The All-Island Single Electricity Market (SEM) operates as a single market across the Republic of Ireland and Northern Ireland. Spot market prices are uniform across the entire market and converted into local currency for each jurisdiction. The majority of installed capacity is wind and gas-fired generation. Wind resource is some of the best Europe and represents the majority of renewable capacity and ~20-25% of total generation.
Market Design
How is the market structured?
The All-Island Single Electricity Market (SEM) has competitive wholesale and retail markets. Generators are required to sell all physical power through a central market run by the system operator. Buyers and sellers can enter bilateral financial contracts to secure prices on a long-term basis. Electricity users are free to choose their supplier. Network chares are regulated and passed through by suppliers into the final bill
What are the geographic boundaries of the market?
The All-Island Single Electricity Market (SEM) covers the Republic of Ireland and Northern Ireland. The market operates with a dual-currency. Generators and supply companies bid into the market based on their local currency (GBP in Northern Ireland, EUR in Ireland) which are converted into a common currency using a daily exchange rate. There are separate regulators, system operators and policymakers that determine local transmission costs, supply regulations and renewable policy etc in the two jursidictions.
What are the relevant price and delivery zones?
The All-Island Single Electricity Market (SEM) operates as a single price zone. Spot market prices are uniform across the entire market. If there is congestion in certain parts of the network, the costs of managing those constraints is recovered uniformly across all users of the system.
Can I buy long-term power in the traded markets?
In Ireland all physical power must be sold by generators on the spot market. However, generators and buyers can enter into financial contracts to secure prices on a long-term basis. There are relatively small volumes traded on this basis via brokers or via the mandatory sale of “Directed Contracts” by generators deemed to have market power with contracts lengths typically less than [2 years]
Who do I need to contract with to buy power?
End-users must buy their power from a licenced electricity supplier unless the power is generated on-site. In Ireland renewable generators can apply for a streamlined supplier licence in order to sell their power directly in the market
How are system costs and other social charges levied?
Network charges and other system costs (such as capacity mechanism costs and the universal service obligation) are charged to electricity supplies who pass these through to end users
How do I prove I've bought renewable power?
Across the EU, renewable generation is certified using GoOs (Guarantees of Origin). GoO certificates are issued by the national regulator for every MWh of eligible renewable output.
These certificates are used by suppliers to meet their Fuel Mix Disclosure (FMD) requirements in order to report the average mix of electricity they have bought to supply their customers.
What are the key institutions?
Regulators:
- CRU (Commission for Regulation of Utilities) – Republic of Ireland
- Utility Regulator – Northern Ireland
Key Government Departments:
- DCCE (Department of Communications, Climate Action & Environment) – Republic of Ireland
- Department for the Economy – Northern Ireland
- Department for the Economy – Northern Ireland
Market Operator:
- SEMO
Power Exchange(s)
- N/A
- Total Capacity
- Total Generation
Total
Capacity
14 GW
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