Notice

Energy transition, offshore renewables and electricity interconnection cooperation: UK - Ireland memorandum of understanding

Published 11 September 2023

The Department of the Environment, Climate and Communications of the Government of Ireland on the one part and the Department for Energy Security and Net Zero of the Government of the United Kingdom of Great Britain and Northern Ireland on the other part (hereinafter referred to individually as a ‘Participant’ and collectively as the ‘Participants’).

Considering:

The common interests of the Participants to work on the implementation of the Paris Agreement and in leading the global transition to clean energy through development of reliable, affordable and sustainable energy sources.

The obligations and commitments of the Participants under the Trade and Cooperation Agreement between the EU and the United Kingdom.

The importance of the Single Electricity Market (SEM) encompassing Ireland and Northern Ireland on the island of Ireland, and of interconnection between the SEM and Great Britain.

The cooperation between the North Seas Energy Cooperation and the United Kingdom of Great Britain and Northern Ireland on offshore renewable energy as expressed in the Memorandum of Understanding of 18 December 2022.

The Ostend Declaration and the Ostend Declaration of Energy Ministers of 24 April 2023, including the commitment by the Participants to explore opportunities to cooperate in the development of further interconnection between the Single Electricity Market on the island of Ireland and Great Britain, including hybrid / multi-purpose projects.

Recognising:

The benefits of cooperation between the Participants to accelerate the delivery of offshore renewable generation, including floating offshore wind in the Celtic and Irish Seas, interconnection and offshore hybrid assets, which includes hybrid interconnector projects that connect directly with offshore wind farms and energy islands, and the importance of wider regional cooperation to facilitate their development.

The need to ensure a balanced equilibrium between achieving offshore renewable energy objectives, while maintaining environmental protection, the economic well-being of local communities, and consideration of other marine activities.

That the development of onshore renewable energy generation in both jurisdictions will benefit from increased levels of information sharing, including with regard to the design and experience with support schemes for renewable electricity.

The potential role that renewable and low carbon hydrogen can play in enabling deep decarbonisation of energy systems, and the benefits that close cooperation between the Participants can have in terms of knowledge sharing and future interoperability.

That supply chains, including ports and shipping, are key enablers of offshore renewables and offshore grid infrastructure.

That this Memorandum of Understanding will be complementary and without prejudice to the cooperation that is provided for in the Memorandum of Understanding between the United Kingdom and North Seas Energy Cooperation of 18 December 2022.

That this Memorandum of Understanding will not affect any of the laws, legal obligations or duties, domestic or otherwise, applicable to Ireland, or to the United Kingdom, or any of their respective international obligations. In particular, this Memorandum of Understanding should not affect and does not prevail over any of the obligations of Ireland as a Member State of the European Union.

Have come to the following arrangement:

Paragraph 1: Purpose

The purpose of this Memorandum of Understanding is to facilitate closer cooperation between the Participants to promote the development of renewable energy, to promote the development of electricity interconnection between the Participants, and to promote the development and deployment of renewable and low carbon hydrogen, in particular from renewable sources, and cooperation in these fields, by:

a. Establishing a framework for increased cooperation by the Participants in the deployment of onshore and offshore renewable energy, and renewable and low carbon hydrogen, in particular from renewable sources, through regular engagements between policymakers and other relevant stakeholders.

b. Establishing a framework for cooperation between the Participants to explore opportunities for further interconnection between the Single Electricity Market on the island of Ireland and Great Britain, including offshore hybrid asset projects.

Paragraph 2: Areas of cooperation

1. The following topics have been identified as priority areas for cooperation and information sharing between the Participants under the framework of this Memorandum of Understanding, noting that the list is not exhaustive:

a. Offshore renewable energy, including but not limited to fixed-bottom and floating offshore wind, offshore grid development, ports and shipping, and other elements of the supply chain

b. Electricity interconnection, and in particular the development of Offshore Hybrid Assets

c. Maritime spatial planning, including with regard to offshore generation and offshore grids

d. Onshore renewables, including wind and solar generation

e. Development of onshore electricity transmission system infrastructure

f. Renewable and low carbon hydrogen developments and opportunities, with a particular focus on electrolytic hydrogen produced from renewable sources, and opportunities for cooperation and information sharing on developments across the hydrogen value chain

g. Environmental protections, including how to speed up the renewable deployment process while maintaining environmental protections

h. Dialogue on pathways to achieving net zero emissions in the electricity sector

i. Additional areas of cooperation as the Participants may jointly decide upon in writing.

