3 Environment Energy Policy

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    1.0Lecture 3 – Environment and Energy Policy

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    1.1 Global Context

    • Sources include wind, solar, hydro, tidal, aero/hydro/geothermal, and biomass/biofuel

    (organic material, e.g. trees, plants, and agricultural and urban waste)• Investment in subsidizing technologies as opposed to research

    • Worldwide global renewable capacity in !"# was ",$%! &W

    • 'p over from previous year 

    • *ydro+ ",!!! &W () and others $%! &W ("-)

    • In !"# ' enewables accounted for largest proportion (-) of new electric

    generation capacity for si0th year running.

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    1.2 Wind v Solar

    • Wind

    o

     1uisance and environmental issue with windo Wind technology is running up against the laws of physics

    • Solar 

    o 2hermal ("!) and photovoltaic (3!)

    o &etting cheaper,

    o of global electricity supply by !!

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    1.3 Storage i a !ey c"allenge

    • enewables not necessarily available at demand times (e.g solar a night)

    &eneration capacity is held in reserve to meet pea4 demand• fficient storage address these problems

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    1.# E$ Context

    • enewables lower '5s dependence on imported fossil fuels

    enewables improve environmental impact, sustainability, security and economy (costsand 6obs)

    • 7irective !!3//8 on the promotion of the use of energy from renewable sources

    • epealed 7irectives !!"/--/8 (renewables) and !!#/#!/8 (bio fuel)

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    1.% &ene'able Energy (irective) *rticle 1+ Sub,ect -atter and Scoe

    92his 7irective establishes a common framewor4 for the promotion of energy from

    renewable sources. It sets mandatory national targets for the overall share of energy fromrenewable sources in gross final consumption of energy and for the share of energy from

    renewable sources in transport.

    It lays down rules relating to statistical transfers between :ember States, 6oint pro6ects

     between :ember States and with third countries, guarantees of origin, administrative

     procedures, information and training, and access to the electricity grid for energy from

    renewable sources. It establishes sustainability criteria for biofuels and bio li;uids.

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    1./ &ene'able Energy (irective) *rticle 2+ ey (einition

    • 9=energy from renewable sources5 means energy from renewable non>fossil sources,

    namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy,hydropower, biomass, landfill gas, sewage treatment plant gas and biogases<

    • 9=biomass5 means the biodegradable fraction of products, waste and residues from

     biological origin from agriculture (including vegetal and animal substances), forestry and

    related industries including fisheries and a;uaculture, as well as the biodegradable

    fraction of industrial and municipal waste?

    • 9=bio li;uids5 means li;uid fuel for energy purposes other than for transport, including

    electricity and heating and cooling, produced from biomass<

    • 9=biofuels5 means li;uid or gaseous fuel for transport produced from biomass<

    • 95guarantee of origin5 means an electronic document which has the sole function of

     providing proof to a final customer that a given share or ;uantity of energy was producedfrom renewable sources @

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    1. &ene'able Energy (irective+ !ey ob,ective target

    • stablishes an overall policy for the production and promotion of energy from renewable

    sources in the '.• It re;uires the ' to fulfill at least ! of its total energy needs with renewables by !!

     A to be achieved through the attainment of individual national targets.

    • Bll ' countries must also ensure that at least "! of their transport fuels come from

    renewable sources by !!.

    • Specifies national renewable energy targets for each country, ta4ing into account its

    starting point and overall potential for renewables. 2hese targets range from a low of "!

    in :alta to a high of 3 in Sweden ("% for Ireland).

    • ' countries set out how they plan to meet these targets and the general course of their

    renewable energy policy in national renewable energy action plans.

    • Crogress towards national targets is measured every two years when ' countries publishnational renewable energy progress reports.

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    1.4 &ene'able Energy (irective+ *rticle 3

    • :andatory national overall targets and measures for the use of energy from renewable

    sources• 9ach :ember State shall ensure that the share of energy from renewable sources,

    calculated in accordance with Brticles $ to "" Dincludes co>operation methodsE, in gross

    final consumption of energy in !! is at least its national overall target for the share of

    energy from renewable sources in that year, as set out in the third column of the table in

     part B of Bnne0 I DIreland "%E. Such mandatory national overall targets are consistent

    with a target of at least a ! share of energy from renewable sources in the

    8ommunity5s gross final consumption of energy in !!. In order to achieve the targets

    laid down in this Brticle more easily, each :ember State shall promote and encourage

    energy efficiency and energy saving.

