Markets
Energy project modelling in Ireland’s Single Electricity Market (SEM)
Ireland’s Single Electricity Market (SEM) covers the Republic of Ireland and Northern Ireland, with day-ahead and intraday auctions, a balancing market, DS3 system services and a capacity market. Gridcog models how batteries, wind, solar and large loads earn and connect in the SEM, half-hour by half-hour, so you can test a project before you invest.
All-island dispatch-down of wind and solar rose from 7.7% and 4.2% in 2019 to 15.3% and 12.8% in 2026.
The T-4 capacity auction for 2029/30, held on 26 March 2026, cleared at €135k/MW.
Data centres use 23% of metered electricity in Ireland, and greater Dublin has been closed to new data centre connections since 2021.
Ireland targets 80% renewable electricity by 2030, including 9 GW of onshore wind, 5 GW of offshore wind and 8 GW of solar.
How the SEM works
How does the Irish electricity market work?
Ireland and Northern Ireland share one all-island wholesale market, the Single Electricity Market (SEM). EirGrid and SONI are the transmission system operators, SEMO runs the market and SEMOpx runs the power exchange. All trading is in half-hour periods, and since 1 January 2021 the day-ahead market has run as a local auction, without coupling to GB or the EU.
The SEM has lofty decarbonisation targets: 80% renewables by 2030, with 9 GW of onshore wind, 5 GW of offshore wind and 8 GW of solar. Renewable build-out combined with high-cost marginal generation has driven day-ahead spreads on a par with Ireland’s European neighbours.
Which markets can you trade power in in the SEM?
| Market | Order book closes | Delivery | Coupled with GB? |
|---|---|---|---|
01Day-ahead market (DAM) | 11:00 the day before | 23:00 to 23:00, 48 half-hour periods | No; a local SEM auction since 2021 |
02Intraday auction 1 (IDA-1) | 17:30 the day before | 23:00 to 23:00 | Yes |
03Intraday auction 2 (IDA-2) | 08:00 on the day | 11:00 to 23:00 | Yes |
04Intraday auction 3 (IDA-3) | 14:00 on the day | 17:00 to 23:00 | No; local SEM auction |
05Intraday continuous | Rolling, after the day-ahead market closes | Half-hour periods | n/a |
06Balancing market | Real time | Half-hour imbalance settlement | n/a |
How does the SEM compare with the GB electricity market?
| Feature | Ireland’s SEM | Great Britain |
|---|---|---|
| Area | Republic of Ireland and Northern Ireland | England, Scotland and Wales |
| Day-ahead market | Local half-hourly auction on SEMOpx | Hourly and half-hourly auctions on EPEX and N2EX |
| Ancillary services | DS3 System Services at regulated tariffs, moving to auctions under FASS | Dynamic Containment, Moderation, Regulation and Quick Reserve, bought competitively by NESO |
| Capacity market | T-4 and T-1 auctions; battery de-rating calibrated to an 8-hour loss of load window | T-4 and T-1 auctions; de-rating set by duration |
| Battery charging from co-located renewables | Not allowed for a battery that shares a renewable site’s connection (CRU, April 2026) | Allowed |
| Renewable support | RESS auctions, with top-up to the strike price for some rounds | Contracts for Difference |
Thinking Energy
Ireland in Gridcog videos
Short explainers from the Gridcog team that cover Ireland alongside other markets.
Where’s the best place in Europe for behind-the-meter solar and storage?
September 2025 · 3:31
Dispatch-down
Why is dispatch-down rising in the SEM?
Because renewables have become victims of their own success. EirGrid and SONI increasingly instruct wind and solar to reduce output, or ‘dispatch down’, for two reasons. Constraints arise where the network can’t carry energy to where it’s needed, such as from wind farms in the west and north-west to demand around Dublin. Curtailment is driven by system-wide needs: stability, frequency control and the System Non-Synchronous Penetration (SNSP) limit.
The all-island average hides the real picture. In the second quarter of 2026, constraints hit 18.2% for the 390 MW of wind in the north-west of Ireland, and in July curtailment reached 28.4% for the 320 MW of solar in the Midlands. The SNSP limit, the share of non-synchronous generation and HVDC imports allowed on the system, is capped at 75%. In 2025, about 84% of all-island wind curtailment was driven by high-frequency requirements, and the SNSP limit accounted for almost all the rest.
How is dispatch-down compensated?
It depends on the route to market and how firm the grid connection is.
| Route to market | What happens when output is dispatched down |
|---|---|
01RESS 3, RESS 4 and ORESS 1 | Topped up to the strike price whenever available energy is lost to curtailment or oversupply, including in negative-price hours, whatever the connection’s firmness |
