Press release
Minister Ryan welcomes provisional results of Electricity Capacity Auction
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
The Minister for Environment, Climate & Communications Eamon Ryan TD today welcomed the publication of the provisional results of the recently held electricity capacity auction for the period commencing October 2024.
The capacity auction process, which operates on an all-island basis, is the primary method for securing new electricity generation capacity that is needed to replace the capacity of oil and coal fired stations expected to close, to support the growth of renewable electricity and to ensure security of electricity supply.
The provisional capacity auction results include over 1,100 MW of new gas-fired generation and over 120 MW of battery storage in Ireland.
Commenting on the provisional results, the Minister said:
"The Government has set an ambitious target of up to 80% of electricity consumption to come from renewable sources by 2030. This is double the current share of renewable electricity and will require development of significant levels of wind and solar generation. It also requires flexible gas-fired generation and storage that can support the variable nature of renewable electricity production and ensure security of electricity supply as we phase out coal and oil for generation."
The Minister went on to say:
"The Climate Action Plan sets out the need for circa 2,000 MW of gas-fired generation over the period to 2030. This generation will replace existing high-emitting power stations and is expected to spend much of its time in reserve to operate only when needed. The provisional auction results published today are a key step towards delivering the generation needed. It is now vital that these projects are developed."
The Commission for Regulation of Utilities, which has statutory responsibility to monitor and take measures necessary to ensure the security of electricity supply, developed a programme of actions which was published in September 2021. The Department works closely with the Commission for Regulation of Utilities and EirGrid in order implement this programme of actions.
Significant progress has been made to date including:
ENDS
The Capacity Market is designed to ensure that there is sufficient electricity capacity to power homes, businesses and industry. The market takes the form of auctions for future years.
Companies or entities that generate electricity offer into the auction, which was designed by the Single Electricity Market Committee. This is made up of representatives from regulators in Northern Ireland (the Utility Regulator) and Ireland (the Commission for the Regulation of Utilities) and two independent members.
The auction is run by the Single Electricity Market Operator (SEMO), a joint venture between SONI in Northern Ireland and EirGrid in Ireland.
Full details of the provisional auction results are available on the SEMO website: https://www.sem-o.com/.