EUAA Submission: Capacity Mechanism Project Initiation Paper

EUAA Submission: Capacity Mechanism Project Initiation Paper

Emily Wood | February 10, 2022

‘…The reforms being considered by the ESB are of critical importance to EUAA members and we welcome the opportunity to participate in the process. The Capacity Mechanism Project Initiation Paper (Project Initiation Paper) released by the ESB in December 2021 provides a very good overview of the issues at hand and provides useful guidance on the pathway forward requested by government officials.

The energy transition is resulting in the accelerated exit of traditional dispatchable fossil fuelled generators that to date have provided energy users where a bundle of services that were folded into the provision of energy including dispatchability, system strength and inertia. While the provision of zero emission energy is of great value, Variable

Renewable Energy (VRE) is not currently required to provide many of the services vital to the reliable operation of the energy system. From an energy system perspective, 1MWh of energy from VRE is less valuable than 1MWh of energy from traditional sources….’

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