Written answer
Electricity Generation
109. Deputy Barry Heneghan asked the Minister for Climate, Energy and the Environment if he has engaged with EirGrid, the Commission for Regulation of Utilities and representatives of the demand-side response sector regarding the operation of the electricity market and the participation of flexible demand resources; the outcome of any such engagement; and if he will make a statement on the matter. [60271/26]
Comment on this
The regulation and operation of the electricity market, including arrangements governing the participation of demand-side response and other flexible demand resources, is a matter for the independent regulator, the Commission for Regulation of Utilities (CRU) and, in the case of the all-island wholesale electricity market, the Single Electricity Market Committee (SEMC) (of which CRU is a member) acting through its statutory functions.
Under the Electricity Regulation Act and the Single Electricity Market framework, the CRU has responsibility for the regulation of electricity markets, the protection of consumers, the promotion of competition, the oversight of system and market operation, and facilitating the efficient development of a secure, sustainable and decarbonised electricity system. The CRU also has statutory functions relating to network regulation, market rules, security of supply, and the removal of barriers to participation by new and innovative market participants.
Accordingly, detailed regulatory decisions concerning the participation of demand-side response and flexible demand resources fall within the remit of the CRU and SEMC rather than the Minister.
I am aware that the CRU, EirGrid and other relevant stakeholders are actively considering a range of measures to support increased demand-side flexibility. The CRU’s National Energy Demand Strategy Annual Update 2026 highlights ongoing work to increase flexibility provided by Demand Side Units (DSUs), remove barriers to participation, develop flexibility markets and complete Ireland’s first Flexibility Needs Assessment, which will help identify future system flexibility requirements and inform market development.
Similarly, the SEM Committee’s Interim Forward Work Programme (July to December 2026) includes specific workstreams on DSU energy payments, balancing market reforms relating to DSUs and demand-side resources, and broader market design initiatives intended to support flexibility and efficient participation of demand-side resources in the Single Electricity Market.
In addition, the SEMC is currently consulting on high-level design options for the next iteration of the Capacity Remuneration Mechanism. That consultation is considering reforms to better reflect the contribution of emerging technologies, including storage and demand-side response, and identifies flexibility integration as a key consideration for the future design of the capacity market.
My Department maintains regular engagement with the CRU, EirGrid and other stakeholders on broader energy policy matters. However, the detailed design and implementation of electricity market arrangements and the participation of demand-side resources are matters for the CRU and SEMC in accordance with their statutory responsibilities.