Secondary Fuel Compensation & Testing

Secondary Fuel Compensation & Testing

In January 2009, the Commission for Energy Regulation published a Decision 09/001 “Secondary Fuel Obligations on Licensed Generation in the Republic of Ireland” (CER09/001). The purpose of this Decision 09/001 was to strengthen the obligations on generators with respect to their role in relation to security of electricity supply and to introduce a remuneration mechanism for meeting specific obligations.

In August 2009, EirGrid published a consultation paper which discussed the proposed commercial arrangements for compensation of generators when testing on secondary fuel. The responses received to this consultation paper have been considered by EirGrid in conjunction with CER. In light of the responses received to this paper, a clarifications paper was issued in advance of the publication of an EirGrid recommendations paper.

On 7 April 2010, EirGrid published a recommendations paper on the secondary fuel cost recovery mechanisms for licensed generation capacity in the Republic of Ireland.

On 20 July 2010, CER published a Decision paper on Secondary Fuel Testing Compensation. This paper sets out the CER’s Decision with regard to the compensation arrangements for generators that carry out tests where they operate on a secondary fuel. To accompany this Decision Paper, EirGrid has compiled two short documents in relation to secondary fuel testing. These summary documents set out the testing arrangements and the criteria for a successful secondary fuel test and the compensation arrangements for generators.

EirGrid will shortly commence the testing of the secondary fuel capabilities of applicable generators in Ireland. Also, further changes to the Grid Code will be made in the coming months to fully capture all the secondary fuel obligations that were set out in CER 09/001. These changes will be progressed through the Grid Code Review Panel.