The High Court has begun hearing challenges by three power companies to a decision by EirGrid and the energy regulator excluding them from an “electricity auction” over a dispute about the feasibility of them finishing projects within EirGrid’s time frame.
Kilshane Energy Ltd, which planned to build two power plants in north Dublin, said it had supplied “detailed” requested time frames and plans for completion of works and it should have been allowed to sell electricity to the national grid.
Kilshane is challenging EirGrid’s decision and its backing by the Commission for Regulation of Utilities (CRU) on the two facilities earmarked for Huntstown. EirGrid and the CRU are contesting the case.
Two related energy firms, Coolpowra Flex Gen Ltd and Coolpowra Bess Ltd, are bringing similar proceedings against EirGrid and the CRU, relating to projects in east Galway.
The auction was the “only game in town” for generators looking to sell into the grid and, from Kilshane’s point of view, the refusal to allow it to participate would have “cascade effects” on projects that cost tens and hundreds of millions of euro, counsel for the company told the High Court.
The court heard that the closing of the auction had been deferred from this Thursday for one week. Mr Justice Micheál O’Higgins told the hearing he was conscious of the time involved and would deliver a decision in the case first, giving his reasoning later – a position accepted by all parties.
Tony McBride SC, for Kilshane, told Mr Justice O’Higgins that his client had planned to build two 299MW “candidate unit” power plants at Huntstown. It was refused access to the auction after EirGid rejected the proposal on the grounds that the 200KV substation nominated by Kilshane would not be big enough and that a different substation of 400KV would be required.
“Essentially, you need a bigger plug,” Mr McBride told Mr Justice O’Higgins.
Mr McBride said that Kilshane had provided detailed schedules for the company’s project at Huntstown which entailed the company constructing their own 400KV substation, and that Kilshane had offered to provide more information to EirGrid but received no reply.
[ Power company secures expedited hearing on lockout from grid supply auctionOpens in new window ]
Mr McBride submitted that Kilshane said it would have completed the project by March 2028, seven months before the October 1st, 2028, deadline.
Counsel said access to the auction does not mean that the “new capacity” plants had to be already constructed, but that there had to be a “feasibility” of them being completed and operational by the deadline to supply the grid – in this case October 1st, 2028.
Mr McBride said a judge in a related case in Northern Ireland last week defined feasibility as “reasonably practical but less than ‘likely’”. Counsel said that after Kilshane went to a ‘Capacity Market Dispute Resolution Panel’ in October, EirGrid’s refusal decision was “incorrectly upheld based on feasible meaning ‘more likely than not’”.
Counsel said the case was a “simple one of the principle of fairness in seeking to have the rejection quashed … Although EirGrid and the Regulator may say it is complex, it isn’t”.
The case continues tomorrow with Brian Conroy SC, for Coolpowra, making his oral submissions. The hearing is expected to last until Thursday.
