SSE Thermal, a subsidiary of SSE plc, has received provisional 10-year capacity agreements for its two proposed new-build power stations in Ireland. The low-carbon units located in Tarbert, County Kerry and Platin, County Meath will run on sustainable biofuel and have been awarded the contracts in the T-4 Capacity Auction for the delivery year of 2026/27.
The power stations are aimed at protecting the security of supply in Ireland and will provide flexible backup to the country's growing renewables sector. The units will initially run on Hydrotreated Vegetable Oil (HVO), which is created by processing waste oils to make a fossil-free alternative to diesel that meets EU sustainability standards. Both units have the potential to convert to hydrogen fuel in the future, providing a bridge to a hydrogen-powered future.
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Although still in development and subject to planning permission and final investment decisions, the new power stations are expected to be operational by September 2026. They could subsequently help meet demand for low-carbon hydrogen in Ireland.
The proposed unit at Tarbert represents the next chapter in power generation at the historic site, where SSE Thermal's existing Tarbert Power Station is set to close this year. The location has clear potential for other energy projects, capitalising on its strategic location on the Shannon Estuary.
SSE secured ten-year contracts for 260MW of de-rated electricity generation at the Tarbert new-build unit (€129,000/MW) and 140MW for the Platin new-build unit (€177,000/MW). In addition, SSE Thermal's existing units at Great Island, County Wexford (383MW) and smaller peaker plants at Rhode, County Offaly (93.3MW) and Tawnaghmore, County Mayo (93.7MW) received one-year contracts for 2026/27 at a clearing price of €83,050MW.
SSE Renewables also secured contracts for 30MW of onshore wind capacity at €83,050MW. The System Operators provisionally awarded a total of 7,204MW of capacity contracts to electricity generators, demand side response units, interconnectors and storage at a general auction clearing price of €83,050/MW for existing units.
Catherine Raw, Managing Director of SSE Thermal, said, “Our proposed low-carbon power stations at Tarbert and Platin can play a crucial role in Ireland's net-zero transition and these provisional contracts reflect their potential. Developing hydrogen-ready power stations is one of the first steps towards this and we look forward to progressing both projects into planning this year.” The provisional results are subject to approval by the Regulatory Authorities and are expected to be confirmed in April.
