Energy markets need to be backed up by a suite of system services, such as reserve and stability services, to ensure that the energy system can function reliably. The Single Electricity Market Committee (SEM-C) in Ireland needs to procure availability of system services by offering contracts with both short and long durations, to cater for existing capacity and encourage investment.

We were commissioned by the SEM-C to come up with auction rules suitable for a high level framework it had already set out. Our report covered specific provisions of these rules, such as ‘package bidding’ to help bidders manage risk, as well as the contractual obligations that help tie in the systems services with related markets, and is available here.