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    1.5 &ene'able Energy (irective+ 6ational &ene'able Energy *ction

    Plan

    • Bll ' countries have adopted national renewable energy action plans

    • 2hese show what actions they intend to ta4e to meet their renewables targets.

    • 2hese plans include sectorial targets for electricity, heating and cooling, and transport?

     planned policy measures? the different mi0 of renewables technologies they e0pect to

    employ? and the planned use of cooperation mechanisms (e.g. Ireland e0porting

    renewable wind energy to 'F post !!).

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    1.10 &ene'able Energy (irective+ *rticle #

    •  1ational renewable energy action plans

    9ach :ember State shall adopt a national renewable energy action plan. 2he nationalrenewable energy action plans shall set out :ember States5 national targets for the share

    of energy from renewable sources consumed in transport, electricity and heating and

    cooling in !!, ta4ing into account the effects of other policy measures relating to

    energy efficiency on final consumption of energy, and ade;uate measures to be ta4en to

    achieve those national overall targets, including cooperation between local, regional and

    national authorities, planned statistical transfers or 6oint pro6ects, national policies to

    develop e0isting biomass resources and mobilize new biomass resources for different

    uses, and the measures to be ta4en to fulfil the re;uirements of Brticles "# to "3.

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    1.12 &ene'able Energy (irective+ Cooeration -ec"anim

    • Hrom article + 9cooperation between local, regional and national authorities, planned

    statistical transfers or 6oint pro6ects<• 7iffering renewable potential throughout out '

    • ivers suitable for hydroelectric power, sunshine suitable for solar.

    • Ireland has one of the best wind energy climates in urope.

    • 2he 7irective promotes cooperation amongst ' countries (and with countries outside

    the ') to help them meet their renewable energy targets.

    • Hor e0ample, Ireland 0porting enewable lectricity (see SBI/781/ir&rid/8

    Study on the iability and 8ost Jenefit Bnalysis for Ireland of (S>))

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    1.13 Cooeration mec"anim+ *rticle /

    • Statistical transfers between :ember States

    In a statistical transfer, an amount of renewable energy is deducted from one countryKs progress towards its target and added to anotherKs.

    • 2his is an accounting procedure and no actual energy changes hands.

    • Incentives transferring nation to produce beyond its target

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    1.1# Cooeration mec"anim+ *rticle 4

    • Goint pro6ects between :ember States

    92wo or more :ember States may cooperate on all types of 6oint pro6ects relating to the production of electricity, heating or cooling from renewable energy sources. 2hat

    cooperation may involve private operators.<

    • 2wo or more ' countries can co>fund a renewable energy pro6ect in electricity or

    heating and cooling, and share the resulting renewable energy for the purpose of meeting

    their targets. 2hese pro6ects can but do not have to involve the physical transfer of energy

    from one country to another.

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    1.1% Cooeration mec"anim+ *rticle 5 10

    • Goint pro6ects between :ember States and third countries

    9Lne or more :ember States may cooperate with one or more third countries on all typesof 6oint pro6ects regarding the production of electricity from renewable energy sources.

    Such cooperation may involve private operators.<

    • ' countries may also enter into 6oint pro6ects with non>' countries. 2he resultant

    energy will count towards national targets if the pro6ect involves+ electricity generation

    and the flow of energy into ' (to ensure real effect on ' nergy consumption)

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    1.1/ Cooeration mec"anim+ *rticle 11 78oint uort c"eme9

    • Brticle defines 9=support scheme5 means any instrument, scheme or mechanism applied

     by a :ember State or a group of :ember States, that promotes the use of energy fromrenewable sources by reducing the cost of that energy, increasing the price at which it can

     be sold, or increasing, by means of a renewable energy obligation or otherwise, the

    volume of such energy purchased. 2his includes, but is not restricted to, investment aid,

    ta0 e0emptions or reductions, ta0 refunds, renewable energy obligation support schemes

    including those using green certificates, and direct price support schemes including feedin

    tariffs and premium payments<

    • 2wo or more ' countries can co>fund a 6oint support scheme to spur renewable energy

     production in one or both of their territories.

