APEx Conference

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Wind Power in Ireland Treatment of wind in the
Single Electricity Market
APEx Conference, Paris 16th October 2007
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Presentation Overview

• Introduction Wind Power in Ireland
• Single Electricity Market (SEM) Overview
• Treatment of Wind in SEM

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Presentation Overview

• Introduction Wind Power in Ireland
• Single Electricity Market (SEM) Overview
• Treatment of Wind in SEM

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Introduction Wind Power in Ireland

• Ireland Power System
• Approximately 6500 MW generation installed
  (excluding wind)
• Peak demand 5035 MW
• Minimum demand 1814 MW
• 803 MW Wind Power installed at present
• Wind Grid Code
• Priority Dispatch

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Wind Power in Ireland to end 2007
1000
900MW
900
800
700
600
Installed Wind Power (MW)
500
400
300
200
100
0
1997
1998
1999
2000
2001
2002
2003
2004
1992
1993
1994
1995
1996
2005
2006
2007
Year
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Wind Power in Ireland Future

• Government Targets for Renewable Energy
• 15 of electricity from renewable resources by
  2010
• approximately 1160 MW of wind required
• 33 of electricity from renewable resources by
  2020
• in the region of 4600 MW of wind required
• Ireland well placed
• to meet these targets

Connected 803 MW Contracted 451 MW Offer
Process 1344 MW In Queue 2923 MW Total 5521 MW
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Introduction Wind Power in Northern Ireland

• Northern Ireland Power System
• Operated by SONI (Systems Operator for Northern
  Ireland)
• 2132 MW generation installed (excluding wind and
  interconnection)
• Peak demand 1717 MW
• Minimum demand 561 MW
• 120 MW wind installed and an additional 138 MW
  approved

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Presentation Overview

• Introduction Wind Power in Ireland
• Single Electricity Market (SEM) Overview
• Treatment of Wind in SEM

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Single Electricity Market (SEM) Overview

• Single Electricity Market Joint market for both
  Ireland and Northern Ireland
• Dual Currency
• Market Start 1st November 2007
• Mandatory pool with single clearing price
• All energy must be sold directly into and bought
  from the pool
• Separate physical energy trades are not permitted
• De minimis level of 10 MW
• Separate Capacity payment mechanism
• Specific rules for special participants

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Mandatory Pool
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Presentation Overview

• Introduction Wind Power in Ireland
• Single Electricity Market (SEM) Overview
• Treatment of Wind in SEM

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Wind in SEM Classification
Wind Grid Code Compliant?
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Wind in SEM Energy Payments

• Price Takers
• If wind blowing and wind power unit produces
  energy, it will receive single clearing price,
  SMP (System Marginal Price) for all energy
  produced
• Price Makers
• Scheduled by the market software based on the
  prices the wind power unit offers into the
  market.
• Will receive SMP for scheduled energy

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Wind in SEM Constraint Payments

• Price Taker
• If dispatched down by TSO, each Price Taker wind
  power unit will still receive payment in full for
  what could have been produced
• Price Maker
• Always receive full energy payment for market
  schedule amount
• If dispatched down pay back avoided costs for
  difference
• If dispatched up receive costs incurred for
  difference

Dispatch Quantity
Market Quantity
Dispatch Quantity
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Wind in SEM Capacity Payments

• Incentive to provide capacity adequacy through
  economic signals
• Paid to all generators who provide capacity
• Based on a combination of
• Forecasted value of when capacity most needed
• Actual availability on the day
• Higher payments in times of small generation
  margins
• In current market in Ireland no capacity payment
  for wind
• In SEM, all wind power units will receive a
  payment for available active power

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Summary Wind Power in Ireland

• Increasing wind power in Ireland
• Priority Dispatch
• Price taker wind receives SMP for energy produced
• Price maker wind receives SMP for market
  scheduled energy
• All wind power units will receive capacity
  payments

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Thank you
www.eirgrid.com