Single Electricity Market

  • Energy storage and flexibility

    The next episode: Qualification for T-4 Capacity auction

    The final qualification results for the upcoming 2023/24 T-4 Capacity Auction were published on the 3 April. In this week’s blog, we consider what these qualification results tell us. Click here to view full article

  • Energy storage and flexibility

    Take on me… Proposed Balancing Mods

    Since the new SEM go-live on 1 Oct 2018, a topic of heated discussion has been the volatility and extreme prices seen so far in the Balancing Market (BM) including very high prices and a greater than expected incidence of negative balancing prices. The highest prices seen in the balancing...

  • Low carbon generation

    Jump: Pricing in SEM up year on year

    2018 has been an exciting year in SEM – certainly in the Cornwall Insight offices. The signature piece of work this year has been the introduction of I-SEM which, although a long time coming, was impactful. Getting I-SEM operational was one of the hallmark pieces of work for the sector....

  • Low carbon generation

    Don’t you (forget about me): a future without coal in SEM?

    Record-setting daily wind generation output, increasing installed wind capacity and new renewable electricity support schemes all make for great headlines. However, the reality that 42% of generation in SEM last month came from renewables doesn’t feel like the exception, but the rule.   This high, and importantly, consistent wind output...

  • Low carbon generation

    Carbon prices: a key driver of emissions reduction?

    Minister for Communications, Climate Action and Environment Richard Bruton was reported in the Irish Times on 29 November 2018 as saying that Ireland is 95% off meeting its binding EU Greenhouse gas targets. Ireland’s draft National Energy and Climate Plan 2021-2030 (NECP) is due to be delivered to the European Commission by 31 December...

  • Low carbon generation

    Take the money and run: REFIT in I-SEM

    With significant media coverage regarding our EU renewables targets (and the fact that we are missing them by a country mile), attention is drawn to how we reduce our dependence on fossils fuels in Ireland. The advent of I-SEM caused a certain amount of consternation in Ireland, as the primary...

  • Energy storage and flexibility

    Local hero: constraints and security of supply

    Security of supply is back on the agenda. Last week saw the Commission for Regulation of Utilities (CRU) publish its Electricity Security of Supply Report 2018. Replicating the analysis from the long-awaited All-Island Generation Capacity Statement 2018-2027 (GCS), it showed Ireland facing potential deficits within the next 6-9 years. The very same...

  • Low carbon generation

    Thunderstruck: participant behaviour and auction outcome

    The move to I-SEM was ultimately intended to create a level playing field for all market participants to result in more competition. Nothing drives competition quite like a constrained auction and, for many developers, the Renewable Energy Support Scheme (RESS) Auction in 2019 (hopefully!) and thereafter will be their first...

  • Low carbon generation

    Owner of a lonely heart: Intraday continuous liquidity

    When the I-SEM detailed design was released, many participants were concerned about potential liquidity issues in the Intraday Continuous (IDC) market. It would seem that their concerns have merit. As the first few weeks of I-SEM have certainly displayed low volumes in comparison to the Day-Ahead Market (DAM) and three...

  • Low carbon generation

    Coming the long way: wind forecast and imbalance prices

    Last week wind generation accounted for 56% of the generation mix on an all-island basis. The market also saw significant volatility in the Balancing Market (BM), with the Single Electricity Market Operator (SEMO) receiving pricing disputes related to early trading in the BM. While there has been much discussion about...

  • Low carbon generation

    Pour some sugar on me: T-4 CRM auction

    With the introduction of I-SEM last week, other releases in the energy market may have gone unremarked, including the SEM Committee’s (SEMC) decision on the parameters for the first T-4 Capacity Remuneration Mechanism (CRM) auction. Making a robust investment case for new-build dispatchable assets has been a challenge in Ireland...

  • Low carbon generation

    Swan Lake… or choppy waters ahead? Credit risk management in I-SEM

    As the SEM market moves towards its Swan Song we consider the implications of risk in the new markets we are joining. Although most of us are familiar with the concepts of credit risk and protecting oneself from the failure of others to pay us, I-SEM introduces a level of...

  • Energy storage and flexibility

    Roundabout: Reducing complexity in DS3 Procurement

    The DS3 Fixed Contracts Procurement Arrangements Decision Paper, otherwise known as the long-awaited DS3 paper, was released by the SEM Committee last week. The document outlines the framework for how the procurement of DS3 services will be carried out, and how the assessment of bids will be conducted. There are...

  • 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...

  • 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

    Red Dead Redemption – T-1 CRM competition

    Despite historical oversupply in the Irish and Northern Irish electricity generation market (14.9GW relative to a peak demand of approximately 7GW), a sharp tightening could happen soon, and ironically because of measures designed to support security margins. The catalyst for this is the upcoming Capacity Remuneration Market (CRM) auction, which...

  • 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...

  • 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

    “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...

  • 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...

  • 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...