    • 2his form of cooperation can involve measures such as a common feed>in tariff, a

    common feed>in premium, or a common ;uota and certificate trading regime.• 9Without pre6udice to the obligations of :ember States under Brticle #, two or more

    :ember States may decide, on a voluntary basis, to 6oin or partly coordinate their

    national support schemes. In such cases, a certain amount of energy from renewable

    sources produced in the territory of one participating :ember State may count towards

    the national overall target of another participating :ember State if the :ember States

    concerned @

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    1.1 &ene'able Energy (irective+ *rticle 13

    • 9:ember States shall ensure that any national rules concerning the authorisation,

    certification and licensing procedures that are applied to plants and associatedtransmission and distribution networ4 infrastructures for the production of electricity,

    heating or cooling from renewable energy sources, and to the process of transformation of 

     biomass into biofuels or other energy products, are proportionate and necessary.<

    • 9administrative procedures are streamlined and e0pedited at the appropriate

    administrative level<

    • 9rules @ are ob6ective, transparent, proportionate, do not discriminate between applicants

    and ta4e fully into account the particularities of individual renewable energy

    technologies<

    • 9simplified and less burdensome authorisation procedures@ are established for smaller

     pro6ects @

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    1.14 &ene'able Energy (irective+ *rticle 1#

    • Information and training+ 9:ember States shall ensure that information on support

    measures is made available to all relevant actors, such as consumers, builders, installers,architects, and suppliers of heating, cooling and electricity e;uipment and systems and of

    vehicles compatible with the use of energy from renewable sources.

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    1.15 &ene'able Energy (irective+ *rticle 1%

    • &uarantees of origin of electricity, heating and cooling produced from renewable energy

    sources• 9Hor the purposes of proving to final customers the share or ;uantity of energy from

    renewable sources in an energy supplier5s energy mi0 @:ember States shall ensure that

    the origin of electricity produced from renewable energy sources can be guaranteed @ in

    accordance with ob6ective, transparent and non>discriminatory criteria.

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    1.20 &ene'able Energy (irective+ Sutainable biouel

    • Jiofuels and bio li;uids are instrumental in helping ' countries meet their "!

    renewables target in transport.• 2he enewable nergy 7irective sets out biofuels sustainability criteria for all biofuels

     produced or consumed in the ' to ensure that they are produced in a sustainable and

    environmentally friendly manner.

    • 8ompanies can show they comply with the sustainability criteria through national

    systems or so>called voluntary schemes recognized by the uropean 8ommission.

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    1.21 &ene'able Energy (irective+ *rticle 1/

    • Bccess to and operation of the grids

    9:ember States shall ta4e the appropriate steps to develop transmission and distributiongrid infrastructure, intelligent networ4s, storage facilities and the electricity system, in

    order to allow the secure operation of the electricity system as it accommodates the

    further development of electricity production from renewable energy sources, including

    interconnection between :ember States and between :ember States and third countries.

    :ember States shall also ta4e appropriate steps to accelerate authorization procedures for

    grid infrastructure and to coordinate approval of grid infrastructure with administrative

    and planning procedures

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    1.22 &ene'able Energy (irective+ *rticle 1

    • Sustainability criteria for biofuels and bioli;uids

    Irrespective of whether the raw materials were cultivated inside or outside the territory ofthe 8ommunity, energy from biofuels and bioli;uids shall be ta4en into account @ only if 

    they fulfill certain sustainability criteria

    • .&.+ the greenhouse gas emission saving from the use of biofuels and bioli;uids shall be

    at least #$ .

    • $! from " Ganuary !"-,

    • %! from " Ganuary !"

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    1.23 &ene'able Energy (irective+ *rticle 114

    • Brticle "+ erification of compliance with the sustainability criteria for biofuels and bio

    li;uids• Brticle "3+ 8alculation of the greenhouse gas impact of biofuels and Jio li;uids

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    1.2# &ene'able Energy (irective+ *rticle 22

    • eporting by the :ember States+

    9ach :ember State shall submit a report to the 8ommission on progress in the promotion and use of energy from renewable sources by #" 7ecember !"", and every

    two years thereafter. 2he si0th report, to be submitted by #" 7ecember !", shall be the

    last report re;uired.

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    1.2% Cae C:%3;12 *land

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    1.2/ Cae C:15%;12 >ndutrie du boi de =

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    1.2 6ational Energy Policy ?b,ective

    • 2he reduction of greenhouse gas emissions to combat climate change.

    eduction of carbon fuel imports, to safeguard security of energy supply.• 2hese ob6ectives re;uire further significant development of our indigenous, renewable

    energy resources.

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    1.24 &E@>A

    • Bdministered by 7epartment of nergy

    HI2 stands for Kenewable nergy Heed in 2ariffK and is the primary means throughwhich electricity from renewable sources is supported in Ireland.