02RESS 1 and RESS 2 | Only compensated where curtailment exceeds 10% in two consecutive years, and only for the share above 10%; negative-price hours are excluded |
03Any RESS round, constraints | Not compensated, which hits assets in congested network zones hardest |
04Firm generator on a corporate PPA | Keeps its ex-ante revenue up to its Firm Access Quantity |
05Priority dispatch, including some REFIT assets | Keeps its ex-ante revenue |
06Non-firm generator | Must buy back constrained volumes at the balancing price, so it’s fully exposed |
Co-location rules
Can you co-locate a battery with wind or solar in Ireland?
Yes, since April 2026, with limits. Under the CRU’s April 2026 decision, a single contracted Maximum Export Capacity (MEC) can be shared dynamically between co-located generation and storage. But the battery operates as an independent registered unit and can’t charge from the renewables beside it. It can earn the full merchant stack, working around the solar or wind, but can’t capture the energy they would otherwise lose.
Before the decision, a developer adding a 30 MW battery to a 40 MW solar site had to apply for 70 MW of capacity or split the existing MEC into fixed portions. The alternative structure, a hybrid storage project under RESS, can charge only from the renewable asset, much like a ‘green battery’ in Germany, but no such project has yet succeeded in a RESS auction. Co-located sites also need a single legal entity behind a single connection.
What’s changing for batteries in the SEM?
| Change | When | What it means |
|---|---|---|
01CRU decision on shared MEC | April 2026 | Co-located generation and storage can share one connection’s export capacity |
02SDP-02 | November 2025 | Full wholesale market participation for storage, by allowing negative physical notifications |
03D-TUoS to G-TUoS transmission charges | October 2026 | Storage pays generation rather than demand transmission charges, removing a penalty of up to €30/MWh on arbitrage |
04RESS 6 | Upcoming auction | Up to 7.5% of the energy system integration score goes to storage, with at least 1 MWh of battery per MW of generation to qualify |
Revenue streams
How do batteries earn money in the SEM?
Mainly from DS3 system services and the capacity market, with a growing merchant share. Regulated DS3 payments plus the capacity market have given investors a highly derisked revenue stack. As the SEM moves to a more merchant stack, structures such as tolls, floors and hybrid PPAs, already common for batteries elsewhere in Europe, will be needed.
More than 800 MW of grid-scale batteries have been installed in Ireland since 2018, with a pipeline of 2.3 GW holding planning permission and connection contracts.
- Wholesale
- Balancing and frequency
- Capacity and contracts
- Behind the meter
Balancing and frequency
DS3 System Services
12 services, from frequency response and reserve to ramping and inertia, paid at regulated tariffs multiplied by scalars, including a temporal scarcity scalar linked to SNSP
Capacity and contracts
Capacity market
T-4 auctions four years ahead, with 10-year contracts for new generation and batteries, and T-1 auctions one year ahead; the 2029/30 T-4 cleared at €135k/MW
Read more
Wholesale
Wholesale trading
Day-ahead and intraday auctions in half-hour periods; storage has had full wholesale participation since November 2025
Read more
Balancing and frequency
Balancing market
Opening up to batteries over time
Capacity and contracts
Contracts
Tolls and floors (€/kW/year) and hybrid PPAs in which the battery shapes renewable output
Read more
Behind the meter
Local flexibility
Network support at congested nodes, and ESB Networks’ demand flexibility products
What is replacing DS3?
Future Arrangements for System Services (FASS). FASS replaces the DS3 Regulated Arrangements with competitive procurement, including a Day-Ahead System Services Auction (DASSA) that decides who provides each service for every half-hour, in place of six-monthly tenders. It is designed to support a system running at up to 95% SNSP.
Data centres
Can new data centres connect to the grid in Ireland?
Yes, but only with their own dispatchable capacity. Under the CRU’s December 2025 decision, new data centres over 10 MVA must build dispatchable generation or storage close to the site that covers 100% of their Maximum Import Capacity (MIC) on a de-rated basis, and can’t bring extra demand online until it’s in place. That capacity must be front-of-meter, separately metered and active in the capacity and wholesale markets.
