VPI: Delivering flexibility in Ireland’s energy transition

VPI is a leading power company operating in Ireland, the UK, and Germany. Backed by Vitol, a global energy and commodities company, VPI sees its role in the energy system as anticipating and tackling challenges that emerge as the energy transition unfolds, writes Paul Ferry, Head of PowerGen Origination, VPI.

With renewable energy now accounting for around 40 per cent of electricity generation, according to the Sustainable Energy Authority of Ireland (SEAI), Ireland’s energy transition is well underway. But, given the variable nature of renewable energy and increasing concerns about energy security and affordability, a key challenge exists: How do we ensure we have reliable power to live our lives and drive economic growth when the weather does not always provide what we need?

The answer to that is flexibility. Providing flexible, reliable power that can be ramped up and down to complement renewable energy is essential for ensuring we have the energy we need for people and businesses to thrive. This is especially important as Ireland becomes increasingly a data-driven economy, and sectors such as heating and transport continue to electrify. EirGrid forecasts a 45 per cent increase in demand from 2023 to 2034, with the peak power requirement expected to rise by 24 per cent during the same period.

To address flexibility, we need to consider both short-term and long-term durations. Currently, battery energy storage systems (BESS) are vital for managing short-term energy gaps. For longer periods, flexibility could be provided by various technologies, such as long-duration batteries or hydrogen, but these are not yet available at the necessary cost and scale. Today, the most economical and technically feasible option for providing flexible power during periods of ‘dunkleflaute’ is gas-fired generation. That is why the Irish government plans to procure 2GW of new gas power stations to ensure a reliable energy supply.

VPI has a proven track record in developing, building, operating and trading flexible power. For example, in Ireland, we own and operate two 100MW/60MWh BESS projects and are close to completing our 275MW Open Cycle Gas Turbine (OCGT) Castlelost project.

In the UK, we are a leading power generator and are working with the government to pioneer one of the world’s largest carbon capture retrofit projects for a combined heat and power plant. This would enable us to deliver low-carbon, flexible and reliable power. We are also developing a 1GW BESS pipeline in Germany to complement significant levels of renewables on the system.

These are critical solutions for today’s challenges. But as the energy transition progresses, priorities will continue to evolve and new challenges will emerge. The good news is that opportunities for new, more sustainable sources and technologies will also emerge.

T: 0858337639
E: pferry@vpi.energy
W: www.vpi.energy