The Transmission System Operators of Ireland and Northern Ireland EirGrid and SONI Limited respectively, have awarded a demand response contract to EnerNOC.
EnerNOC, an Enel subsidiary, has been tasked to deliver 217MW of demand response capacity in Ireland's first and recently launched capacity market auction.
The new capacity market starts at the end of May 2018.
Large energy consumers including manufacturing facilities, data centers and commercial real estate companies will be awarded with energy credits for reducing energy use during times when demand is high.
The aim is to stabilise the energy network and allow an increase in integration with distributed renewable energy generation resources.
"Demand response provides greater grid flexibility, stability, and more efficient use of power infrastructure, with a view to help maintain electricity prices as low as possible for all consumers," according to a statement.
EirGrid has plans to increase its portfolio of demand response capacity under efforts to deliver 40% of Ireland’s generation from renewable resources.
The launch of the capacity market is in line with the EU Target Model for Electricity Integration, which is designed to integrate the electricity market of Ireland and the rest of Europe under a new wholesale market arrangement named the Integrated Single Electricity Market.
Francesco Venturini, Head of Enel X. “This market is going through a rapid transformation while adapting to the EU electricity system and our strong track record of delivering a wide variety of demand response products and grid services puts us in a unique position to help our Irish customers address this change and secure the most value from their participation in the demand response programme.”
With the awarded capacity, Enel will hold 40% of the total demand response market in Ireland.
Enel says it forecasts the size of its virtual power plant in the Irish market to grow by 60% year-over-year to the awarded 217 MW, from the current 136 MW.