The Commission for Energy Regulation (CER) and the Northern Ireland Authority for Utility Regulation (NIAUR) (jointly the Regulatory Authorities (RAs)) needed to develop new market structures to comply with the EU Third Energy Package. This would involve modifying the all-island Single Electricity Market (SEM) they had jointly created into the Integrated Single Electricity Market (I-SEM). The aim was to implement the I-SEM in 2017 but in order to do so the RAs required advice on the appropriate procurement and remuneration of system services, as part of the DS3 (“Delivering a Secure and Sustainable Electricity System”) Programme, which had been initiated by the Transmission System Operators (TSOs) and supported by the RAs. IPA provided the economic analysis of available options to inform the SEM Committee’s decision.
To provide the required consultancy services IPA undertook economic, financial and technical analysis to support supply side analysis and economic appraisal of the requirement for additional system services (sometimes called ancillary services). This involved:
A Final Report outlining IPA’s key findings and recommendations was published on the All-Island website.