Imagine a future where we harness the power of batteries to revolutionize our energy landscape and reduce electricity costs! It's an exciting prospect, isn't it? But here's where it gets controversial...
Currently, batteries in Ireland, capable of storing an impressive 400 megawatts of electricity, are only utilized as a backup plan to prevent potential shortages. However, a game-changing move is on the horizon. From November, battery storage operators will be granted permission to trade electricity on the all-Ireland wholesale market, opening up a brand-new energy supply source.
National grid operators, including EirGrid and its subsidiaries, are set to allow battery storage businesses to trade alongside power suppliers, starting November 13th. This decision is predicted to provide expanded opportunities for these businesses to meet Irish electricity demands.
The potential of batteries to be charged during periods of abundant renewable energy availability and low prices is a game-changer. They can then supply this stored electricity during peak demand periods, helping to stabilize the grid and reduce reliance on imports.
Richard O'Loughlin, deputy chief executive of Gridbeyond, an Irish company specializing in electricity management technology, believes this initiative will cut costs by introducing a new electricity supply source to the market.
"Until now, batteries have only been called upon as a last resort when the electricity supply system is under immense stress," O'Loughlin explains. "They are not utilized during peak demand periods, but their role is crucial."
By enabling battery storage operators to actively participate in the market, EirGrid and SONI will maximize the potential of available electricity sources. "This move will make the overall cost of balancing the system more affordable for EirGrid," O'Loughlin adds.
The industry has been advocating for this change, arguing that it could significantly reduce electricity costs, which remain high, especially in the Republic, despite suppliers' efforts to lower charges following peaks in 2022 and 2023.
EirGrid supports this development, stating that it will contribute to a low-carbon energy future by enhancing flexibility, efficiency, and sustainability in grid connections on both sides of the Border.
Utilities like ESB, RWE, Statkraft, and others already operate battery storage businesses in Ireland. Gridbeyond, founded by O'Loughlin and his colleague, Michael Phelan, in 2010, has expanded its reach to the UK, the US, Japan, and Australia.
So, what do you think? Will this move towards battery storage trading truly revolutionize our energy landscape and reduce costs? Or is there a catch we're missing? We'd love to hear your thoughts in the comments!
