For years, battery storage in Ireland has been operating under a network charging regime that penalised it for doing exactly what the electricity system needs it to do. That is now set to change, with significant implications for Ireland’s energy transition, electricity prices, and the storage investment pipeline.
In mid-April, the Commission for the Regulation of Utilities (CRU) published a minded-to decision to reform the way battery storage projects are charged for using Ireland’s electricity grid. Energy Storage Ireland (ESI) has strongly welcomed this decision and submitted a formal response encouraging the CRU to proceed with implementation at the earliest possible opportunity.
Here is what the decision means, why it matters, and what needs to happen next.
The Problem: Batteries Were Being Penalised for Doing Their Job
Under the current framework, battery storage projects in Ireland are subject to Demand Transmission Use of System (DTUoS) charges, the same charges that apply to large energy users such as factories and data centres. This means that every time a battery imports electricity from the grid to charge, it is charged at €30 per megawatt-hour.
This might seem like a technical detail, but its consequences are substantial. Batteries charge when electricity is cheap and abundant, typically when wind and solar generation are high. They then discharge when electricity is scarce and expensive, displacing costly gas-fired generation and reducing wholesale prices for consumers. This process, known as load shifting, is precisely what Ireland’s grid needs more of.
But under the current charging regime, each charging cycle incurs a cost. The more a battery operates, the more it is charged, creating a direct financial disincentive to do the very thing it is designed to do. Developers have consistently told ESI that this was one of the primary barriers to investment in new battery projects.
The problem is compounded by an inconsistency within the Single Electricity Market (SEM). Battery projects in Northern Ireland are already charged as generators rather than demand users. This disparity creates an uneven playing field within the same market and distorts investment decisions across the island.
The Solution: Treating Storage as What It Actually Is
The CRU’s minded-to decision proposes removing DTUoS charges for energy storage units and replacing them with Generator Transmission Use of System (GTUoS) charges, on the same basis on which wind farms, solar farms, and other generation assets are charged.
This is not a subsidy or a special favour for the storage industry. It is a correction to a misclassification. Battery storage assets are licensed as generators, registered in electricity markets as generators, and connected to the grid as generators. Charging them as demand users was always an anomaly, one that the CRU itself acknowledged was not fit for purpose.
ESI has been advocating for this reform since 2019 and formally raised it as a key barrier in submissions to the CRU in September 2025. We are therefore strongly supportive of the minded-to decision and have submitted a formal response encouraging the CRU to proceed with implementation for the tariff year starting 1 October 2026.
What the Numbers Say
The case for this reform is not just qualitative, it is backed by independent economic analysis. Research by Economic Consulting Associates (ECA), commissioned by ESI, estimates that removing import-related charges on storage assets in the SEM would:
- Increase the utilisation of storage by approximately 30% on average — meaning batteries will charge and discharge more frequently, providing greater system flexibility and market liquidity.
- Deliver a net consumer saving of approximately €37 million per annum — through lower wholesale electricity prices, reduced constraint costs, and lower carbon costs.
These are not marginal gains. A €37 million annual saving for Irish consumers at a time when Ireland’s electricity prices remain among the highest in Europe is a meaningful and concrete benefit that flows directly from getting the regulatory framework right.
ESI-commissioned research also indicates that this change doubles the internal rate of return for a standard battery project in Ireland. For investors and developers who have been sitting on projects waiting for the commercial case to stack up, this is the signal they have been waiting for.
Why This Reform Matters Beyond the Numbers
The network charging reform matters for reasons that go beyond the immediate financial impact on battery project economics. It will:
- Unlock the development pipeline. Ireland has over 10 GW of storage projects in development. Many of these projects are commercially viable in principle but have been held back by the uncertainty and cost associated with the current charging regime. Removing this barrier creates the conditions for a significant acceleration in storage deployment.
- Enable better use of Ireland’s renewable energy. Every megawatt-hour of wind or solar energy that is wasted because the grid cannot accommodate it or because storage is not operating efficiently enough to absorb it is a megawatt-hour that must be replaced by burning imported gas. More storage, operating more efficiently, means less curtailment, lower emissions, and lower prices.
- Support hybrid and co-located projects. Under the current DTUoS framework, a battery co-located with a wind or solar farm faces import charges in addition to the generator charges already applied to the renewable asset. Switching to GTUoS removes this double-charging and makes the development of hybrid projects significantly more financially attractive, directly supporting ESI’s policy ask on co-location.
- Create a level playing field within the SEM. Aligning the treatment of storage in the Republic of Ireland with that in Northern Ireland removes a competitive distortion within the same electricity market and ensures that investment decisions are driven by genuine economic and system considerations rather than regulatory inconsistency.
- Provide investment certainty. GTUoS charges are capacity-based rather than volumetric, making them more predictable and stable over time. This predictability is critical for long-term project financing and is one of the key factors investors look for when assessing storage projects.
What Needs to Happen Next
ESI strongly supports the CRU proceeding with this decision on the timeline proposed implementation for the tariff year starting 1 October 2026. Clarity and speed of implementation matter enormously. Any delay or ambiguity will have real consequences for project delivery and investor confidence.
At the same time, ESI recognises that this interim decision is a first step rather than a final destination. The mind-to-decision is an important and pragmatic correction to the current framework, but it needs to be followed by work on the enduring network charging framework for storage, one that is fully cost-reflective, transparent, and aligned with the evolving role of storage in Ireland’s electricity system.
In particular, the enduring framework should build on the locational signals that GTUoS introduces, ensuring that storage is deployed where it can deliver the greatest value to the grid and that charging arrangements continue to evolve alongside the broader policy landscape, including the Flexibility Needs Assessment, the Electricity Storage Policy Framework, and the forthcoming LDES procurement process.
Conclusion
The CRU’s minded-to decision on network charging for energy storage is one of the most significant regulatory developments for the Irish storage sector in years. It corrects a longstanding misclassification, removes a genuine barrier to investment, and sets the stage for a significant acceleration in storage deployment.
For consumers, it means lower electricity bills. For developers, it means viable projects. For Ireland’s energy system, this means more renewable energy on the grid, less dependence on fossil fuels, and a more flexible, resilient electricity network.
ESI looks forward to continuing to engage with the CRU on the implementation of this decision and on the development of the enduring framework. Getting network charging right is not the whole answer, but it is an essential part.