Airtricity Entered The Republic Of Ireland

Published Date: 02 Nov 2017

Airtricity

Transmission & Distribution of Electricity

Paul Keely

B00038004

Submitted to the Department of Engineering, School of Informatics and Engineering, Blanchardstown Institute of Technology in partial fulfilment of the requirements for the degree of

BSc (Hons) Energy Systems & Industrial Automation

March 2013

I hereby certify that the material, which is submitted in this assignment/project, is entirely my own work and has not been submitted for any academic assessment other than as part fulfilment of the assessment procedures for the programme Bachelor of Science (Hons.) in Energy Systems & Industrial Automation. Any sources cited have been duly acknowledged in the text.

Signed:_______________________________Date:______/______/____

Table of Contents

Airtricity

Airtricity was founded in Ireland in 1997. Originally founded as Eirtricity by Eddie O’Connor it developed generation capacity in Ireland in counties Cavan, Donegal, Sligo and Wexford. Only seven of a planned two hundred turbines were built by Eirtricity and the company changed its name to Airtricity in 2002.

Airtricity is Ireland’s fastest-growing, greenest and largest independent energy provider, supplying over half a million domestic and commercial gas and electricity to customers in the Republic of Ireland and Northern Ireland. The company is the broadest-based energy provider in Ireland and the UK supplying electricity, gas and home services to around 10 million homes and businesses. Airtricity is Ireland’s third largest and fastest growing energy provider, supplying over 800,000 domestic and commercial gas, electricity and home energy services customers in the Republic and Northern Ireland.

Airtricity is officially recognized as Ireland’s leading greener energy supplier. The generation of the electricity supplied to all Airtricity customers’ results in 31% less CO2 emissions per MWh than the energy supplied to the average customer in Ireland. Around 40% of the electricity Airtricity supplies to its customers on an island basis is generated from renewable sources – the greenest energy supply of any provider. (Airtricity, 2013)

Customer Numbers & Consumption

In 2009 Airtricity entered the Republic of Ireland competitive domestic energy supply market, the following year the company entered the Republic’s competitive domestic natural gas market. In 2010 Airtricity was the first energy provider to enter Northern Ireland’s newly competitive domestic electricity market and in June 2012 acquired Northern Ireland’s leading natural gas supplier Phoenix Supply Ltd. Airtricity now supplies over 550,000 electricity and 250,000 natural gas customers.

Airtricity had the largest net gain in terms of domestic electricity customer switching in Q1 2012, gaining nearly 10,000 customers while Bord Gáis Energy lost over 17,000 customers during the same period. Overall, domestic consumption in Q1 2012 was down from 2,646,581 MWhs in the same period in 2011, possibly due to milder weather in Q1 2012. (CER, 2012)

From the latest figures available from CER Electricity & Gas Retail Markets Report Q1 2012 it can be seen that Airtricity has increased both its customer’s numbers and its MWh’s (Q1 2009-Q1 2012). (CER, 2012)

Figure Domestic Market Share (CER, 2012)

In the small business market, Small Business customers are those with a Low Voltage Non-Maximum Demand (DG5) connection, overall customer numbers and consumption were down, customer numbers fell from 191,656, while consumption was down from 1,097,055 MWhs. Airtricity gained 1.5% in terms of MWhs. (CER, 2012)

Domestic Savings:

USwitch found that moving energy suppliers could mean big savings for homeowners. It said the average household was spending €1,179 on electricity by using ESB/Electric Ireland's standard domestic rate but by switching to Airtricity's Home Electricity Saver, the annual cost drops to €1,049.

This is a one-year contract, and the householder will have to sign up for a direct debit. Over a year, the savings on electricity amount to €130.

