VPI: Delivering flexibility in Ireland’s energy transition

Ireland’s energy transition is progressing rapidly, with renewable electricity now making up around 40% of generation, according to the Sustainable Energy Authority of Ireland (SEAI). This momentum marks an important shift, but it also presents a challenge: how to ensure the country has reliable, affordable electricity at all times, even when the weather isn’t cooperating.

At VPI, operating across Ireland, the UK and Germany, our role is to anticipate exactly these kinds of challenges as the energy system evolves. Backed by Vitol, a global energy and commodities company, we focus on providing the flexible power that enables renewable electricity to flourish while maintaining the stability people and businesses depend on.

Why flexibility matters

As Ireland becomes increasingly electrified — across heating, transport and data driven sectors — the system must be able to respond quickly to changes in supply and demand. EirGrid expects a 45% increase in electricity demand between 2023 and 2034, alongside a 24% rise in peak demand. These trends underline the importance of having power sources that can be called upon whenever needed.

Flexibility is the backbone of this requirement. Even with strong renewable penetration, wind and solar cannot always produce electricity at the right moment or for the right duration. Ensuring a resilient energy system therefore means integrating technologies that can ramp up and down efficiently to support renewable output.

Different challenges, different solutions

Flexibility is not a single concept; it spans different durations and technologies. In the short term, battery energy storage systems (BESS) play a crucial role. They respond quickly to fluctuations, smoothing the system and keeping it stable. Longer periods of low renewable output — so called “dunkelflaute” — require a different approach.

While long duration batteries and hydrogen based solutions could, in future, provide this sustained flexibility, they are not yet ready at the scale or cost needed. For now, gas fired generation remains the most economic and reliable means of supplying power over extended periods, which is why the Irish government plans to procure 2GW of new gas plants. These assets are essential to ensuring that homes, communities and industries have dependable electricity when renewables cannot meet demand.

VPI’s experience

VPI brings a strong track record in developing, operating and trading flexible power assets. In Ireland, we already operate two 100MW/60MWh BESS sites, providing critical short duration flexibility. We are also nearing completion of our 275MW Castlelost Open Cycle Gas Turbine (OCGT) project, which will add essential fast acting, flexible capacity to the system.
Across our wider portfolio, we are deploying solutions that reflect the different needs of each market. In the UK, we are working with government on one of the world’s largest carbon capture retrofit projects on a combined heat and power plant. This will enable us to deliver low carbon, reliable and flexible generation as the energy transition accelerates. In Germany, we are developing a 1GW BESS pipeline to complement existing renewable capacity and strengthen grid resilience.

Facilitating a system in transition

As Ireland continues its journey toward a more sustainable energy system, its priorities will evolve. New technologies will mature, fresh challenges will appear and opportunities will emerge. What will remain constant is the need for flexibility — both in the physical electricity system and in the approach taken to build and support it.

VPI is committed to contributing to this evolving landscape through practical solutions that work today and adaptable strategies that prepare the system for tomorrow. Supporting renewables with reliable, flexible power is not just an operational necessity; it is central to creating a secure and affordable energy future for Ireland.

Paul Ferry
Head of Origination, VPI

For more information contact www.vpi.energy