¬235 million every year. That’s the amount which EirGrid, the system operator in Ireland, will be able to spend on balancing services when the “‘Delivering a Secure, Sustainable Electricity System’ or “‘DS3’ programme is implemented. At almost four times the current spend (¬60m), this will open up new revenue streams for renewable generation, conventional plants, and emerging technologies like energy storage.
Ireland has a legally binding target of 16% renewable energy generation by 2020, and currently achieves around 8%. This also covers heat and transport, but renewable electricity will be critical to achieving this, and there is a separate target of 40% by 2020. However, the annual build rate of renewable generation will need to increase from an average of 180MW per year to at least 250MW per year.
To incentivise the development of renewable energy in Ireland, the Department of Communications, Energy and Natural Resources (DCNR) is developing a new support scheme. This is expected to be implemented by Spring/Summer 2016. These new schemes may consist of FiTs, Feed in Premiums, or CfDs. Further details will be released on the DCENR website: http://www.dcenr.gov.ie/en-ie/Pages/home.aspx.
However, operating a system with lots of intermittent and renewable generation introduces technical challenges. DS3 is a large programme of work that will guarantee that the system can be operated cost effectively and securely with increasing amounts of variable non-synchronous renewable generation. Therefore, the DS3 programme is critical for meeting the 2020renewable electricity targets. Over the last year, TNEI have been providing technical support to EirGrid in developing the details of the System Services arrangements under the DS3. For further information please contact Gordon McFadzean at Gordon.mcfadzean@tnei.co.uk.
New subsidies, revenue streams and funding will enable an increase in the renewables build rate. This is certain to attract developers and investors facing difficult in the UK markets. Additionally, there are big opportunities for energy storage technologies in Ireland. Storage could be used to capture DS3 System Services revenues, or combined with renewable generation to bring forward previously unattractive sites. TNEI is working hard to help clients understand and realise these opportunities. We recently sponsored the Energy Storage Network’s 2016 Annual Meeting in Westminster. For more information click here.
As a specialist energy consultancy, TNEI has excellent experience of providing innovative solutions to aid the development of energy projects, including the understanding and experience gained working alongside EirGrid to deliver DS3. We understand the revenue streams, grid and consenting implications specific to various technologies and technology combinations. This allows us to guide a developer through effective site finding, initial and detailed feasibility, the various stages of consenting, grid connectionand construction.
If you would like any further information about developments in ROI or would like to discuss how TNEI could help to further your aspirations please contact Fiona Campbell at fiona.campbell@tnei.co.uk or call 0141 428 3181.
