Oireachtas Joint and Select Committees

Tuesday, 20 September 2022

Joint Oireachtas Committee on Climate Action

Engagement with the Commission for Regulation of Utilities

Dr. Paul McGowan:

Batteries are increasingly a very important part of the overall energy landscape in their ability to shave peaks and store excess renewables, and to perhaps use it when the wind is not blowing or the sun does not shine. They are and will be an even more vital part of the energy system as we move forward.

We typically run annual capacity remuneration auctions, but we also run on a T-4 basis, which means four years out from when it is required. We also run T-1 options. Typically, batteries would compete in that because they can actually deliver in that sort of timescale. The mechanisms are there for the batteries and I believe the results show for themselves that hundreds of megawatts of batteries have come onto the system. EirGrid is now looking at how it can use them really intelligently over the peak period. Rather than taking a whole load of two-hour batteries they are daisy-chaining them so they can use them for four hours, that is, putting them into two packs and using for a longer period. They get better value over peak periods out of that.

Absolutely there is a role for batteries. I would say there is a clear route to market for batteries. It would depend on the individual circumstances of the entity that wants to install batteries as to whether it has a commercial case, but there is definitely a route to market for commercial batteries, as is evidenced by the fact that we have now have hundreds of megawatts, and more in the pipeline.

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