Enabling the Energy Transition
Insights
Energy Storage remains key to unlocking the Energy Transition
By
Cormac Murphy
Energy Storage remains key to Ireland's Energy Transition ambitions. The ability to take advantage of the vast offshore potential to support critical industry and infrastructure development is fundamental to our continuing economic success and well-being.
In 2024, Ireland advanced its energy storage policy with the release of the "Electricity Storage Policy Framework', which outlines priorities for the development of technologies like battery energy storage systems (BESS), lithium-ion, synchronous compensators, and long-duration storage through 2027. The framework emphasises improving market access for storage, enabling revenue stacking, and supporting energy arbitrage. A key initiative for 2025 is establishing a procurement and consultation process, especially for long-duration storage, with a goal of achieving a viable market pathway by 2028.
Storage is also being integrated into system services through the TSOs and Market Operator’s development of the Future Arrangements for System Services. The current DS3 regime has been extended to 2026, with replacement mechanisms being designed under the Day Ahead System Services Auction and a new Layered Procurement Framework. Participants should note the 2023 SEM Committee decision to reduce DS3 tariffs in 2025.
Key developments will include how storage fits into hybrid project connection policies, whether co-location with multiple legal entities will be permitted, and how storage will be valued in supporting grid stability during the energy transition. Additionally, Ireland surpassed its Phase 1 target for Low Carbon Inertia Services, contracting over 10,000 MVAs—about 45% of current system inertia needs—with further studies underway to determine 2030 requirements.