Ireland unlocks the full potential of battery energy storage systems

The update to Ireland’s System Dispatch and Planning (SDP) introduced on November 13 is likely a breakthrough step toward the full integration of battery energy storage systems (BESS) with the wholesale electricity market. For the first time, storage facilities will be able to participate in real-time not only as providers of grid-stabilizing services but also as active market participants. What does this actually mean?

From stabilization services to active market players

Until now, the role of BESS in Ireland has focused mainly on providing system services, i.e., supporting the growing share of variable renewable energy (VRE). The upcoming change significantly expands this function. Thanks to collaboration between network operators EirGrid and SONI with SEMO, storage systems will gain the ability to actively trade energy in the real-time market, as well as in day-ahead and intraday segments.

For battery operators, this means:

• the ability to charge during periods of high renewable generation and low prices,
• selling energy during peak demand periods,
• signaling preferred operational profiles to the system operator,
• greater revenue predictability and entirely new financial streams.

This is also important for the system operator. Decisions on dispatching resources can now be made based on more complete market data.

An investment boost for the market

The industry expects the SDP update to unlock some previously stalled investments. As Richard O’Loughlin, Deputy CEO of GridBeyond, emphasizes, the BESS market has experienced investment uncertainty due to unclear future revenue streams. Participation in the wholesale market changes this calculation. According to internal GridBeyond analyses, a 10 MW storage facility owner could increase revenues by 12–37% over a decade.

This is a significant incentive in a country where total storage capacity has not yet exceeded 1 GWh, and many projects are stuck at the permitting stage. The new market framework could accelerate system decarbonization and enhance flexibility in the face of rapidly growing renewable energy.

Integrating BESS into the real-time market brings Ireland closer to the models used in the most advanced European systems. At the same time, the SDP reform is part of a broader set of changes. It has long been known that system service procurement mechanisms are set to be refreshed and that a long-term energy storage market is planned, with the first round of tenders expected in 2027.

Storage as the missing link in a zero-emission system

At the heart of the upcoming changes is a strategic approach to electricity system flexibility. With a high level of wind penetration, which in Ireland is often curtailed due to grid constraints, BESS development is becoming a necessity. As O’Loughlin notes: “There’s no point in having huge wind resources if half of it is curtailed. We need the right tools, and energy storage is one of the key ones.”

Ireland’s energy market reform coincides with an impressive pace of solar PV expansion, which has just surpassed 2.1 GW of installed capacity. Over the past three years, the country has more than doubled its PV resources, ranking among the fastest-growing solar markets in Europe.

Data from Solar Ireland show that during peak generation periods, solar energy meets over 20% of national demand. Most installations are large-scale, but the number of prosumers is also growing. Currently, over 155,000 homes, businesses, and communities participate in distributed generation. Further development is only increasing the need for new installed capacity in energy storage systems.