I-SEM will continue in no-deal Brexit

The Irish all-island integrated single electricity market (I-SEM) will continue even if the UK leaves the EU without a withdrawal agreement, but cross-border trade with Great Britain would become much less efficient, the Irish and Northern Irish energy regulators have said.

All-island trade within I-SEM would continue as is, the regulators said. But trade between I-SEM and Great Britain "will almost certainly be less efficient than today as Great Britain will no longer be part of the pan-EU market and the SEM will become an isolated market."

The day-ahead market would likely be local only in the event of a hard Brexit, Irish transmission system operator (TSO) Eirgrid said. The TSO will work on a new cross-border arrangement, "but we assume this will not be implemented on day 1", it said in a presentation to stakeholders.

The intra-day market and balancing market would continue as is, with cross-border trade continuing unaffected. This could lead to some liquidity being drawn to the intra-day auctions, Eirgrid said.

The Irish T-4 capacity market auction for 2022-23 will go ahead as planned on 28 March. Contracts awarded will be honoured regardless of any type of Brexit, the regulators said.

The UK government last year said that contingency plans were being drawn up for a separate Northern Ireland power market, but the UK energy minister and Eirgrid both expressed confidence it could continue post Brexit.

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