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Burning peat in Ireland: An electricity market dispatch perspective

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  • Tuohy, Aidan
  • Bazilian, Morgan
  • Doherty, Ronan
  • Gallachóir, Brian Ó
  • O'Malley, Mark

Abstract

This paper examines peat power production in Ireland under the three pillars of energy policy--security, competitiveness and environment. Peat contributes to energy security--as an indigenous fuel, it reduces dependency on imports. During a period of low capacity margins, the operation of the peat plants is useful from a system security perspective. Peat generation is being financially supported by consumers through an electricity levy. The fuel also has high carbon intensity. It is not politically viable to consider peat on equal economic criteria to other plant types because of history and location. This paper reviews electricity generation through combustion of peat in Ireland, and quantifies the costs of supporting peat utilising economic dispatch tools, finding the subsidy is not insignificant from a cost or carbon perspective. It shows that while peat is beneficial for one pillar of energy policy (security), the current usage of peat is not optimal from a competitiveness or environmental perspective. By switching from the current 'must-run' mode of operation for peat to the 'dispatched' mode used for the other generation, significant societal savings (in the range [euro]21Â m per annum) can be achieved, as well as reducing system emissions by approximately 5% per year.

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  • Tuohy, Aidan & Bazilian, Morgan & Doherty, Ronan & Gallachóir, Brian Ó & O'Malley, Mark, 2009. "Burning peat in Ireland: An electricity market dispatch perspective," Energy Policy, Elsevier, vol. 37(8), pages 3035-3042, August.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:8:p:3035-3042
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    1. McGrath, Luke & Hynes, Stephen & McHale, John, 2019. "Augmenting the World Bank's estimates: Ireland's genuine savings through boom and bust," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    2. Lynch, Muireann A, 2017. "Re-evaluating Irish energy policy in light of brexit," Research Notes RN20170201, Economic and Social Research Institute (ESRI).
    3. Clancy, John Matthew & Curtis, John & Ó’Gallachóir, Brian, 2018. "Modelling national policy making to promote bioenergy in heat, transport and electricity to 2030 – Interactions, impacts and conflicts," Energy Policy, Elsevier, vol. 123(C), pages 579-593.
    4. Fionnuala Murphy & Ger Devlin & Kevin McDonnell, 2015. "Benchmarking Environmental Impacts of Peat Use for Electricity Generation in Ireland—A Life Cycle Assessment," Sustainability, MDPI, vol. 7(6), pages 1-18, May.
    5. McQuinn, Kieran & Foley, Daniel & O'Toole, Conor, 2017. "Quarterly Economic Commentary, Summer 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20172, June.
    6. Devlin, Ger & Talbot, Bruce, 2014. "Deriving cooperative biomass resource transport supply strategies in meeting co-firing energy regulations: A case for peat and wood fibre in Ireland," Applied Energy, Elsevier, vol. 113(C), pages 1700-1709.
    7. Forbes, Kevin F. & Zampelli, Ernest M., 2019. "Wind energy, the price of carbon allowances, and CO2 emissions: Evidence from Ireland," Energy Policy, Elsevier, vol. 133(C).
    8. Gaffney, F. & Deane, J.P. & Gallachóir, B.P.Ó, 2017. "A 100 year review of electricity policy in Ireland (1916–2015)," Energy Policy, Elsevier, vol. 105(C), pages 67-79.
    9. Gorecki, Paul K. & Lyons, Sean & Tol, Richard S.J., 2011. "Public policy towards the sale of state assets in troubled times: Lessons from the Irish experience," Utilities Policy, Elsevier, vol. 19(3), pages 193-201.
    10. Bazilian, Morgan & Hobbs, Benjamin F. & Blyth, Will & MacGill, Iain & Howells, Mark, 2011. "Interactions between energy security and climate change: A focus on developing countries," Energy Policy, Elsevier, vol. 39(6), pages 3750-3756, June.
    11. Devitt, Conor & Diffney, Seán & FitzGerald, John & Malaguzzi Valeri, Laura & Tuohy, Aidan, 2011. "Goldilocks and the Three Electricity Prices: Are Irish Prices "Just Right"?," Papers WP372, Economic and Social Research Institute (ESRI).
    12. Foley, Aoife & Tyther, Barry & Calnan, Patrick & Ó Gallachóir, Brian, 2013. "Impacts of Electric Vehicle charging under electricity market operations," Applied Energy, Elsevier, vol. 101(C), pages 93-102.
    13. Aparajita Banerjee & Geertje Schuitema, 2023. "Spatial justice as a prerequisite for a just transition in rural areas? The case study from the Irish peatlands," Environment and Planning C, , vol. 41(6), pages 1096-1112, September.
    14. McGrath, Luke & Hynes , Stephen, 2020. "Approaches to accounting for our natural capital: Applications across Ireland," Working Papers 309501, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    15. Clancy, J.M. & Gaffney, F. & Deane, J.P. & Curtis, J. & Ó Gallachóir, B.P., 2015. "Fossil fuel and CO2 emissions savings on a high renewable electricity system – A single year case study for Ireland," Energy Policy, Elsevier, vol. 83(C), pages 151-164.
    16. Janne Järvinen & Matias Laine & Timo Hyvönen & Hannele Kantola, 2022. "Just Look at the Numbers: A Case Study on Quantification in Corporate Environmental Disclosures," Journal of Business Ethics, Springer, vol. 175(1), pages 23-44, January.
    17. Foley, A.M. & Ó Gallachóir, B.P. & McKeogh, E.J. & Milborrow, D. & Leahy, P.G., 2013. "Addressing the technical and market challenges to high wind power integration in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 692-703.

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    Government policy Peat energy;

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