Mr. Brian Kennedy:

Ireland is not alone in looking at long duration energy storage. In a report last night by Wood Mackenzie, I read that $57 billion was committed between 2019 and 2022 between governments and companies on LDES. There is recognition that this needs to happen. With that in mind, other systems are looking at this. Australia is a really good example. It is looking to procure 1 GW of LDES. The tender process on that closes this week. That is on a floor-price model similar to the procurement strategy that ESI has proposed, with varying different contract terms, such as 14 years for chemical batteries, 40 years for pump storage or per the life asset for other technologies. It is very much depending on the particular technology and looking at it on its merits.

Other examples include Italy with a duration-specific procurement mechanism. That is one that Energy Storage Ireland will probably not propose, insofar as it almost picks a winner in terms of the duration and leaves out some technologies on the duration. Japan has procured long duration, albeit it is more medium duration. It is three hours. The commercial structure Japan put in place is instructive, insofar as it provides a floor with an option for the asset owner - the economic operator - to earn more than the floor but to give back most of that benefit to the consumers. Some 90% of that benefit goes back to the consumer. It ensures that you sweat the asset and really make the most of it. Great Britain is looking at this also. It is technology agnostic insofar as it has not picked a technology. It has ruled out some technologies. Again, this is not a structure that ESI necessarily would be proposing but it is very far advanced in terms of the technological readiness that it is looking to procure alongside technology readiness level, TRL, 8 and 9 projects.

ESI has looked at the various different frameworks that are put in place. Insofar as Ireland can be fast followers, we are trying to make sure that the process we put in place is robust, coherent and an investable strategy.