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Connection Charges and Bonds

Connection Charges and Bonds

When a generator or demand customer executes a Connection Agreement with EirGrid a number of forms of security cover will be required and a number of charges will apply to the generator or demand customer under the agreement:

Connection Charges Bond - the connecting demand customer or generator must provide security in the form of a bond in respect of the connection charges set out in the Connection Agreement. It is calculated using the shallow costs of the connection.

Capacity Bond - is required to ensure that only the required capacity has been requested and provided, and that no capacity is being unnecessarily reserved or hoarded.

  • Generator Connection - Maximum Export Capacity (MEC) Bond: A generator Capacity Bond is often referred to as the Maximum Export Capacity (MEC) Bond. Amongst other things, the bond may be drawn upon should the generator fail to timely meet their capacity test (within a reasonable tolerance). The bond amount is calculated at EURO 10,000 per MW of MEC.

  • Demand Connection - Maximum Import Capacity (MIC) Bond: A demand customer Capacity Bond is often referred to as the Maximum Import Capacity (MIC) Bond. Amongst other things, the bond may be drawn upon should the customer fail to construct their facility within the specified time frame (within reasonable tolerance). The bond amount is calculated at the network capacity charge x 18 (months) x MIC (MW).

Decommissioning and Reinstatement Bond - is required to ensure that should the demand customer or generator cease operation and be unable to pay the Decommissioning and Reinstatement Charge that these costs do not accrue to the system or other customers.

A Connection Charge is levied in respect of the works required to connect a demand customer or generator to the system in accordance with the currently CER-approved shallow connection policy.

  • It is important to note that EirGrid is required to identify the Least Cost Technically Acceptable (LCTA) connection method and this is the option that will be presented to the applicant. However, for system reasons EirGrid may choose an alternative connection method to the LCTA, should this be the case the applicant will only be charged for the LCTA connection method. Alternatively, an applicant may request a connection method that deviates from the LCTA solution and where this method is acceptable to EirGrid the applicant will be liable for 100% of any additional costs.

  • For Generator Connections: The generator must pay 100% of the construction of the LCTA physical connection to the transmission system, the shallow connection works. Any deep reinforcements required to facilitate the connection are not charged to the generator.

  • For Demand Connections: The demand customer must pay for 50% of the construction of the LCTA physical connection to the transmission system. Any deep reinforcements required to facilitate the connection are not charged to the customer. For clarity, as set out above, should the customer request a connection method that deviates from the LCTA solution, which is acceptable to EirGrid, the customer will be liable for 100% of any additional costs incurred.
  • Transmission Generator and Demand customers are entitled to build or procure large elements of their own shallow connections in line with the Contestability of Connection Assets paper as approved by the CER. However, there will still be works carried out by the TSO such as design approval, supervision, commissioning, final connections and remote station work, against which connection charges are payable to the TSO.

An On-Going Service Charge is levied on an annual basis for operation and maintenance of shallow connection assets provided in respect of the Connection Charge.

A Decommissioning and Reinstatement Charge is levied upon termination of the Connection Agreement. It covers any costs incurred for the site restoration and the removal of the transmission station and related shallow connection facilities provided in respect of the Connection Charge.

A Use of System Charge is levied for the generator or demand customer's ongoing use of the transmission network as set out in the CER approved Statement of Charges. For further information on Use of System Charges please refer to the Transmission Use of System Charges page on this website.