Single Electricity Market (SEM)

Ireland’s Integrated Single Electricity Market (SEM) or (I-SEM) was established in 2007 as a way to unify the energy market on the island of Ireland.

According to Eirgrid it was a ‘first’ at the time, and is operated by a committee drawn from the two energy regulators, north and south, with two independent members.

The SEM, or I-SEM, represents both the wholesale electricity market, and all the policies, procedures, systems and controls required to operate the market.

There are a number of sub-segments including a ‘balancing market’, markets for financial components, and a ‘capacity market’

Electricity Interconnectors HVDC — HVDC Interconnectors are expected to deliver for Europe

Balancing Market

The Balancing Market refers to real infrastructure where the Transmission System Operator (TSO) can call on either generators or consumers to balance the demand-supply requirements of the national grid.

For example: If the TSO instructs an available generator to increase output to balance the grid, the generator is then paid for it’s production from the Balancing Market.

Capacity Market

The Capacity Market refers to commitments made by generators or interconnectors to supply energy into the grid if called to do so by the TSO.

The financial trading infrastructure involved between markets is quite complex and outside the scope of this article. Units traded reflect the underlying product which is MW or MWh, ie power or power conumption.

€/MWh vs MWh

In simple terms, the I-SEM balances price (€/MWh) vs quantity (MWh), with each trade passing through the capacity market, the forwards market, the day-ahead market, the intraday market and the balancing market.

Suffice to say that the I-SEM represents a small part of the European ‘Supergrid’ project, and the commitment by the European Union to fully integrate and harmonise energy grids across Europe.

Ireland's electricity supply-demand — Sample supply-demand for Ireland of 5 GW to 6 GW

Ireland's interconnectors — At 5 GW sample demand, ~ 1 GW is being sourced from Interconnectors

European Interconnectors

A key component in the Single Electricity Market is Interconnectors. Electricity Interconnectors have been called the “European Peace Project” of our decade and there are dozens connecting every country across the continent.

Ireland currently has three operational interconnectors, with two more in the final stages of deployment. These are;

Moyle Interconnector (500 MW)

East-West Interconnetor (500 MW)

North-South Interconnector (I) (300 MW)

North-South Interconnector (II) (1500 MW*)

Celtic Interconnector (700 MW*)

As with all large infrastructure projects, interconnectors are very exciting and worth the investment in time and money.

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