I-SEM

  • Low carbon generation

    Fight the power: CRU, Huntstown and the Appeal Panel

    Lemme hear you say The indirect impacts of last year’s capacity auction continue to come. An Appeal Panel has determined that the Commission for the Regulation of Utilities (CRU) erred in seeking to enforce a decision on licence changes relating to Huntstown power station. If implemented, they found that the...

  • Low carbon generation

    Don’t let me down: I-SEM interconnector hedging

    Interconnection is important for Ireland and Northern Ireland’s security of supply; Eirgrid’s most recently published Generation Capacity Statement showed capacity deficits by 2021 without the subsea connections between GB and the island of Ireland. Last week, the Commission for the Regulation of Utilities (CRU) launched a consultation on Element Power’s...

  • Heat networks

    Goodbye Yellow Brick Road: REFIT in I-SEM

    Last week the Department of Communications, Climate Action & Environment (DCCAE) decided on the transition of REFIT to I-SEM. DCCAE confirmed that it will adopt a “Blended Approach” to the calculation of the Total Market Revenue (TMR), which is used to estimate the level of support provided under the scheme....

  • Home supply and services

    Irish Retail Market Shares – Search for the Hero

    Just over seven years ago, price regulation in the domestic electricity market was fully removed. This allowed all suppliers the freedom to set their own tariff prices. In the domestic gas market, next July represents four years since Bord Gais was subject to price deregulation, opening up the gas market...

  • Home supply and services

    Same as it ever was – I-SEM transition and the domestic retail market

    Up to ten weeks ago we would have expected to be a full week into the new I-SEM wholesale market. Most commentary on the I-SEM delay has focused on the impact on market systems and generators, but what of electricity suppliers? The transition to I-SEM offers an opportunity for tariff...

  • Heat networks

    Money for nothing – NI non-domestic RHI payments

    The Northern Ireland non-domestic Renewable Heat Incentive (RHI) was introduced in November 2012. Its aim was to incentivise the uptake of renewable heating technologies by providing participants with subsidies to generate heat from renewable sources, such as biomass. Despite its best intentions, the failings of the NI RHI are now...

  • Low carbon generation

    Shoot to thrill – pricing volatility in I-SEM

    Following last week’s discussion on managing balance responsibility under a PPA structure, it seems opportune to consider the potential volatility in the prices faced by those who find themselves out of balance. This week’s blog reviews GB imbalance pricing compares it to historical System Marginal Price (SMP) in the current...

  • Low carbon generation

    Are you gonna go my way? | SEMC consults on changes to T-4 capacity auction

    On 14 May the SEM Committee (SEMC) published a consultation on the Capacity Renumeration Mechanism (CRM) focusing on interim arrangements, updating auction design and specific parameters for the first T-4 auction for capacity year 2022-23. It is an important document for potential bidders into the March 2019 auction as, if...

  • Low carbon generation

    Take on me: PPA options to manage imbalance

    The I-SEM delay may give renewables generators some pause for thought in relation to Power Purchase Agreements (PPA) or trading contracts. Six months gives more time for any open negotiations on PPAs to continue and we believe some key risks will need to be negotiated. However, negotiations on many contracts...

  • E-mobility and low carbon

    Ireland failing to get out of first gear on EV deployment

    There are increasing potential benefits that the mass-rollout of electric vehicles (EVs) will bring globally and in particular markets. Not only will they help to reduce emissions from the transport sector they also could offer potential solutions to grid balancing in the form of mobile battery storage and so-called “vehicle...

  • Low carbon generation

    “We are the champions” – Ireland hits 65% SNSP

    On 13 April, Eirgrid announced that it was now able to handle 65% variable (non-synchronous) renewable generation on the system at any given time. Eirgrid said in its statement that the island of Ireland’s power system is the first in the world to be able to accommodate this level of...

