Enel X achieves a 36% market share of demand response in Irish capacity market
Enel X, the Enel Group’s advanced energy services business line, has been reconfirmed as Ireland’s demand response leader following the award of 154 MW of capacity in the latest auction held by EirGrid Group, Ireland’s Transmission System Operator (TSO), between October 1st, 2019 and September 30th, 2020.
The company will manage 36% of demand response in the island’s capacity market over the period.
The 2019-2020 delivery period will be the second for Ireland’s capacity market, which integrates the electricity market of Ireland with the rest of Europe under a new wholesale market arrangement, the Integrated Single Electricity Market (I-SEM). This new market design can create more opportunities for dynamic transactions and trading, with the aim to facilitate the integration of more renewables in the system, and ultimately to drive more efficient wholesale electricity pricing across the region.
Demand response programmes are set up to pay large commercial and industrial (C&I) energy customers, such as manufacturing facilities, data centres, and commercial real estate companies, to adjust their energy demand by either reducing or increasing their power consumption, with the aim to stabilise the grid. The Irish demand response programme pays users year round for being on standby, ready to respond in the event of a grid emergency, as well as providing incremental payments if and when they reduce their energy demand from the grid.
Enel X, through its local subsidiary, has been providing demand response services in Ireland since 2011, and became the capacity market leader in this segment for the inaugural 2018-2019 delivery period.
Enel X is Enel’s global business line dedicated to developing innovative products and digital solutions in sectors in which energy is showing the greatest potential for transformation: cities, homes, industries and electric mobility. Enel X holds the leading position in demand response programmes globally, with over 6 GW of demand response capacity currently managed and assigned in the Americas, Europe, Asia and Oceania.
Enel is a multinational power company and a leading integrated player in the global power, gas and renewables markets. It is one of Europe’s largest utilities and figures among Europe’s leading power companies in terms of installed capacity and reported EBITDA. The Group is present in over 30 countries worldwide, producing energy with more than 89 GW of managed capacity. Enel distributes electricity and gas through a network of over 2.2 million kilometres, and with around 73 million business and household end users globally, the Group has the largest customer base among its European peers. Enel’s renewables arm Enel Green Power already manages around 43 GW of wind, solar, geothermal and hydropower plants in Europe, the Americas, Africa, Asia and Australia.
Tony Whittle, Head of Enel X Ireland said: “With this award, we will keep on contributing to Ireland’s security and sustainability of energy supply in our role as the leading provider of demand response resources. Industrial and commercial businesses are playing an increasingly key role in the active transformation of the island’s electricity system. Our history in - and deep knowledge of - the local electricity market positions us well to facilitate participation of businesses in demand response, which in turn provides them opportunities to create new value.”
UK must stop blundering into high carbon choices warns CCC
The UK Government must end a year of climate contradictions and stop blundering on high carbon choices, according to the Climate Change Committee as it released 200 policy recommendations in a progress to Parliament update.
While the rigour of the Climate Change Act helped bring COP26 to the UK, it is not enough for Ministers to point to the Glasgow summit and hope that this will carry the day with the public, the Committee warns. Leadership is required, detail on the steps the UK will take in the coming years, clarity on tax changes and public spending commitments, as well as active engagement with people and businesses across the country.
"It it is hard to discern any comprehensive strategy in the climate plans we have seen in the last 12 months. There are gaps and ambiguities. Climate resilience remains a second-order issue, if it is considered at all. We continue to blunder into high-carbon choices. Our Planning system and other fundamental structures have not been recast to meet our legal and international climate commitments," the update states. "Our message to Government is simple: act quickly – be bold and decisive."
The UK’s record to date is strong in parts, but it has fallen behind on adapting to the changing climate and not yet provided a coherent plan to reduce emissions in the critical decade ahead, according to the Committee.
- Statutory framework for climate The UK has a strong climate framework under the Climate Change Act (2008), with legally-binding emissions targets, a process to integrate climate risks into policy, and a central role for independent evidence-based advice and monitoring. This model has inspired similarclimate legislation across the world.
- Emissions targets The UK has adopted ambitious territorial emissions targets aligned to the Paris Agreement: the Sixth Carbon Budget requires an emissions reduction of 63% from 2019 to 2035, on the way to Net Zero by 2050. These are comprehensive targets covering all greenhouse gases and all sectors, including international aviation and shipping.
- Emissions reduction The UK has a leading record in reducing its own emissions: down by 40% from 1990 to 2019, the largest reduction in the G20, while growing the economy (GDP increased by 78% from 1990 to 2019). The rate of reductions since 2012 (of around 20 MtCO2e annually) is comparable to that needed in the future.
- Climate Risk and Adaptation The UK has undertaken three comprehensive assessments of the climate risks it faces, and the Government has published plans for adapting to those risks. There have been some actions in response, notably in tackling flooding and water scarcity, but overall progress in planning and delivering adaptation is not keeping up with increasing risk. The UK is less prepared for the changing climate now than it was when the previous risk assessment was published five years ago.
- Climate finance The UK has been a strong contributor to international climate finance, having recently doubled its commitment to £11.6 billion in aggregate over 2021/22 to 2025/26. This spend is split between support for cutting emissions and support for adaptation, which is important given significant underfunding of adaptation globally. However, recent cuts to the UK’s overseas aid are undermining these commitments.
In a separate comment, it said the Prime Minister’s Ten-Point Plan was an important statement of ambition, but it has yet to be backed with firm policies.
Baroness Brown, Chair of the Adaptation Committee said: “The UK is leading in diagnosis but lagging in policy and action. This cannot be put off further. We cannot deliver Net Zero without serious action on adaptation. We need action now, followed by a National Adaptation Programme that must be more ambitious; more comprehensive; and better focussed on implementation than its predecessors, to improve national resilience to climate change.”
Priority recommendations for 2021 include setting out capacity and usage requirements for Energy from Waste consistent with plans to improve recycling and waste prevention, and issue guidance to align local authority waste contracts and planning policy to these targets; develop (with DIT) the option of applying either border carbon tariffs or minimum standards to imports of selected embedded-emission-intense industrial and agricultural products and fuels; and implement a public engagement programme about national adaptation objectives, acceptable levels of risk, desired resilience standards, how to address inequalities, and responsibilities across society.
Drax Group CEO Will Gardiner said the report is another reminder that if the UK is to meet its ambitious climate targets there is an urgent need to scale up bioenergy with carbon capture and storage (BECCS).
"As the world’s leading generator and supplier of sustainable bioenergy there is no better place to deliver BECCS at scale than at Drax in the UK. We are ready to invest in and deliver this world-leading green technology, which would support clean growth in the north of England, create tens of thousands of jobs and put the UK at the forefront of combatting climate change."
Drax Group is kickstarting the planning process to build a new underground pumped hydro storage power station – more than doubling the electricity generating capacity at its iconic Cruachan facility in Scotland. The 600MW power station will be located inside Ben Cruachan – Argyll’s highest mountain – and increase the site’s total capacity to 1.04GW (click here).
Lockdown measures led to a record decrease in UK emissions in 2020 of 13% from the previous year. The largest falls were in aviation (-60%), shipping (-24%) and surface transport (-18%). While some of this change could persist (e.g. business travellers accounted for 15-25% of UK air passengers before the pandemic), much is already rebounding with HGV and van travel back to pre-pandemic levels, while car use, which at one point was down by two-thirds, only 20% below pre-pandemic levels.