New Rules to Boost Irish Long-Duration Battery Storage, Potentially Cut Electricity Prices

New regulations effective next year will encourage investment in long-duration battery storage in Ireland, according to Seán McGrenaghan, finance partner at DLA Piper. This change will provide certainty for businesses and financiers, making them more willing to invest in battery projects.

Increased battery capacity on the Irish system will enable greater use of wind and solar power by storing excess green electricity during low demand and supplying it when needed. This addresses grid bottlenecks that currently force renewable electricity offline, a problem highlighted by Wind Energy Ireland.

McGrenaghan believes more batteries could reduce Ireland's electricity prices, currently the highest in the EU, in the long term. The new Future Arrangement System Services framework will allow battery owners to buy electricity when prices are low and sell when demand is high, aligning Ireland with other European networks like Germany and Britain. Ireland currently has 1,000 megawatts of older, shorter-duration battery capacity, with an estimated eight times that capacity in planning, awaiting these new rules for revenue certainty.