    • Support renewable pro6ects by offering prices reflecting the cost of the specific renewable

    technology

    • HI2 "+ opened at end of !!3? small and large scale onshore wind, biomass landfill

    gas, other biomass and small hydro (N $:W.)

    • HI2 + :arch !"? same but not other biomass

    • HI2 #+ Hebruary !"?other biomass technologies

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    1.25 6ational &ene'able Energy *ction Plan

    • Brticle of 7irective !!3//8 on renewable energy re;uires each :ember State to

    adopt a national renewable energy action plan (1BC) to be submitted to the uropean8ommission.

    • 2he plan is to set out the :ember State5s national targets for the share of energy from

    renewable sources consumed in transport, electricity and heating and cooling in !!,

    demonstrating how the :ember State will meet their overall national target established

    under the 7irective.

    • Ireland submitted its 1ational enewable nergy Bction Clan to the uropean

    8ommission in Guly !"!.

    • Ireland submitted its first report to 8ommission in Ganuary !" and its second report in

    Hebruary !" (see Brticle ).

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    1.30 &ene'able Electricity Policy and (eveloment @rame'or! 

    • 7raft eport published on nd Hebruary !"%

    8onsultation process will close Bpril !"%• 2his framewor4 will guide the development of renewable electricity pro6ects which are

    4ey ob6ectives of Irish energy policy.

    • 2o provide guidance to citizens, industry, Bn Jord Cleanala, and other public authorities,

    for use in con6unction with the Clanning &uidelines on Wind nergy 7evelopment and

    other more general planning guidance

    • e;uires Strategic nvironmental Bssessment (SB) and an Bppropriate Bssessment

    (BB).

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    1.32 ?"ore &ene'able Energy (eveloment Plan 7?&E(P9 –

    =ac!ground

    • 2he potential offshore wind resource in Ireland is large scale and much greater than the

    capacity of our electricity system to absorb it for all for domestic use.

    • Ireland has a landmass of around 3!,!!! s;uare 4ilometres, sea area of around "! times

    that size, at 3!!,!!! s;uare 4ilometres.

    • Ireland5s position at the Btlantic edge of the ' gives an almost unparalleled offshore

    energy resource.

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    1.33 ?&E(P

    • Identifies the opportunity for the sustainable development of Ireland5s abundant offshore

    renewable energy resources for increasing indigenous production of renewable electricity.• Sets out 4ey principles, policy actions and enablers for delivery of Ireland5s significant

     potential in this area.

    • Crovides a framewor4 for the sustainable development of Ireland5s offshore renewable

    energy resources.

    • Ireland also, developing wave and tidal energy potential

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    1.3# Energy W"ite Paer

    • 2itled+ =Ireland5s 2ransition to a Oow 8arbon nergy Huture !"$>!#!5

    Cublished "%/"/!"$• 2he long term development of Ireland5s abundant, diverse and indigenous renewable

    energy resource.

    • enewable energy of 4ey environmental importance and also provides a sustainable,

    economic opportunity for Ireland, both in terms of providing a secure, indigenous, source

    of energy, and as an e0port in the longer term.

    • :ove to a decarbonised energy system, support for renewable energy is vital from both

    an economic and environmental perspective.

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    1.3% -icrogeneration+ ES= Cutomer Suly

    • Lnly one supply company (SJ 8ustomer Supply) is currently offering consumers a

    microgeneration feed>in tariff support scheme• SI !" of !" provides for the refund of B2 paid by farmers on ;ualifying e;uipment,

     purchased from " Ganuary !", for the purposes of microgeneration of electricity for use

    in a farm business.

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    1.3/ -icrogeneration+ SE*>

    • 2he Sustainable nergy Buthority of Ireland5s micro>generation pilot scheme

    2he principal ob6ective to investigate and test technical, mar4et and regulatory issuesassociated with the installation, networ4 connection and operation of small and micro

    scale generation technologies.

    • Bn associated programme ob6ective is to assess measures re;uired for supplier and

     product ;ualification to minimize the ris4 of adverse outcomes at small>scale and micro>

    generation installations, hence promoting the robust growth of a supply base.

    • 2echnologies+ :icro Wind 2urbines, Chotovoltaic, *ydro.

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    1.3 &elie or invetment in rene'able energy generation

    • Section % Hinance Bct "33 provided for a scheme of ta0 relief for corporate investments

    in certain renewable energy pro6ects. 2he Section came into operation as Section %J,28B "33-, with effect from " :arch "333. Since then, the scheme has been periodically

    e0tended.