(Weston, 2013)

In the Medium sized business market, Medium-Sized Business customers are those with a Low Voltage Maximum Demand (DG6) and Public Lighting (DG3) connections, overall customer numbers have increased from 24,196 in Q1 2011, while MWhs has decreased from 1,075,936from the same period for 2011. (CER, 2012)

Figure Medium Business Market Share (CER, 2012)

Large Energy Users (LEU) customers are those with DG 7, 8, 9, 10 & TCon connections. There was an increase in LEU customer numbers from 1,623 in Q1 2011. MWh increased from 1,857,938 in Q1 2011. Airtricity gained 1% in customer numbers from Q4 2011. (CER, 2012)

Figure LEU Market Share (CER, 2012)

Airtricity has completed the highest number of domestic and business customer disconnections in electricity supplier sector. (CER, 2012)

Deregulation & Tariffs

In February 2000, as a result of EU directive 96/92/EC, the electricity market in Ireland was opened to competition. Larger customers using 4 GW hours and over of power per year became free to choose their own electricity supplier. The retail electricity market opened fully to competition in February 2005.

In November 2007 a Single Electricity Market (SEM) came into effect with the trading of wholesale electricity in Ireland and Northern Ireland on an all-island basis. All business markets were deregulated from October 2010. From April 2011, the domestic market is deregulated with all suppliers free to set their own tariffs. (Citizens information, 2010)

The Single Electricity Market Operator (SEMO) facilitates the continuous operation and administration of the Single Electricity Market. SEMO is a joint venture between Eirgrid and SONI, which was established in June 2005. SEMO is a joint venture between EirGrid, the transmission system operator for the Republic of Ireland, and the System Operator for Northern Ireland (SONI). SEMO is licensed and regulated by the Commission for Energy Regulation (CER) in Ireland and the Northern Ireland Authority for Utility Regulation (NIAUR). The Single Electricity Market (SEM) is a wholesale electricity market for an all Island mandatory pool of electricity, which operates with dual currencies and provides a competitive market for 2.5 million consumers.

The unit price Airtricity charge for electricity supply includes both the Airtricity energy charge and regulated pass-through charges. Pass-through charges are the charges that all electricity suppliers must pay other entities in the Single Electricity Market (SEM) when supplying electricity to customers, such as those for the use of the ESB Networks and Eirgrid’s systems. ESB Networks and Eirgrid set these charges, subject to regulatory approval by the CER on an annual basis.

Tariffs for Business customers are catergorised in five groupings:

DG5: General purpose nightsaver or General purpose 24H Meter

DG6: MIC < 526kVA (LVMD) / MIC > 526kVA (LVMD)

DG7: MIC < 526kVA (MV) / MIC > 526kVA (MV)

DG8: MIC > 526kVA (MV)

110KV (Tcon) MIC > 526kVA

For Large Energy Users (LEU) there is a public service levy which was increased for the period Oct 2012 to Sep 2013 as shown in the table below.

Table LEU public service levy (Airtricity, 2012)

For domestic consumers there are a range of tariffs available including dual saver options which cover electricity and gas, there are a various amount of different dual options available. There are also pay as you go and green energy tariffs available.

Table Tariffs & Components (Airtricity, 2013)

Airtricity in the Gas Market

In relation to the gas market only, the current method of calculation of gas volumes supplied and market share uses Non Daily Metered (NDM) allocations data, which is derived statistically. In terms of customer numbers, Airtricity has a 19% market share in terms of customer numbers at the end of Q1 2012 - no change from the previous quarter. However, Airtricity has a 20% market share of GWhs, up from 17.5% in the previous quarter. (CER, 2012)

Figure Gas Domestic Customer Numbers & Consumption (CER, 2012)

Figure Gas Domestic Market Share (CER, 2012)

Generation

Airtricity’s electricity supply to customers comes from a range of sources. They have the highest proportion of electricity sourced from renewable generation of any energy supplier in Ireland and the lowest CO2 emissions per MWh.