Large data centres must also source at least 80% of their annual demand from new Irish renewable generation within six years of energisation. Meeting the requirements brings exemption from emergency curtailment.
What flexible demand connections are available in Ireland?
European law now obliges the regulator to make flexible arrangements available wherever capacity is short, so in Ireland the decision has largely been made for data centres.
| Arrangement | How it works | Notice before a reduction |
|---|---|---|
01Timed (scheduled) | ESB Networks offers agreements setting the hours, days or seasons when the site must stay below an agreed level | Known in advance |
02Flexible now, firm later | Ireland’s flexible demand connections let a site connect early under restrictions, then convert to firm once reinforcement is complete | Known in advance |
03Real-time curtailment | EirGrid’s operating protocol allows two minutes to acknowledge an instruction and five to comply, with no cap on hours and no compensation | Minutes |
04Bring your own generation | Mandatory for larger data centres under the December 2025 decision | n/a |
What is the Large Energy User Action Plan?
Ireland’s plan for ‘co-locating everything’. The Large Energy User Action Plan (LEAP) sets out a plan-led approach for large energy users such as data centres and semiconductor manufacturing, centred on green energy parks where onshore and offshore renewables, storage and flexible thermal plant sit together. Its 17 objectives cover system planning, a single point of contact for permitting, market design that rewards flexibility, flexible grid connections and private wire.
Modelled in Gridcog
How much battery storage does a data centre need to connect in Ireland?
Far more than the equivalent gas capacity. Using the latest T-4 de-rating factors, Gridcog Senior Energy Analyst Dan Lehmann sized the proximate capacity a 25 MVA data centre needs to meet the CRU’s 100% de-rated requirement.
Ireland’s de-rating method calibrates each asset against an 8-hour loss of load expectation standard, 2.7 times the equivalent GB window, which heavily penalises short-duration batteries. Projects built for proximate generation can still stack capacity revenue, but only on rolling one-year contracts rather than the standard 10 years. Battery developers will likely be able to contract with data centres on toll-like agreements as an alternative reliable revenue stream.
Dan LehmannSenior Energy Analyst
Capacity needed for a 25 MVA data centre
90 MW
Four-hour battery
29 MW
Gas turbine
Sizing storage for a data centre connection or a constrained wind farm in Ireland?
Model your project in Gridcog→Behind the meter
Does behind-the-meter solar pay in Ireland?
Better than the weather suggests. In Laura Hoffmann-Ostenhof’s model of a supermarket using 470 MWh a year, run across nine European markets on the latest 12 months of prices, Ireland came second for solar alone, with about €42,000 of annual bill savings from a 300 kW system, because daytime wholesale prices are consistently high. With a 500 kWh / 2-hour battery added, Ireland ranked close behind Portugal and Italy.
How Gridcog models the SEM
How does Gridcog model Ireland’s Single Electricity Market?
With SEM prices, capacity results and system services in one model, in half-hour periods. Gridcog co-optimises a battery’s dispatch across the markets it can access and shows how dispatch-down, connection limits and contracts change each stakeholder’s cashflows.
Wholesale prices
SEM day-ahead prices in the Gridcog Library, plus your own forward curves. Market Price Forecast Uncertainty lets a battery dispatch on a forecast and settle on actual prices.
DS3 System Services
DS3 payments modelled as regulated tariffs multiplied by the temporal scarcity scalar, using historic SNSP data for each period.
Capacity market
All historic T-4 and T-1 clearing prices for the all-island SEM, with asset-level de-rating factors by duration.
Connections and co-location
Share one export limit between a battery and a wind or solar farm, apply a Site Import Schedule for timed or phased demand connections, and upload interval data to represent real-time curtailment.
Network and non-commodity costs
Network tariffs and non-commodity costs for Ireland, so behind-the-meter projects show their full bill savings.
Contracts and financials
Model RESS-style strike prices, tolls, floors and hybrid PPAs, add each stakeholder, and compare cashflows, IRR and NPV in the Investment Case Report.
Experts
Who are Gridcog’s Irish market experts?
Gridcog’s London team covers Ireland alongside GB and the rest of Europe.

