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 replaced the fixed capacity payments under the SEM. Under the CRM, generators in the I-SEM market must compete in an auction to win a capacity payment in the relevant delivery years. Plants which didn’t win in the delivery year 2018-19 have already announced closures i.e. Kilroot. The T-1 auction for the delivery year 2019-20 is due to take place on 13 December 2018 and SEMO is looking to purchase 7.03GW of capacity. In 2018-19 the total successful capacity was 7.74GW at a clearing price of €41.8/kW.

Related thinking

Low carbon generation

Demand trends: August sees highest demand since March

This article was originally published on 25 August 2020 in our ‘SEM and commodity pricing report’.   In this week’s blog we take a look at the latest fundamental developments impacting power prices in the SEM. This will see us take a look at wind generation in the SEM this year, while...

Commercial and market outlook

Changes: how our Spectrum service is evolving

This article was originally published on 9 June 2020 in our ‘Energy Spectrum Ireland’ publication.  Since Cornwall Insight launched the Energy Spectrum Ireland Service in 2015, it has been providing insight on key developments in the energy markets in Ireland. With the macro market trends of decarbonisation, decentralisation and digitilisation,...

Energy storage and flexibility

Tootsie slide: Demand drop

Since both governments of Ireland have restricted movement in the light of COVID-19, we have observed changes to working patterns. This has subsequently resulted in a reduction and shift in demand profile for the island of Ireland. This week's blog looks at demand reduction since COVID-19 restrictions have been in...

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

Low carbon generation

The Pain: SEM prices get low

It is easy to forget that this weekend is Easter where a large part of the country will have a 4-day weekend.  This year the demand levels are still trending down as restrictions due to COVID-19 become ever tighter. So what will this mean for the electricity generators? This week’s...

Net zero corporates and ESG

Editor’s Pick Ireland | Clean Energy Package: what does it really mean?

The Capacity Market Code removes or restricts payments to fossil fuel generators and allows cross border participation in Capacity markets, arising from the Clean Energy Package (CEP). We look at some of the other potential changes in the way EirGrid and SONI operate our energy system arising from the implementation of the...

Low carbon generation

Sail away: Offshore wind vs. RESS

Last week the European Commission proposed a “Climate Law” enshrining in legislation the objective of achieving climate neutrality by 2050. In this week’s blog, we consider the role of wind in achieving this goal, and Irelands role in the European Green Deal. As we would expect, the green deal identifies...

Energy storage and flexibility

Caught in the balance: Assessing amber alerts in the SEM

SEMO announced on 21 January that it was issuing an amber alert. This happens when the system margin is at a level where a trip of the largest in-feed would give rise to a reasonable possibility of either a failure to meet system demand, or cause a significant deviation in system...

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