The All Island Single Electricity Market (SEM) is the wholesale electricity market implemented across the entire island of Ireland. The market went “live” on 1st November 2007. The aim of the project was to create a single market for electricity in Ireland.
The project was started following a joint policy decision by the Minister for Enterprise, Trade and Investment in Northern Ireland and the Minister for Communications, Marine and Natural Resources to create the all-island energy market.
All electricity generating and supply companies in Northern Ireland and in the Republic of Ireland are now required to buy and sell energy through this market, a “gross pool”.
The pool creates a single common transparent price for energy on the entire island for every half hour of the day. It accurately reflects fuel prices and the demand for electricity in that half hour. In this pool, competing generators offer their output based on fuel price and efficiency. All electricity for the whole island can be bought and sold via this pool. The new market has replaced the past arrangements where electricity is bought directly by supply companies from power generators at undisclosed prices.
Tynagh Energy was an active participant in the design and implementation of the new market and through its membership of the modifications panel, ensures that the objectives of the market are maintained which is the creation of a secure, economic and transparent electricity market.