Date Received: Date of Completeness Check: 1. Application Form Signed and complete application form. 2. Application Fee Proof of payment of application fee. The application fee must be paid at the time of submission the application by EFT. 3. Financial Information Statements of the accounts for the last two years kept by the applicant in respect of relevant undertakings carried on by the applicant, showing the financial state of affairs of that undertaking and its profit or loss, together with copies of the latest audited accounts If more than three months have elapsed since the end of the accounting year covered by the accounts submitted, a certificate from the applicant stating no material adverse change has occurred. Where the applicant is a special purpose vehicle, a statement or relevant parent company accounts and guarantees. Copy of signed and dated offer of REFIT for the proposed generating station. An outline statement of the proposals for the business of the applicant to which the application relate, for the next five years, including; Annual forecasts of costs, sales and revenues and project financing, stating the assumptions underlying the figures provided. Details of any expected subsequent substantial capital outflows, including major decommissioning costs Estimates of net annual cash flows for subsequent periods sufficient to demonstrate the financial security and feasibility of the project(s) to which the application relates Information on the intended source of finance and (were relevant) confirmation from the relevant lender(s). 12
14 APPENDIX 1: APPLICATION CHECK LISTS 4. Location of generating station(s) Map(s) or marine chart(s) sufficient to identify the location of all generating stations to which the application relates. 5. Planning Permission Final grant of planning permission or confirmation of planning exemption from planning authority. 6. Connection agreement offer Proof of connection agreement or application for a connection agreement from the transmission system operator or distribution system operator for the proposed generating station. This must include a reference number and MEC. 7. Environmental Information All Appropriate Assessment (AA) related documentation provided in support of the application. This includes: Up-to-date information in support of AA Screening and/or AA for all elements of the application to CRU that provides a robust scientific assessment of the potential impacts of the proposed project, both alone and in-combination with other plans, projects and land use changes. This might include an AA Screening Report and Natura Impact Statement (NIS) and all associated figures and appendices. Where applicable, all information relevant to the AA process supplied to the planning authority in response to any requests for further information/clarifications at the planning and/or planning appeal stage (including any addendums to AA Screening and NIS). All of the above should be provided as a single pdf, inclusive of all figures and appendices and should be clearly labelled. Where the AA documentation has cross referenced to information outlined in an Environmental Impact Assessment Report (EIAR)/Environmental Impact Statement (EIS) or Environmental Report (ER) prepared for the proposed project, a copy of this information must be provided, including all associated figures and appendices. This usually includes but is not limited to the Flora & Fauna (Biodiversity), Water/Hydrology and Soils chapters of EIARs/EISs/ERs. All of the above should be provided as a single pdf, inclusive of all figures and appendices and should be clearly labelled. 13
15 APPENDIX 1: APPLICATION CHECK LISTS 8. Technical Information C.V. or company profile showing the qualifications and experience of the person or company who will operate the proposed generating station 9. Construction Timeline Construction and commissioning programme, identifying the major milestones in the project development, from authorisation to completion. The submission of additional documents may be requested by CRU at any stage of the assessment process. Note All applicants are advised that in order to trade in the market, in addition to holding the necessary Licences from the CRU, accession to the Trading and Settlement Code is required. Applications for market accession are to be made to the Single Electricity Market Operator (SEM-O) once the relevant Licences from the CRU have issued. To facilitate timely accession to the market, applications should be made as early as possible. Please contact the SEM-O Market Registration team at or by telephone at for information on this process. 14
16 APPENDIX 2: ASSESSMENT PROGRESS REPORTS GENERATION LICENCE ASSESSMENT PROGRESS REPORT CRU APPLICATION REFERENCE: GENERATING STATION NAME: DATE RECEIVED: ASSESSMENT AREA PROGRESS REPORTS Assessment Area Progress Report Additional Information request Administrative e.g. in process e.g. Technical e.g. complete Environmental e.g. in process e.g. please provide an updated cumulative impact assessment that assesses the impact of the proposed project other land use types and plans/projects. Financial e.g. in process Response to all Additional Information requests must be made electronically to Please note that a delay in responding to Additional Information requests may result in a delay to the overall assessment timeline. Applicants must insert the CRU application reference number into the subject line on all correspondence. 15
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