This report was prepared by Baringa for the Sustainable Energy Authority of Ireland (SEAI) to develop a shortlist of policy options for consideration by government, aimed at improving the market environment for corporate power purchase agreements (CPPAs) in the Irish Single Electricity Market.
Key findings – what have we learned?
- A target of 15% of electricity consumption suggests that up to 6 TWh of additional electricity generation by 2030 must be underpinned by CPPAs – this is c.35% of all new generation capacity. This is equivalent to 2.3 GW of onshore wind or over 6 GW of solar PV. The required deployment rate under CPPAs through to 2030 would be broadly equivalent to the average deployment rate under REFIT since 2015.
- CPPA volumes have been growing in Europe, averaging about 5 TWh/year since 2015, with further volumes of fixed price PPAs signed by uilities in some markets since 2017. This activity has not been uniform across Europe, it has been concentrated on several key markets, notably the Nordics, Spain, the Netherlands and GB. A key driver in these markets has been the removal of subsidies – or support in the form of certificates that leave some exposure to wholesale prices, which will not be the case with the RESS in Ireland.
This study was commissioned and fully funded by the Sustainable Energy Authority of Ireland (SEAI), Ireland’s national energy authority investing in and delivering appropriate, effective and sustainable solutions to help Ireland’s transition to a clean energy future. They work with the public, businesses, communities and the Government to achieve this, through expertise, funding, educational programmes, policy advice, research and the development of new technologies. SEAI is funded by the Government of Ireland through the Department of the Environment, Climate and Communications (DECC).
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