This paper examines a number of issues associated with the introduction of increasing amounts of wind energy into the Irish electricity network. It draws upon international experience and, in particular, operational data from western Denmark, where wind produces 21% of total electricity consumption. Particular characteristics of the Irish network are identified and a mixture of empiricism and "first principles" analysis is used to derive estimates of the capacity credit of wind plant, the extra costs of operational reserve and the total extra costs of operating with increasing quantities of wind energy.

It is concluded that the total extra cost to the electricity consumer of installing enough wind to provide 10% of electricity consumption may be around €0.7/MWh, but much depends on timing (as wind costs are falling rapidly), and the mix between onshore and offshore wind. The need for market mechanisms to be cost-reflective and promote technical efficiency in electricity networks is emphasised, recognizing the advantages of integrated electricity systems. It is noted that this is not in conflict with the requirements for efficient assimilation of wind energy.

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