2. The Participants intend to cooperate, and endeavour to encourage and promote strategic and technical cooperation between their respective system operators, regulators, and other relevant stakeholders, to achieve the following aims:

a. Exploring the potential benefit of further electricity interconnection to both Participants, particularly offshore hybrid assets

b. Facilitating and supporting further interconnection and offshore hybrid assets where it is feasible and mutually beneficial to both participants in both the near and longer term and developing a joint view of benefits of further interconnection

c. Exchange of views on efficient and appropriate arrangements to facilitate and maximise the value of specific electricity infrastructure projects, particularly those most appropriate to enable the functioning of offshore hybrid assets including the efficient functioning of offshore bidding zones, cognisant of the obligations of Ireland’s EU membership

d. Information sharing and consideration between the Participants and relevant stakeholders on how best to align and optimise maritime spatial planning, including with regard to exploring opportunities for offshore infrastructure including further interconnection and offshore hybrid assets.

Paragraph 3: Implementation and governance

1. The Memorandum of Understanding intends to encourage cooperation between the Participants and implementing agencies which includes energy authorities, regulators, system operators and other relevant stakeholders, including through the following:

a. A meeting of the Participants twice annually, and where appropriate implementing agencies, to be hosted by each Participant on an alternating basis

b. Periodic additional information sharing and technical discussions with regard to the areas of cooperation identified in Paragraph 2

c. The respective Ministers intend to meet periodically, at least once a year, to discuss the progress made on achieving the priorities set out above, on the mutual decision of the Participants

d. Other forms of cooperation as the Participants may jointly decide to put towards the areas of cooperation.

2. To enable the cooperation described in Paragraph 2(2), the Participants intend to convene a Joint Working Group comprising representatives of each Participant, and their implementing agencies as appropriate.

a. The Joint Working group is to meet as frequently as necessary to enable the cooperation described under Paragraph 2(2), the timing of which the Participants will jointly decide, with a first meeting to take place before the end of 2023

b. The Participants intend to agree the terms of reference for the Working Group at its first meeting

c. Subgroups may be established by the Participants to discuss the cooperation described in Paragraph 2(2) in more detail and report findings and actions to the Working Group meeting. Representatives from the Participants’ and implementing agencies and other relevant industry bodies and stakeholders may be invited to participate in the subgroups.

Paragraph 4: Designated authorities

The designated authorities responsible for the implementation of this Memorandum of Understanding will be The Department of the Environment, Climate and Communications on behalf of Ireland, and The Department for Energy Security and Net Zero on behalf of the United Kingdom, and where appropriate, the Embassy of Ireland in the United Kingdom and the Embassy of the United Kingdom in Ireland.

Paragraph 5: Arrangements of the participants

Both Participants endeavor to facilitate the involvement of government institutions, National Regulatory Authorities, System Operators, research institutions and other stakeholders where appropriate to establish cooperation activities aimed at fulfilling the objectives of this Memorandum of Understanding. The Participants will communicate and cooperate fully with the aim of ensuring that the objectives and outcomes are successfully achieved.

Paragraph 6: Costs

Each Participant bears its own costs associated with the cooperative activities intended under this Memorandum of Understanding unless the Participants jointly decide otherwise in writing. Activities under this Memorandum of Understanding are subject to the availability of appropriate funds, in conformity with budgetary provisions and the relevant laws of each Participant. This Memorandum of Understanding does not impose any financial obligations on the Participants.

Paragraph 7: Amendment, termination and dispute resolution

At any time, a Participant may propose amendments to this Memorandum of Understanding, which may be jointly approved by the Participants in writing. Either Participant may terminate this Memorandum of Understanding by means of 3 months’ written notice to the other Participant. The Participants will seek to finalise the activities already under implementation.

Any dispute about the interpretation or implementation of this Memorandum of Understanding will be resolved through consultations between the Participants and will not be referred to any national or international tribunal or third party settlement.

Paragraph 8: General provisions

This Memorandum of Understanding constitutes an expression of the Participants’ good faith to engage in the cooperation described herein.

The Participants acknowledge that this Memorandum of Understanding is not an international agreement, does not create any legally binding obligations and does not affect the primacy of the Participants’ respective national legislation and international commitments, including Ireland’s obligations as an EU Member State.

The Participants acknowledge the importance of World Trade Organisation rules on trade and investment, and the importance of their shared international commitments in this regard.

Paragraph 9: Final provisions

This Memorandum of Understanding comes into effect on the signature date.

This Memorandum of Understanding will continue to have effect until 30 June 2026 and may be extended for a further period of time if jointly decided by mutual written consent of the Participants.

Signed in London on 11 September on 2 original copies, both in the English language.

For the Department for Energy Security and Net Zero
Claire Coutinho MP
Secretary of State for the Department for Energy Security and Net Zero

For the Department of the Environment, Climate and Communications
Eamon Ryan TD
Minister for the Department for the Environment, Climate and Communications