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 proposed Greenlink interconnector. The consultation looks at whether it is in the “public interest”.
In the Single Electricity Market (SEM) market, participants can either purchase the right to use capacity on either the East-West Interconnector (EWIC) or the Moyle Interconnector (explicit auctions) or indirectly purchase capacity linked to a successful intraday trade on those interconnectors.
Within I-SEM, the physical flows on the interconnectors are linked to day-ahead and intraday market coupling. In theory, this results in more efficient use of the interconnectors (discussed in a previous chart of the week). There will also be an interconnector-linked hedging mechanism called Financial Transmission Rights (FTRs). This week’s blog looks at the role of FTRs.