10-year agreements underpin investment
Existing coal-fired unit to close by 2024
Premium support for new N Irish generation
Czech-based power company Energeticky a Prumyslovy Holding (EPH) is to build 338 MW of de-rated gas-fired generation capacity at its Kilroot site in Northern Ireland, the company said Thursday.
EPH unit, EP UK Investments, won 10-year capacity agreements in the recent T-4 auction for delivery 2023-24, paving the way for two new units to replace an existing 520-MW oil/coal-fired unit at the site.
Data from auction organizers Eirgrid and SONI showed EP Kilroot winning contracts for one 258-MW and one 80-MW unit, both at GBP109,560/MW/year ($134,501/MW/year).
The old coal unit at Kilroot is expected to close by 2024 due to stricter air-quality standards under the Industrial Emissions Directive.
EPH bought the power station, its first investment in Northern Ireland, from AES Corporation in June 2019.
EPH also won one-year contracts in the 2023-24 auction for existing capacity at its Ballylumford and Tynagh gas-fired power stations in the Republic of Ireland. The awards were for 526 MW and 344 MW de-rated, respectively.
EP UK Investments has an 80% stake in Tynagh Energy Limited.
Ireland’s Single Electricity Market capacity auction for 2023-24 cleared at Eur46,149/MW per year for Irish units and at GBP43,666/MW per year for units in Northern Ireland, organizers Eirgrid and SONI said Tuesday.
Some 115 units in all were awarded agreements for total de-rated capacity of 7.322 GW.
Some 44 units, meanwhile, were awarded new capacity agreements. Existing units get one-year agreements, new units get 10-year agreements.
New generation in Northern Ireland attracted premium support in the auction, the Kilroot gas units clearing at GBP109,560/MW/year. First energy to the network from the units was foreseen on September 1, 2023.
Irish auction: new capacity awards, 2023-24 delivery
Source: S&P Global Platts, Author: Chris Johnstone, 7 May 2020