Norwegian energy group Statkraft has broken into the power market in Ireland.
The company, which already runs hydropower and other renewable generation in the Nordic, German and UK markets, has won a supply licence and a power purchase agreement for the Castledockrell 41 MW windfarm.
The deal comes as Ireland and Northern Ireland prepare for the launch in October of the Integrated Single Electricity Market (I-SEM), a new wholesale electricity arrangement for both countries designed to integrate both with European electricity markets, enabling the free flow of energy across borders.
Statkraft will be provide customers with power purchase agreements where it purchases the power directly from the windfarm. The company will also offer trading services to generators in arrangements with other supply companies to manage the balancing of energy.
The capacity of wind generation is projected to increase significantly in Ireland and this is expected to amplify the need for enhanced balancing and trading services to effectively manage this risk.
Director of Statkraft UK, Duncan Dale, said: “We are excited about this market entry and are pleased by the very positive feedback that we received from windfarm owners who welcome a new service provider. We have significant experience in trading the short-term markets for renewables across Europe and the introduction of ISEM presents us with a trading landscape nearly identical to other markets in which we are already very active. With our expertise in this area, we are confident that we will bring added value and reduced costs to windfarm generators in Ireland.”