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{"id":253388,"date":"2020-04-11T10:14:29","date_gmt":"2020-04-11T10:14:29","guid":{"rendered":"https:\/\/glowriters.com\/structure-of-electricity-industry-in-ireland\/"},"modified":"2020-04-11T10:14:29","modified_gmt":"2020-04-11T10:14:29","slug":"structure-of-electricity-industry-in-ireland","status":"publish","type":"post","link":"https:\/\/glowriters.com\/structure-of-electricity-industry-in-ireland\/","title":{"rendered":"Structure of Electricity Industry in Ireland"},"content":{"rendered":"
\n
\n

\nSTRUCTURE OF ELECTRICITY INDUSTRY IN IRELAND\n<\/p>\n<\/p>\n

\n1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 KEY FEATURES OF THE ELECTRICITY INDUSTRY IN IRELAND
\n<\/h2>\n

\n1.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 WHOLESALE MARKET & SYSTEM MARGINAL PRICE
\n<\/h3>\n

\n1.1.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 SINGLE ELECTRICITY MARKET \u2013 SEM
\n<\/h4>\n

\nThe Single Electricity Market or SEM is the wholesale electricity market operating in the Republic of Ireland and Northern Ireland. It is regulated by the Commission for Energy Regulation (CER) in the Republic of Ireland and by the Utility Regulator in Northern Ireland.\n<\/p>\n

\nIt was created in 2007 to combine the two separate markets. The aim of the SEM was to provide competitive, sustainable and reliable wholesale electricity market and deliver long-term economic and social benefits, as well as lower cost of electricity generation.\n<\/p>\n

\n1.1.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 SINGLE ELECTRICITY MARKET OPERATOR
\n<\/h4>\n

\nThe SEM is operated and administrated by Single Electricity Market Operator (SEMO). The organization is managed by Eirgrid in the Republic of Ireland and SONI in Northern Ireland.\n<\/p>\n

\n1.1.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 SYSTEM MARGINAL PRICE
\n<\/h4>\n

\nThe SEM design is a centralised and mandatory all-island wholesale pool market, through which generators and suppliers trade electricity. Generators submit bid into this pool based on their fuel related operating costs.\n<\/p>\n

\n\"\"
\n<\/img><\/p>\n

\nFigure 1. SEM \u2013 Wholesale electricity market all-Ireland[1]<\/a>\n<\/p>\n

\nThe System Marginal Price (SMP) is determined by SEMO based on generator costs and on customer demand for electricity in half-hour periods. The SEMO determines the cheapest generator cost bids necessary to meet the demand. The most expensive generators are \u201cout of merit\u201d and they are not run and are not paid SMP, keeping prices down.\n<\/p>\n

\n\"\"
\n<\/img><\/p>\n

\nFigure 2. More expensive generators are \u201cout of merit\u201d and hence they are not run and are not paid SMP.[2]<\/a>\n<\/p>\n

\nThe mandatory centralised pool model in SEM in which all generators and suppliers must participate, has provided more transparency, and brought in new efficient generators into the market. Hence, providing environmental benefits. This has helped to keep prices down and provide security of supply.\n<\/p>\n

\n1.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 FUEL MIX TRENDS
\n<\/h3>\n

\n1.2.1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ELECTRICITY DEMAND
\n<\/h4>\n

\nElectricity demand is a fundamental aspect when analysing energy generation and assessing the capacity market. It is important to understand the energy demand to ensure just enough generation to keep the system.\n<\/p>\n