Figure Fuel Source Comparison (SSE, 2013)

Figure Average Electricity Supply (SSE, 2013)

Airtricity built its first wind farm in 2000 and now have 32 operational wind farms throughout Europe, with a further 13 under construction. They will have invested nearly €1 billion developing wind farms in Ireland by the end of 2013. Currently under construction is the 504MW Greater Gabbard development, the largest offshore wind farm in the world, and the 350MW Clyde onshore wind farm in Scotland. These two projects alone will be able to generate enough energy to power 800,000 households. SSE Generation powers Airtricity with renewable energy from the largest wind generation on the island of Ireland. Over 500MW of renewable energy from 26 wind farms power Airtricity’s electricity supply, including power from Ireland’s largest wind farm, the 84MW Meentycat Wind Farm in Co. Donegal. (SSE Ireland, 2013)

SSE (Scottish and Southern Energy plc.) Ireland brings together four leading SSE brands across Northern Ireland and the Republic of Ireland including Airtricity, Airtricity Utility Solutions, Ireland’s leading street lighting contractor, SSE Renewables, the largest renewable energy developer in Ireland and SSE Generation.

Airtricity is Ireland’s greenest and largest independent energy provider, supplying over half a million domestic and commercial gas, electricity and home energy services customers in the Republic of Ireland and Northern Ireland.

Airtricity Utility Solutions is Ireland’s leading street light contractor and is responsible for the maintenance of around 300,000 streetlights on behalf of almost 90 local authorities in the Republic of Ireland. (Airtricity, 2013)

SSE is the third largest generation capacity owner in Ireland with 1,568MW in operation including 500MW of wind farm capacity. SSE are currently constructing a 460MW CCGT (combined cycle gas turbine) at Great Island, Co. Wexford which is expected to be commissioned in 2014, it is a modern and efficient clean gas-fired power plant which will replace the existing 240MW fuel oil unit at the site significantly decarbonizing electricity generation in Ireland.

SSE Renewables is responsible for the development and construction of SSE Group’s European renewable energy projects, including onshore and offshore wind, hydro, marine, biomass, and solar. SSE is the leading generator of renewable energy in the UK and Ireland, with over 2,200MW of renewable generation capacity and over 15,000MW of renewable energy projects in construction, with consent or in development. SSE has a commitment to reduce the carbon intensity of its electricity generation by 50% by 2020. (SSE, 2013)

SSE believes the energy industry in Ireland needs to be reshaped to reduce carbon dioxide emissions. Ireland has emission reduction and renewable energy targets to meet Kyoto protocol targets. This means that the way in which Ireland generates electricity must change. Also, to diversify electricity generation as increased global demand for fossil fuels has led to fossil fuel resources becoming increasingly scarce, expensive and at risk of supply chain interruption. (SSE, 2013)

Investment

In order to make this commitment SSE continues to make further investments in renewables. SSE have invested over €1 billion in Irish renewables since 1997 in Ireland’s renewable generation. They believe that their continued investment in the renewable sector will:

Improve affordability as rising demand from emerging economies is consistently driving up the price of fossil fuel resources. It seems inevitable that global demand will move to a point where it consistently exceeds supply.

Ensure energy security as an energy mix that is overly dependent on a limited number of resources is subject to fluctuations in international commodity prices and unforeseen upstream events – a diverse energy generation portfolio is more secure.

Decarbonize generation – SSE is committed to reducing by 50% the carbon intensity of electricity produced at power stations in which it has an ownership or contractual interest in over the period from 2006 to 2020. (SSE, 2013)

Renewables

SSE Renewables is Ireland’s largest renewable energy developer, responsible for the development and construction of SSE Group’s renewable energy projects across Ireland, building onshore, offshore wind farms, hydro, marine and solar projects and have invested over €1 billion in Irish renewables.

