Today, the 1st of March 2013, the Single Electricity Market (SEM) Committee has published its decision paper on the Treatment of Curtailment in Tie-break Situations (Reference: SEM-13-010). This paper outlines the SEM Committee decision following a period of consultation on the proposed decision paper (Reference: SEM-12-090) and consideration of the responses to same.
In summary, the SEM Committee has made the following decisions in respect of the treatment of curtailment in tie-break situations in the SEM:
- Pro rata treatment of all windfarms in dispatch (firm and non-firm) for the purpose of curtailment;
- On the market side, a cessation of Dispatch and Balancing Cost (DBC) payments for curtailment in tie-break situations by start of 2018 (1 January 2018);
- The Transmission System Operators and Single Electricity Market Operator (TSOs/SEMO) will be tasked with implementing this mechanism through the relevant market system, codes and dispatch system changes.
Responses received to SEM-12-090 are published alongside this paper. The paper and responses can be viewed here on the All Island Project website. The Committee also published the TSO ‘Definition of Curtailment and Constraint’ setting out the methodology for distinguishing between events of constraints and curtailment (SEM-13-011).
It should be noted that this decision paper does not align with the opinions of the majority of respondents, which include private developers, state owned developers, international developers and associations.
Furthermore, at a Meitheal na Gaoithe conference in 2012, the Commission for Energy Regulation (CER) highlighted that there may be need to incentivise TSOs to minimise curtailment and constraint. This was also raised by respondents to the paper. However, this valid point was only acknowledged with no actions implemented which may create regulatory uncertainty around the levels of curtailments and constraints that are coming down the road…