De-minimis benefits and the law of unintended consequences

In this blog, we explore the effects of changing to gross demand under I-SEM on small-scale generators.

Projects below 10MW, termed “de minimis” in the Single Electricity Market (SEM), are not required to actively trade. Instead, they enter into a power purchase agreement (PPA) with a supplier to be absorbed into their trading profile.

Suppliers are incentivised to contract with de minimis generators through being charged on a net basis, where sub 10MW plant is treated as negative demand. Therefore, if supplier units have more de minimis generation registered to them than demand then payment is due rather a charge.

Related thinking

Low carbon generation

Understanding the evolution of the Irish electricity markets

The Irish electricity sector has undergone significant change in recent years. The Integrated Single Electricity Market (I-SEM) arrangements introduced in 2018 fundamentally transformed the market framework to maximise competition, facilitate electricity wholesale trading, and incentivise the development of low-carbon generation sources. In parallel the physical system continues to evolve rapidly....

Low carbon generation

Government publishes Ireland’s Climate Action Plan 2023

This article is an extract from our Energy Spectrum Ireland service, which is a monthly publication and weekly news bulletin covering key developments in the Irish and Northern Irish energy sectors. If you are interested, we are currently offering a free trial which you can sign up to by filling...

Commercial and market outlook

Delays to onshore wind investment increase long-term power prices in Ireland

Note: Cornwall Insight Ireland release the 'All-Island Power Market Outlook 2023' on a quarterly basis. The increase in long-term power prices refers to the comparison with our Q3 Power Market Outlook released in October 2022. Data from our fourth - ‘All-Island Power Market Outlook to 2030’ – has forecast that...

Net zero corporates and ESG

Q4 2022 All-Island Power Market Outlook to 2030 overview

This report provides an annual overview of trends for the All-Ireland Power Market out to 2030 using outputs from Cornwall Insight’s latest forward curve for the All-Island (AI) Single Electricity Market (SEM) covering Northern Ireland and the Republic of Ireland. This publication is based on comprehensive market and asset-level power...

Net zero corporates and ESG

Q3 2022 All-Island Power Market Outlook to 2030 overview

This report provides an annual overview of trends for the All-Ireland Power Market out to 2030 using outputs from Cornwall Insight’s latest forward curve for the All-Island (AI) Single Electricity Market (SEM) covering Northern Ireland and the Republic of Ireland. This publication is based on comprehensive market and asset-level power...

Net zero corporates and ESG

Q2 2022 All-Island Power Market Outlook to 2030 overview

Our latest All-Island Power Market Outlook to 2030 report provides a taster of the insights from our Q2 All-Island Forward Curve report. Changes to the SEM, GB and European Markets over the last quarter have been incorporated into our models, including delays in commissioning and new capacity plans, to revise...

Energy storage and flexibility

Five key trends from the flexible asset PPA market

On 20 May, we published our sixth edition of our Flexible Asset PPA Market report. This is our biannual survey and analysis of the Power Purchase Agreement (PPA) market for flexible assets in GB, seeking to understand the market size, active offtakers and optimisers in the space, latest market trends,...

Commercial and market outlook

Perspective | Is the design of the electricity market costing consumers money?

This article is from our Energy Spectrum publication which was published on 4 March 2022. It has become increasingly clear the existing market design is unfit for either a future net zero world or a period of fossil fuel price crisis, but what market design might be best for our...