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 day, the Utility Regulator (UR) wrote to the owner of Kilroot, AES. That plant previously sought to close, as a result of not winning a contract in last year’s capacity auction. AES was allowed to transfer a capacity contract from its other station at Ballylumford to Kilroot.

In addition to this, SONI has agreed to a new system support services contract for Kilroot (K1) at a reported cost of £14mn to energy users – about £6 on the average bill. These changes indicate that all may not be as it seems in a market with reportedly high levels of dispatchable generation capacity.

In this week’s blog, we take a look at the security of supply on the all-island system and consider some locational aspects of that.

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