Dáil Éireann Debate, Tuesday - 16 April 2024
159. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications to provide an update on the energy storage policy for Ireland; if there are plans to alter EirGrid’s market systems in order to allow that energy storage asset to trade in the market; the reason that the participation of energy storage assets is restricted in EirGrid’s market systems; and if he will make a statement on the matter. [16110/24]
View answer160. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications to provide up update on co-located projects; how he plans to address the barriers that currently exist; and if he will make a statement on the matter. [16111/24]
View answer161. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he has plans to establish investment frameworks for long-duration energy storage; to report on progress on long-duration energy storage in Ireland; and if he will make a statement on the matter. [16112/24]
View answerI propose to take Questions Nos. 159 to 161, inclusive, together.
My Department is currently drafting an Electricity storage policy framework, due for publication in Q2, 2024. This document will set out the departments policy for electricity storage systems, their role in the grid system, their role in the electricity markets and an overview of the present safety and regulatory aspects in place for electricity storage systems.
Electricity storage systems are an important element in Ireland’s greenhouse gas emission reduction targets, as set out in the Climate Action Plan. Electricity storage systems are critical in providing flexibility and security of supply to the Irish electricity system. Electricity storage systems not only increase the volume of renewable electricity delivered to the consumer but provide vital network efficiency functions, ensuring functionality of the electricity grid throughout Ireland's energy transition journey.
My Department engages on an ongoing basis with the Commission for Regulation of Utilities (CRU), EirGrid the Transmission system operator (TSO) and ESB Networks the Distribution system operator (DSO) to fully support the incorporation of the necessary electricity storage to the grid network.
The CRU is an independent regulator, accountable to a committee of the Oireachtas and not the Minister. EirGrid and ESB Networks are also independent of the Minister in the exercise of their functions as System Operators.
The Commission for Regulation of Utilities (CRU) was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the 1999 Electricity Regulation Act (Amended) and subsequent legislation.
The CRU is responsible for, inter alia, the licensing of electrical storage, the regulation of electrical storage in the electricity market and electricity storage grid connections, including Hybrid co-location of electricity storage assets with renewable generation assets.
In conjunction with the CRU, both system operators have recently completed public ‘Call for evidence’ and ‘Consultation’ papers regarding ‘route to market’ for electricity storage assets of varying durations. Further progress on this matter is expected throughout 2024.
Under Section 34 of the 1999 Electricity Regulation Act (Amended), the CRU may give directions to system operators, EirGrid and ESB Networks, on the terms and conditions of access to the electricity system. Based on the CRU’s policy directions, the system operators issue connection offers to generators and storage projects.
The use of hybrid connections and the co-location of renewable generation assets and electricity storage assets presents an opportunity to increase the incorporation of renewable electricity and maximise the utilisation of existing grid infrastructure without increased costs to the consumer. Currently it is possible to obtain a Hybrid connection, for various forms of generation, on the Irish system for a single legal entity at a connection point. The CRU are currently working to facilitate the connection of multiple legal entities behind a single connection point, resolve the challenges to increasing the 120% limit and reviewing the Maximum Export Capacity (MEC) behind a single connection point.
