Renewables in the Wholesale Market
The Trading and Settlement code sets out a balancing regime for green suppliers of electricity. In order to ensure compliance with the balancing regime, the CER has a green accreditation system in place for trades across the interconnector and requires such licensees to submit annual reports on their balancing position.
Prior to full market opening in 2005 green suppliers had preferential access to all customers. They also had access to first tier top up priced supplies to meet their entire top up requirement. There are two purchase prices for top up namely first and second tier prices. Second tier prices are higher than first tier.
Post market opening green suppliers have lost their advantage to access all customers ahead of other suppliers. The remaining advantage provided to relevant suppliers is access to top up at first tier prices. The CER decision paper Revised Balancing Rules for Licensed Green and CHP Suppliers under the Trading and Settlement Code extends the balancing period for green suppliers from the most recent anniversary date or their supply licence issue date until the start of the Single Electricity Market SEM. They also carry over any imbalance from the previous trading period to the current trading period.
This document also states that green suppliers with a percentage green of 51% or above will qualify for the equivalent percentage of their top-up requirements at first tier prices throughout their current balancing period. The calculation of a suppliers percentage of green is calculated by the SSA. The CER direction Disclosure of Information to Final Customers by Suppliers requires final customers to be informed on their final bills the energy sources used to generate the electricity they have purchased. The main categories of energy sources that may be used for the purpose of fuel mix disclosure are coal, gas, peat, renewables, CHP, heavy fuel oil, distillate oil and others.
Single Electricity Market
We are now moving towards a new all island electricity market trading as the Single Electricity Market (SEM). Further information can be found on the AIP website.