Ireland’s electricity grid market is evolving to operate with up to 80% renewable electricity. This requires adequate supply of system stability services. Ireland has been moving ahead on the design and implementation of competitive procurement of reserve services, where DotEcon has assisted with the design and implementation of new auctions. However, system stability also requires more complex non-reserve services, such as reactive power and inertia.

Our latest report for EirGrid Group and SONI – System Operator for Northern Ireland explores current incentives for supply of these non-reserve services through regulated payments for these services that modulate suppliers’ energy offers. We find there are no clear gains from removing these payments in the interim period; doing so may even lead to higher overall costs by forcing more expensive, non-energy actions to maintain system stability. We also consider outline long-term options for procurement of non-reserve services that might eventually replace current regulated tariffs.

To find out more, see download our report here and see our other work for EirGrid/SONI here.