  • Low carbon generation

    Butterfly effect: Directed Contracts & the future of I-SEM

    Directed Contracts (DC) can seem a lower order priority in the week the I-SEM delay is formally announced. However, in considering the I-SEM-induced changes to the DC regime, it seems the issues raised reflect wider questions about the direction of the market. This week’s blog contemplates these implications. Click here to...

  • Commercial and market outlook

    I -SEM go-live date delayed until 1 October

    The SEM Committee (SEMC) announced today (17 April) that the go-live date for the Integrated Single Electricity Market (I-SEM) has been pushed back until 1 October 2018. I-SEM is the new wholesale electricity market arrangement for Ireland and Northern Ireland, designed to integrate the all-island electricity market with European electricity...

  • Low carbon generation

    Crossing the streams – how much do wholesale prices impact Irish interconnector flows?

    The Commission for Regulation of Utilities (CRU) is considering whether the proposed Greenlink interconnector is in the public interest and, if so, what regulatory regime should underwrite, or partially underwrite it. The CRU expects a subsequent application from the Celtic Interconnector also. This week’s blog examines how much the difference in wholesale...

  • Low carbon generation

    Eirgrid and DS3 – a lot done, more to do

    On 29 March Eirgrid published its long-awaited consultation on the Delivering a Secure, Sustainable Electricity System (DS3) System Services Volume Capped Competitive Procurement. It provided some welcome detail on the next steps for DS3, but there are residual questions outstanding which make it difficult for current investors to ascertain risks...

  • Energy storage and flexibility

    Combination locks: hybrids and connections in Ireland

    On 27 March the Commission for Regulation of Utilities (CRU) issued its final decision on the Enduring Connection Policy Stage 1 (ECP-1). The decision was largely as expected with at least 1,000MW of new connection offers under the 2018 batch. Our previous blog ("Sunblock") highlighted the oversubscription issues in the market with...

  • Energy storage and flexibility

    What’s the frequency Kenneth? Rapid Eirgrid Management (REM) on a high wind system

    Last week saw the Irish Wind Energy Association’s (IWEA) spring conference, and far from being the end of the world as we know it, the sector feels fine. On 14 March, the sector set yet another record with 55% of that day’s electricity coming from wind generation. The overall possible...

  • Low carbon generation

    Here be dragons: basis risk and REFIT projects in I-SEM

    Last week on 14 March the Irish market saw another record for wind generation, with over 55% of the island of Ireland’s electricity generated from wind power for the full day. It is clear that the TSOs are becoming more comfortable with wind as it increases its market penetration, however,...

  • Power and gas networks

    Sunblock: Solar & Irish connection policy

    The forthcoming decision of the Commission for Regulation of Utilities (CRU) on stage 1 of its Enduring Connection Policy (ECP-1) will shape the future Irish generation portfolio. The draft ECP-1 document, published in November 2017, sets out how the CRU proposes to allocate electricity connections following Gate 3 – an...

  • Low carbon generation

    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...

  • Low carbon generation

    Scale of the DS3 market: Great Expectations or For Whom the Bell Tolls?

    This week Eirgrid announced a delay in the volume capped DS3 procurement of a subset of system services for high availability technologies (e.g. demand side units, batteries, flywheels). With this delay and the current Storm Emma related high winds, it is a relevant time to consider the potential impact of...

  • Low carbon generation

    Ireland’s thermal plants sail into probing wind

    The level of wind penetration in Ireland is one of the highest in Europe. This has already had some major impacts on the market, including depressed wholesale prices; reduced running hours for some thermal plants; and curtailment of wind output. This week’s blog considers wider interactions of wind generation with...

  • Low carbon generation

    CRM auction: age isn’t everything

    Media reports in Ireland and Northern Ireland are raising concerns over the possibility of power plant closures. The threatened shutdowns arise due to the outcome of the T-1 Capacity Remuneration Mechanism (CRM) auction. The closures may commence as early as May 2018 if the coverage is to be believed. How...