What Is the Capacity Market and Why It Matters for Ireland’s Energy Security
In recent years, discussions about Ireland’s energy system have increasingly focused on something called the Capacity Market. For most people it’s an unfamiliar term, but its role is vital in keeping the lights on, particularly as our energy system evolves with more renewables and changing demand patterns. Understanding the Capacity Market helps explain how Ireland plans to secure reliable, affordable electricity well into the future. At its core, a Capacity Market is a mechanism designed to ensure that Ireland always has enough electricity generation capacity to meet demand — not just on an average day, but at times when demand is highest or supply from variable sources like wind is low. Unlike traditional energy markets, where suppliers are paid for the actual electricity they produce, the Capacity Market pays generators simply to be available when required to supply power. In other words, it’s about paying for potential, not just production. For example, a power plant might receiv...