In operation

500.96MW

In construction

18MW

With consent for development

1,373MW

Table Generation of Renewables

SSE Renewables has almost 1400MW in construction or with consent for development. SSE operates 25 onshore wind farms in Ireland generating over 500MW of electricity to power supplier Airtricity – including power from Ireland’s largest wind farm, the 84MW Meentycat Wind Farm in Co. Donegal. (SSE, 2013)

There is over 2GW of wind capacity installed on the all-island network, which is enough to power more than 1.3 million homes. At some stages wind is supplying 50% of the total demand, one of the highest levels of renewable energy anywhere in the world. (SSE Ireland, 2013)

The first wind farm in Ireland was built at Bellacorrick, Co. Mayo in 1992. Since 1992, onshore wind energy has become recognoised as a mature, clean, energy technology. In 2009, wind energy provided Ireland with 10.5% of its electricity consumption. (SSE, 2013)

Governments in both Ireland and N. Ireland have committed to targets of 40% renewable electricity generation to be delivered by 2020 and wind power will be the key technology for the decarbonisation of the power sector. SSE Ireland has over 500MW of renewable energy capacity across Ireland and has almost 1400MW of onshore and offshore wind farm capacity under construction or with consent for development.

Other renewables

In February 2009, SSE entered into a joint venture with Aquamarine Power aimed at developing sites in both the UK and the Republic of Ireland capable of hosting 1,000MW of marine energy capacity by 2020. (aquamarinepower, 2011)

SSE renewables has invested in Aquamarine Power who developed wave power technology that captures energy in near-shore waves and converts it into electricity through their Oyster device. SSE Renewables is also working with Irish tidal energy company, OpenHydro on the Cantick Head Tidal Development. Marine turbines will be deployed in a site off the coast of Scotland, with the potential to develop 200MW of tidal energy.

As the leading generator of renewable energy in Ireland, SSE is committed to building on its existing renewables by developing wave and tidal sites using industry-leading marine technologies. SSE investments help to support research at Ireland’s universities into developing technologies with long term potential. (SSE, 2013)

Bibliography

Weston, C., 2013. Independent.ie. [Online] Available at: http://www.independent.ie/business/personal-finance/latest-news/254-savings-to-be-made-by-switching-gas-and-electricity-29024094.html [Accessed 22 February 2013].

Airtricity, 2012. Changes in Passthrough charges (Oct 2012). [Online] Available at: http://www.airtricity.com/knowledge-base/kb-billing/changes-in-passthrough-charges-october-2012/?section=ROICOMM [Accessed 2 March 2013].

Airtricity, 2013. Airtricity utility solutions. [Online] Available at: http://www.airtricity.com/ie/home/about-us/utility-solutions/ [Accessed 23 February 2013].

Airtricity, 2013. Products. [Online] Available at: http://www.airtricity.com/ie/home/products/previous-offers/biggest-save-bundle-2/ [Accessed 2 March 2013].

aquamarinepower, 2011. Partners and funders. [Online] Available at: http://www.aquamarinepower.com/about-us/partners-and-funders/sse/ [Accessed 25 February 2013].

CER, 2012. Electricity & Gas Retail Markets Report Q1 2012. Paper. DUBLIN: CER The Commission for Energy Regulation.

Citizens information, 2010. Electricity Services in Ireland. [Online] Available at: http://www.citizensinformation.ie/en/consumer_affairs/energy_and_water_services/electricity_services_in_ireland.html [Accessed 2 March 2013].

SSE Ireland, 2013. Meentycat. [Online] Available at: http://www.sse.com/Ireland/EnergyGeneration/KeyProjects/Meentycat/ [Accessed 22 February 2013].

SSE Ireland, 2013. SSE Ireland at a glance. [Online] Available at: http://www.sse.com/Ireland/SSEIrelandataglance/ [Accessed 25 February 2013].

SSE, 2013. Fulfilling the potential of renewable sources of energy. [Online] Available at: http://www.sse.com/WhatWeDo/Wholesale/Generation/Renewables/ [Accessed 23 February 2013].

SSE, 2013. Greener energy. [Online] Available at: http://www.sse.com/Ireland/EnergySupply/GreenerEnergy/ [Accessed 25 February 2013].

SSE, 2013. Marine (wave and tidal). [Online] Available at: http://www.sse.com/CantickHead/WaveAndTidalEnergy/ [Accessed 20 February 2013].

SSE, 2013. Our fuel sources. [Online] Available at: http://www.sse.com/Ireland/EnergySupply/OurFuelSources/ [Accessed 25 February 2013].