The introduction of I-SEM creates new challenges to generators in Ireland. Previously wind farms spilled their electricity into the SEM and received the market price for whatever generation was delivered into the pool. The I-SEM introduces three markets in which a wind farm’s electricity can be sold;
- The Day Ahead Market (DAM),
- The Intra Day Market (IDM) and
- The Balancing Market (BM).
Generators now have to be balance responsible in I-SEM i.e. if they forecast their electricity production and sell in to the DAM then they must deliver this electricity. If not, the generator will have to pay for the electricity that they committed to sell to other parties. This has introduced a trading risk and an increased trading cost to wind farms and other generators in Ireland. It also means that generators will have to be active in a number of markets and reconcile their position on each of these markets.
CCL has developed innovative solutions for I-SEM that seek to minimise costs to generators and provide a service that covers all their requirements.