Clarity on battery policy vital for Irish energy goals

Irish Examiner

2 days ago

Bobby Smith, head of Energy Storage Ireland, highlights a critical need for clear policy and infrastructure development to ensure Ireland meets its renewable energy goals.
Smith has led the advocacy group since its foundation in 2020, leveraging extensive experience from his earlier career at the Commission for Regulation of Utilities and Wind Energy Ireland.
"Energy storage, especially battery storage, is relatively new," Smith says. "But in just five years, we've reached nearly one gigawatt of battery storage capacity across the island."
Energy Storage Ireland was established due to a clear gap in representation for companies active in energy storage. The group now represents about 70 member companies, covering developers, suppliers, consultants, and contractors involved in the energy storage supply chain.
"Batteries complement renewable energy generation effectively," Smith says. "They store excess energy when renewable output is high, typically at low cost, and then supply power back into the grid when renewable output falls.
'We saw more and more wind and solar developers getting involved in storage, but there was no single voice representing them,' he says. 'So we set up Energy Storage Ireland, and I've been leading it since day one.'
From a standing start just a few years ago, the sector now boasts just under one gigawatt of operational battery capacity on the island.
'That's a huge leap,' says Smith, referencing how early reports had only forecast 500MW by this point. 'We've doubled that. It's a real milestone.' Most of the current systems provide fast, short bursts of power, vital for stabilising the grid when demand fluctuates or renewable generation dips.
'They're like the shock absorbers of the electricity system,' says Smith. 'Previously, we relied on fossil fuel generators to do this. But batteries are more responsive, more flexible, and ultimately greener.'
The big players? ESB is now Ireland's largest owner of grid-scale batteries. But there are others - Statkraft Ireland, Greencoat, and a growing pool of private developers. These companies supply balancing services to EirGrid, helping maintain the delicate frequency balance needed to keep the lights on.
The link with renewables is direct. 'Batteries charge when there's surplus wind or solar—when prices are low, and release it when demand peaks. So they're natural partners to variable generation,' says Smith. And while most batteries are currently standalone, co-location with solar and wind farms is growing rapidly.
Where things get complex is around data centres. Public debate has often pointed to them as villains in the climate story, citing claims they could consume up to 30% of Ireland's electricity.
Bobby Smith, head of Energy Storage Ireland.
But Smith urges caution. 'The figure is misleading. It doesn't reflect how many of these centres are also investing in renewables.'
Many data centres now sign long-term Power Purchase Agreements (PPAs) with wind or solar developers — deals that finance the construction of new renewable capacity. But Smith argues we need to go further.
'Most of these deals are based on annual matching. A data centre calculates its annual electricity use and funds a wind farm that produces a similar amount. But that doesn't mean the clean power is available every hour they need it.' Instead, the industry is pushing for 24x7 matching, where every hour of power use is balanced with green generation.
'That's where energy storage comes in,' says Smith. 'To achieve true 24x7 matching, you need batteries to cover the gaps when wind isn't blowing or the sun isn't shining.'
The challenge is infrastructure. Ireland's grid was built in the 1960s, 70s, and 80s.
'It wasn't designed for this. And delays to upgrades, like the North-South interconnector, have dragged on for decades,' says Smith. 'It's becoming a bottleneck.'
Storage can help. 'Instead of building massive new power lines out of Donegal, we could store the energy locally and release it when the grid allows.'
Artificial Intelligence (AI) adds another twist. Unlike traditional data centres that need to be near each other for reliability, AI training centres are more flexible.
'They don't need to run 24/7, and they can be located wherever there's clean power, say near a wind farm in Mayo or solar in Wexford,' says Smith. 'That's a huge opportunity.' But potential doesn't build infrastructure. Money does. And right now, energy storage developers have no guaranteed support.
'Batteries make money through arbitrage, buying cheap power and selling it when prices are high,' says Smith. 'But that's unpredictable. If you want to build a 20-year project, how do you convince a bank to back you?'
Wind and solar developers in Ireland can access the Renewable Electricity Support Scheme (RESS), offering stable revenue over 15 to 20 years. Smith believes storage needs something similar.
'We've got nearly 10 gigawatts of storage in the development pipeline,' he says, referencing an internal industry map of projects at planning, pre-construction, or connection stages. 'But it won't happen without certainty. Investors need it. Lenders need it.'
He says: 'We've come a long way, but we could stall. If the government steps in with the right support, we can build a flexible, secure, zero-carbon grid. If not, we'll miss the window.' While policy support remains a sticking point, developers are already investing heavily. ESB is one of the most active players on the ground.
David Farrell, Head of Onshore Development at ESB Generation Trading, says battery storage is no longer theoretical, it's operational.
'We have 965 megawatts of batteries on the system,' he says. 'ESB owns 300 megawatts of that.' The company now operates five grid-scale projects, the largest being a 150MW battery at Aghada, each capable of discharging for up to two hours.
Farrell outlines four core functions of battery storage. 'First, it allows us to store excess renewable energy, when there's too much wind or solar on the system.
Second, it enables arbitrage, buying electricity when it's cheap and discharging when prices peak. Third, batteries provide capacity, meeting demand instantly when required. And fourth, they deliver system services, stabilising voltage, supporting frequency, and offering fast-response backup.'
He adds that batteries can also be strategically located to ease pressure on congested parts of the grid. 'By placing storage near areas of constraint, we can smooth out power flows and reduce the need for network upgrades.'
These functions, he says, are essential not just for balancing a renewable-powered grid but for decarbonising the broader economy.
'We're moving away from fuel stored in oil tanks and coal yards. Now that storage must exist on the grid, and batteries are part of that solution.'
While most commercial batteries are currently measured in hours, Farrell says that's changing. ESB is already working toward longer-duration assets, four-hour, eight-hour, even 100-hour storage. The aim is to replace peaking plants and reduce reliance on fossil backup.
'The next phase of development will allow us to cover full-day gaps in renewable output,' he says. 'And eventually, we'll need seasonal storage to support demand from sectors like heating and transport.'
He also notes progress in how batteries are being integrated into the grid. 'In the past year, system operators have grown more comfortable dispatching batteries. They've proven to be fast, responsive, and reliable, especially during peak demand.'