Electricity Storage Policy Framework

Electricity storage, which entails capturing electricity produced at one time for future use, will be a key element in the successful operation of our electricity network and will accelerate our use of renewable electricity, providing cheaper, greener electricity to the consumer. Grid scale electricity storage is vital in securing an electricity grid capable of exploiting the opportunities provided by the fast pace of Ireland’s renewable generation programme and supporting the future growth of Irelands industrial sectors.

In line with our Climate Action Plan commitments, we are delighted to publish the Electricity Storage Policy Framework for Ireland. The policy framework is a first of kind policy, which clarifies the key role of electricity storage in Ireland’s transition to an electricity-led system, supporting Irelands 2030 climate targets, it may be considered as a steppingstone on Ireland’s path to net zero carbon emissions.

The Electricity Storage Policy Framework refers, in the main, to front of meter electricity storage, outlining its present roles, technical processes, market positions and regulatory structures in Ireland. The framework addresses the grids immediate and near-term needs by supporting the incorporation of electricity storage from the immediate up until 2040 and presents 10 government actions to support the role of electricity storage systems in Ireland’s energy transition, identifying the key stakeholders and timelines for these actions.

As part of the policy framework development process, the Department of Climate, Energy and the Environment held a 'Consultation on developing an Electricity Storage Policy Framework for Ireland' from November 2022 to January 2023. The consultation received 68 responses. A review of responses, developed by Azorom, was published in May 2023. The responses to the consultation formed an invaluable part of the policy development process.

The Electricity Storage Policy Framework presents 10 government actions to support the role of electricity storage systems in Ireland’s energy transition, identifying the key stakeholders and timelines for these actions. These actions are:

Action 1

Maintain a technology neutral approach to all electricity storage systems.

Action 2

Creation of a ‘sandbox’ project to advance both System Operators’ technological knowledge of emerging electricity storage technologies.

Action 3

Convene an electricity storage and system services working group as part of the Accelerating Renewable Electricity Taskforce.

Action 4

Convene a forum for an expanded group of stakeholders including statutory bodies, leading industry representatives and academic or interest groups.

• In November 2024 the department hosted a stakeholder forum which included participants from a broad range of sectors. The attached report offers an insight into the event, including the participants, the context, content and outcomes of Irelands first Electricity Storage Stakeholder Forum. Further information and the Electricity Storage Stakeholder Forum Report can be found on the department's website.

Action 5

Support access to the wholesale electricity markets, arbitrage and revenue stacking for electricity storage systems.

Action 6

Support the immediate procurement of Demand Flexibility products and of (long duration) electricity storage to meet specific network needs, on the Distribution and Transmission systems respectively.

Action 7

Initiate a ‘Quantity’ consultation to establish the optimal (long duration) electricity storage requirements to meet climate targets and electricity grid network expansion between 2030-2040.

Action 8

Initiate a ‘Financial’ consultation to establish if the expected market mechanisms due between 2025-2028 will provide sufficient service provider certainty to meet the optimum (long duration) electricity storage systems requirements of 2030-2040.

Action 9

If required and pending the outcome of the ‘Financial’ consultation, develop a market framework to further incentivise the incorporation of (long duration) electricity storage system technologies to the grid to meet projected 2030-2040 requirements.

Action 10

Ensure a route to market for the identified optimum (long duration) electricity storage requirements for 2030-2040 is in place before end of 2028