Dan Lehmann
Senior Energy Analyst, London
Helps clients model energy markets in the UK and Europe, and wrote Gridcog’s analysis of Ireland’s co-location opportunity. Before Gridcog, he led the development of smart charging products for fleets at EO Charging.

Joshua Elliott
Energy Analyst
Author of Gridcog’s guide to flexible grid connections for data centres in GB and Ireland.

Pio Pius
Business Development Manager, London
Focused on bringing Gridcog to major clients across GB, Ireland and the Nordics.

Genna Boyle
CCO and Head of EMEA
Began her career in energy trading at Contact Energy in New Zealand, then helped set up the trading team at Limejump and went on to lead its commercial team.
Who models SEM projects in Gridcog?
Developers and IPPs, investors and funds, energy majors, data centres and large energy users, and consultants.
Frequently asked questions
Yes. The SEM is an all-island market covering both the Republic of Ireland and Northern Ireland, so Northern Ireland is not part of the Great Britain market that covers England, Scotland and Wales. The UK therefore has two electricity markets, with different wholesale, capacity and system services arrangements. See the GB electricity market.
Several bodies share the job. EirGrid and SONI are the transmission system operators for Ireland and Northern Ireland, and dispatch the system. SEMO operates the market and settles it, and SEMOpx runs the day-ahead and intraday auctions. The SEM Committee, made up of the CRU and Northern Ireland’s Utility Regulator, regulates it. ESB Networks and NIE Networks run the distribution networks.
Dispatch-down is when the transmission system operators instruct wind or solar to reduce output. It has two causes. Constraints happen when the local network can’t carry the energy, such as from the north-west to Dublin. Curtailment happens for system-wide reasons, such as stability, frequency control and the SNSP limit. All-island, wind dispatch-down reached 15.3% and solar 12.8% in 2026.
System Non-Synchronous Penetration: the share of non-synchronous generation, such as wind, solar and batteries, plus HVDC imports, that the system allows at any moment. Non-synchronous assets don’t spin in step with grid frequency. The SNSP limit is capped at 75%, and the Future Arrangements for System Services programme is designed to support a system running at up to 95% SNSP.
The services EirGrid and SONI buy to keep the system secure at high renewable shares, such as frequency response, reserve, ramping, reactive power and inertia. Under the Regulated Arrangements in place since May 2018, 12 services are paid at regulated tariffs multiplied by scalars, rather than through competitive bids. Future Arrangements for System Services will replace them with auctions, including a day-ahead auction.
It pays generation, storage, demand-side units and interconnectors to be available, through competitive least-cost auctions. T-4 auctions, four years ahead, cover new and existing capacity, with 10-year contracts for new generation and batteries; T-1 auctions, one year ahead, are mainly a true-up. The 2029/30 T-4 auction cleared at €135k/MW. Separate locational areas cover Northern Ireland, greater Dublin and the rest of Ireland.
The Renewable Electricity Support Scheme: Ireland’s auction-based support for new renewable generation, with ORESS for offshore wind. Projects bid a strike price, and in RESS 3, RESS 4 and ORESS 1 they are topped up to it when available energy is lost to curtailment or oversupply. RESS 6 will be the first round to reward co-located storage in its scoring.
Yes. Gridcog can size the proximate generation and storage a data centre needs to meet the CRU’s de-rated requirement, apply timed or phased import limits with a Site Import Schedule, and model real-time curtailment from interval data. It then shows each party’s cashflows, for example a data centre paying a toll to a battery owner who also earns capacity, flexibility, ancillary and wholesale revenue.
Request a live demo
Model your SEM project in Gridcog
Request a demo and we’ll show you how Gridcog models your project against SEM prices, DS3, the capacity market and Irish connection rules.
The team behind Gridcog

Fabian Le Gay Brereton
Chief Executive Officer & Co-Founder
Previously co-founded Greensense, acquired by ERM Power (now Shell Energy).

Pete Tickler
Chief Product Officer & Co-Founder
Co-founded Greensense and led digital innovation at ERM Power (now Shell Energy).

Genna Boyle
Chief Commercial Officer & Head of EMEA
More than 10 years in energy strategy, trading and renewables, with senior roles at Battery Optimiser and Limejump.
Which other markets does Gridcog model?
Gridcog supports 40+ markets, including Great Britain, Australia’s NEM and WEM, New Zealand and, in Europe, Germany, Spain, Poland, Italy, Portugal, the Netherlands, Belgium and France.


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