Review of Contracts under the Irish Electricity Market (SEM)
The Irish Electricity Market is based on a central pool system where power stations all bid into a central market. The energy price that power stations are paid changes ½ hour by ½ hour and a forecast is published by the market operator 24 hours in advance. This is known as the System Marginal Price (SMP) and is shown in Blue on the graph below. However, other charges are associated with managing and transporting the electricity from the power station to the end user.
Relationship between Wind and Wholesale Electricity Price
The wholesale unit price of electricity tends to fall in windy periods, so that any electricity supplier may well increase the quoted rate of electricity to take the new import profile into account. The relationship between wind and wholesale prices must be understood to make an informed assessment of the proposed project.