    • 2he relief applies to corporate e;uity investments in certain renewable energy generation

     pro6ects. 2he relief is given in the form of a deduction from a company5s profits for its

    direct investment in new ordinary shares in a ;ualifying renewable energy company.

    • 2o ;ualify for this relief, the energy pro6ect must be in the solar, wind, hydro or biomass

    technology categories, and must be approved by the :inister for 8ommunications,

    nergy P 1atural esources.

    • 2he relief is capped at the lesser of $! of all capital e0penditure (e0cluding lands), net

    of grants or Q3.$$ million for a single pro6ect. Investment by a company or group iscapped at Q".- million per annum, and unless the shares are held for at least $ years by

    the corporate investor, the relief 9shall< be withdrawn (Section %J (%) (b) refers).

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    1.34 6ational tranoing legilation

    • S.I. "- of !"" > uropean 8ommunities (enewable nergy) egulations !""+

    2ransposes elements of the 7irective including the provisions relating to access to andoperation of the grid? guarantees of origin and the e0emplary role of public bodies

    regarding public buildings.

    • S.I. "$ of !" > S'S2BI1BJO 1&R B82 !! (S82IL1 ())

    (8L1HBO LH B77I2IL1BO H'182IL1S 1WBJO 1&R) L7

    !"

    • 8onferral of additional functions on the Sustainable nergy Buthority of Ireland (SBI).

    2he functions being assigned to SBI relate to re;uirements under the enewable nergy

    7irective !!3//8 concerning renewable energy related information and training?

     promotion and encouragement of renewable energy use by public bodies? and promotion

    of certain renewable technologies.• nergy (Jiofuel Lbligation and :iscellaneous Crovisions) Bct !"!

    • an act to further promote the use of biofuel in the state and for that purpose to provide for

    the increased supply of biofuel in the state by means of a biofuel obligation re;uiring that

    a specified amount of road transport fuel is biofuel?

    • to impose a levy on relevant disposals of biofuel

    • to confer additional functions on the national oil reserves agency to administer the biofuel

    obligation?

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    1.35 ?t"er national meaure

    • Sustainable nergy Buthority of Ireland (SBI) have prepared information to advise

    8onsumers on all of the technical and performance issues related to lectric ehicles.• Cromote &reen Cublic Crocurements (Q"$ billion annual budget)

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    1.#0 Planning exemtion – dometic

    • 92he construction, erection or placing within the curtilage of a house of a wind turbine

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    1.#1 Planning exemtion – civic

    • 92he carrying out by any electricity underta4ing of development consisting of the

    construction or erection of a charging point for electric vehicles.

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    1.#2 Planning exemtion – commercial

    • 92he construction, erection or placing within the curtilage of an industrial building of a

    structure for the purposes of housing a (fully enclosed) 8ombined *eat and Cowersystem.

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    1.#3 Planning exemtion – rural

    • 92he construction, erection or placing within an agricultural holding of a structure for the

     purposes of housing a (fully enclosed) 8ombined *eat and Cower system.voltaic).ground fuel storage

    tan4 or structure.

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    1.## Planning rocee

    • Section #-B of the C7B !!!+ Strategic Infrastructure 7evelopment

    Seventh Schedule development include+• Bn installation for hydroelectric energy production with an output of #!! megawatts or

    more, or where the new or e0tended superficial area of water impounded would be #!

    hectares or more, or where there would be a #! per cent change in the ma0imum,

    minimum or mean flows in the main river channel.

    • Bn installation for the harnessing of wind power for energy production (a wind farm)

    with more than $ turbines or having a total output greater than $! megawatts.

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    1.#% ?t"er national entitie+ EirGrid Ltd.

    • 2he independent electricity 2ransmission System Lperator (2SL) for the epublic of

    Ireland.• 2he 2ransmission System, often referred to as 92he 1ational &rid

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    1.#/ ?t"er national entitie+ ES= 6et'or! Ltd.

    • 7istribution System Lperator 

    B ring fenced subsidiary within SJ &roup• 2he licensed operator of the electricity distribution system in the epublic of Ireland.

    • esponsible for building, operating, maintaining and developing the electricity

    distribution networ4 and serving all electricity customers in the epublic of Ireland.

    • Bs :eter Lperator, it installs, maintains and reads all electricity meters.

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    1.# ?t"er national entitie

    • Sustainable nergy Buthority of Ireland (SBI)

    8ommission for nergy egulation (8)