EA Ireland

SEMC publishes High Level Design for the future arrangements of System Services (SSFA) 

Originally published in our May 9th “Industry Update” members newsletter.

SEMC has published its HLD for SSFA, confirming introduction, at a date now unspecified but initially planned for Q2 2024, of short-term markets for some reserve products and possibly ramping.  The timing of the auction will be finalised during detailed design, but the SEMC is leaning towards post DAM and a second physical run closer to real time.  Annual contracts may be made available one year ahead according to TSO anticipation of need and Longer-Term contracts will also be available to certain technologies under a separate framework. SEMC acknowledges the need for a mechanism to enable a transition between the old arrangements and the new. A new Governance Framework will be established along the lines of TSC, the arrangements will be TSO-led, and there is a nod to industry request for investor clarity with the establishment of a consultative forum before the detailed design. It remains to be seen if these arrangements will deliver the value of system services in the hundreds of millions that the TSO has estimated.  There is also a degree of uncertainty on the timeline for the detailed design and the go-live date, the CRU’s 2022 Workplan notes that additional resources will be required and have been requested to deliver on this workstream.