\nSTRUCTURE OF ELECTRICITY INDUSTRY IN IRELAND\n<\/p>\n<\/p>\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
\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
\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
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\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 \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 \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 \nTemperature has a great impact on electricity demand in Ireland and Northern Ireland. For this reason, some historical data are adjusted.\n<\/p>\n \nMost of the sources used for this assignment refers to this adjustment as normalised or temperature correction and in other it does not adjust the figures. Therefore, some results might differ.\n<\/p>\n \n \nFigure 3. Past values of recorded maximum demand. [3]<\/a>\n<\/p>\n \nSince the mid-1990s until now the use of higher efficiency natural gas plants and the increase in production from renewable sources. Between the years 2001 and 2004 took placed an increase in imports of electricity and the closure of old peat fired stations, as well as the coming of a new steam Combined Cycle Power plant (392 MW in August 2002 and 343 MW in November 2002).[4]<\/a> These shifts in generating technology have had a direct effect in the efficiency of electricity supply.\n<\/p>\n \n\n<\/p>\n \nFigure 4. Efficiency of electricity supply. Source SEAI 2017 Report[5]<\/a>\n<\/p>\n \nElectricity generation has increased significantly over the period 1990-2017, the share of renewable sources on electricity generation has being increasing since 1992, due to the new wind power capacity.\n<\/p>\n \nTable 1. Percentage of fuel-mix provided by CRU 2017 report. (These figures represent the breakdown of the mix of energy provided by suppliers to their costumers)\n<\/p>\n \n\n<\/p>\n \nIn the table 1 above results for renewable energy is includes GOs imports, which differs considerably we compared with results published by the Sustainable Energy Authority of Ireland for 2016.\n<\/p>\n \n\n<\/p>\n \nFigure 5. Flow of Energy in Electricity Generation 2016 \u2013 Outputs by fuel[6]<\/a>. Note: Output percentage for Wind Energy was 20.4% (22.3% normalised) and overall number do not include imported GOs\n<\/p>\n \nThe first commercial wind farm was installed in Ireland in 1992 at Bellacorrick, co Mayo with a total installed capacity of 6.45 MW. Since then wind energy capacity has been gradually increasing to EU targets for renewable energy. Nowadays the largest wind farm intalled capacity is in Meenadreen, co Donegal with a power of 95 MW.\n<\/p>\n \nAt the present there are 226 wind farms operational in the Republic of Ireland and 276 in the all island the current installed capacity is 4,471 MW in the Republic of Ireland and 1,160 MW in Northern Ireland.\n<\/p>\n \nTable 2. Ireland\u00b4s wind capacity 1997-2017[7]<\/a>[8]<\/a>\n<\/p>\n
\n<\/img><\/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
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\n<\/img><\/p>\n\n1.2.2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 FUEL MIX FOR ELECTRICITY GENERATION
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\n1.2.3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 THE ADOPTION OF WIND GENERATION
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