Plans to allow energy storage businesses to trade electricity on the Irish market could help in cutting power costs, experts say.
Developers have installed batteries in Ireland capable of storing up to 400 megawatts (MW) of electricity, equivalent to an average power station, but they are used only as a backstop to help ward off potential shortages.
However, from next month, battery storage operators will be permitted to trade electricity on the all-Ireland wholesale market, opening a new source of supply in a move that one industry figure predicts could ease costs.
National grid operator EirGrid, its subsidiary, System Operator Northern Ireland (SONI), and the Single Electricity Market Operator intend to allow battery storage businesses to trade alongside power suppliers from November 13th.
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Confirming the move over the weekend, EirGrid predicted that these businesses would have “expanded opportunities” to contribute to Irish electricity demand.
Batteries can be charged during periods when large amounts of renewable electricity are available to the system and prices are low, said the grid company.
They can then supply this electricity to the market when demand is high. EirGrid expects peak requirements to top 6,000MW at some point this winter, and the Republic is relying increasingly on imports to guarantee supplies.
Richard O’Loughlin, deputy chief executive of Irish company, Gridbeyond, predicted that the initiative should help cut costs as it will allow a new source of electricity supply on the market.
Until now, batteries are only called on as “a last resort” when the electricity supply system is under stress, he said. “They are not able to supply at times of peak demand,” he noted, “but batteries have a key role to play.”
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Gridbeyond develops technology to manage electricity generation and demand.
Mr O’Loughlin said they can switch on quickly and respond easily during periods of high demand. “And this will help lower prices,” he said.
By allowing battery storage operators to participate more fully in the market, EirGrid and SONI will make better use of the potential sources of electricity available to them, he argued.
“This makes the overall cost of balancing the system cheaper for EirGrid,” said Mr O’Loughlin.
The industry has been lobbying for the move for some time, arguing that it could help in cutting electricity costs, which remain high, particularly in the Republic, despite suppliers cutting charges following peaks in 2022 and 2023.
EirGrid said the development would support efforts on both sides of the Border to switch to “a low-carbon energy future by enhancing flexibility, efficiency and sustainability in grid connections”.
Utilities ESB, RWE, Statkraft and others operate battery storage businesses here.
Founded by Mr O’Loughlin and his colleague, Michael Phelan in 2010, Gridbeyond now has businesses in the UK, the US, Japan and Australia.
