Ireland

  • Low carbon generation

    House of the Rising Sun… solar’s time to shine?

    The eagerly awaited results of the first Enduring Connection Policy (ECP-1) batch application process have finally been released. This is a new system for granting connection offers for storage capacity and new generation that succeeds the previous non-Group Processing Approach (non-GPA) and “Gate” systems. The grid application process has been...

  • Energy storage and flexibility

    Like a prayer: frequency market incentives

    The confirmation that I-SEM will finally go live on 1 October this year finally arrived this week. The news turned our thoughts to how the new market will incentivise the correct market dynamics to ensure that I-SEM delivers value. Amove away from a dispatched network to a hybrid model between...

  • Low carbon generation

    Relight my fire: liquidity in the Irish PPA market

    Previously we explored how the Irish Power Purchase Agreement (PPA) market is evolving in response to the I-SEM. We have extensively researched this market to understand PPA pricing, competition and contract structuring. This culminated in the release of our inaugural Irish PPA market report in July. However, overall market share...

  • Energy storage and flexibility

    Just can’t get enough: Irish grid stability on a changing system

    Last week, EirGrid informed the market of another delay to the volume capped DS3 procurement. This mechanism is to allow the System Operator (SO) to obtain from the market system services necessary to balance the system. While the procurement delay may cause some disquiet in the market these commercial arrangements...

  • Low carbon generation

    Every rose has its thorn: the importance of public awareness to domestic solar PV take-up

    Minister Naughten announced that a new scheme for rooftop solar for residential customers, starting on the 31st of July. The new scheme sees a grant administered by the Sustainable Energy Authority of Ireland (SEAI) for domestic solar PV installation on houses built before 2011. The pilot grant will run until 2020...

  • Low carbon generation

    Sunny afternoon – Ireland’s wind drought

    As the sun continues to bathe Ireland and Northern Ireland, spare a thought for the System Operator (SO). This enduring, recent (and unlikely) spell of good weather has a noticeable impacted on renewable generation across the island. What Met Éireann termed “dry, settled weather” is due to a high-pressure system...

  • Home supply and services

    Risin’ up – Suppliers increase domestic energy prices

    Over recent weeks a number of domestic electricity suppliers in Ireland have announced price increases as a result of higher wholesale energy costs. In this week’s blog, we look at these increases and examine the drivers behind them. Click here to view full article

  • Low carbon generation

    More Than a Feeling: Emerging Trends in the PPA Market

    Earlier this year we published a blog exploring the options for imbalance risk allocation within I-SEM Power Purchase Agreements (PPAs). In this, we explained that generators would be inclined to pass the full risk of imbalance to offtakers. This was due to their relevant market experience and the need for...

  • 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

    Into the great wide open: evaluating Irish offshore wind

    Renewables growth in Ireland has been a story with one key protagonist – onshore wind. Its offshore cousin has not progressed beyond a single operational project – the 25MW Arklow Bank installation. This development lacuna has occurred despite the significant resource available offshore in Irish waters. The Strategic Environmental Assessment...

  • Low carbon generation

    Invisible Touch: Irish energy and the EIB

    Last week, ESB and Bord na Móna announced financial close on the 89MW Oweninny wind farm in Mayo. One interesting feature of the public statement was that the European Investment Bank (EIB) was providing 50% of the estimated €160mn investment. As discussed below, in recent years the EIB has not...

  • 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...