Brexit Update

Affected Period

Status
Closed

Category
Balancing

Run type

Created
22/12/2020 13:59

Last Updated
22/12/2020 14:03

The Single Electricity Market (SEM), formed in 2007, now efficiently links the island of Ireland to power markets all over Europe through day ahead “market coupling”; the integration of two or more electricity markets through harmonised cross-border arrangements.

With the advent of the new arrangements for the all-island SEM in October 2018, SEM joined EU day ahead market coupling. This enabled harmonised trading of electricity across the European Union.

The SEM is currently coupled to Europe through Great Britain which provides for efficient trading across interconnectors to Great Britain and beyond.

In the event of a no-deal Brexit, the SEM will continue to operate as a single market on the island.

Unless the Brexit transition period is extended beyond 23:00 on 31 December 2020, the following arrangements will apply whether or not a deal is reached: 

·         Forward Transmission Rights products across SEM-GB interconnectors will no longer be available to market participants from 23:00 on 31st December 2020

·         The day-ahead auction on 31 December 2020 and all subsequent day-ahead auctions will resolve the SEM market but exclude the SEM-GB interconnector capacity and thus trading opportunities with GB

·         The opportunities for trading with GB will continue in the intraday auctions (IDA1 and IDA2) through the implicit allocation of SEM-GB interconnector capacity

Irrespective of whether a deal is reached or not, both EirGrid in Ireland and SONI in Northern Ireland will continue to serve customers on a 24/7 basis. Operating and planning the electricity systems in each jurisdiction; managing supply and demand; and maintaining a secure, safe and reliable electricity supply for all consumers.