EirGrid Awards €140.5M DS3 System Services Contracts to Multiple Winners Across 12 Lots

EirGrid plc, the Irish Transmission System Operator (TSO), has awarded contracts for DS3 System Services under Gate 13 (Volume Uncapped) across 12 lots with a total estimated value of €140.5 million. The contracts cover a range of system services including Primary, Secondary, and Tertiary Operating Reserves, Replacement Reserves, Reactive Power, Synchronous Inertial Response, Ramping Margins, and Fast Frequency Response. Multiple winners were selected including Sundew Solar, Electricity Exchange, Grange Backup Power, EnerNOC, Statkraft, and PowerHouse Generation Ireland.

Introduction

EirGrid plc, the Irish Transmission System Operator (TSO) responsible for managing the electricity grid, has conducted an open procedure for the procurement of DS3 System Services under Gate 13 (Volume Uncapped). The procurement covers 12 system services required to maintain the stability and security of Ireland's electricity grid.

The contracts cover a range of services including Primary, Secondary, and Tertiary Operating Reserves, Replacement Reserves (both de-synchronised and synchronised), Steady State Reactive Power, Synchronous Inertial Response, Ramping Margins (1, 3, and 8 hour), and Fast Frequency Response. The total estimated value of the contracts is €140.5 million.

Multiple winners were selected across the 12 lots, including Sundew Solar Designated Activity Company, Electricity Exchange, Grange Backup Power Limited, EnerNOC Ireland Ltd, Derrinlough Wind Farm, Shannonbridge Power (B) Limited, Statkraft Ireland Ltd., and PowerHouse Generation Ireland Ltd. The contracts run from 1 October 2025 to 30 April 2026 (10 months), with an option for extension.

Why This Contract Matters

This contract ensures the stability and security of Ireland's electricity grid by procuring essential system services from a diverse range of providers.

This contract matters because it:

• Supports grid stability: Ensures secure operation of Ireland's electricity system
• Significant value: €140,500,000 estimated value
• Comprehensive scope: 12 system services across multiple lots
• Multiple suppliers: Diverse range of providers selected
• Utilities sector: Procured under EU Utilities Directive (2014/25/EU)
• Flexible procurement: Qualification system for ongoing participation
• Regulatory framework: Governed by SEM-23-103 Decision Paper 3

Contract Timeline

• Previous notice: a6e853a7-89fe-46c8-9094-5beff372e7cb-01
• Contracts concluded: 1 October 2025
• Contract start date: 1 October 2025
• Contract end date: 30 April 2026
• Duration: 10 months
• Extension option: At TSO's discretion in certain defined cases
• Notice published: 2 September 2026 (OJ S 169/2026)

Contract Overview

EirGrid conducted an open procedure under the standard regime, governed by the EU Utilities Directive 2014/25/EU.

Key features include:

• 12 lots: Covering all DS3 System Services
• Estimated value: €140,500,000
• Duration: 10 months (1 October 2025 – 30 April 2026)
• No framework agreement: Direct contracts
• Qualification system: Enables ongoing party participation
• No EU funding
• Utilities sector: Subject to Directive 2014/25/EU
• Volume uncapped: Flexible volume arrangements

Key Contract Details

Detail	Information
Contracting authority	EirGrid plc
Contract title	ENQEIR966 - DS3 System Services – Volume Uncapped – Gate 13
Main CPV	71314000 Energy and related services
Procedure type	Open procedure (Utilities Directive)
Legal basis	EU Directive 2014/25/EU
Estimated value (EUR)	€140,500,000.00
Number of lots	12
Contract duration	1 October 2025 – 30 April 2026 (10 months)
Extension option	Yes (at TSO's discretion)
EU funding	None
Covered by GPA	Yes
Location	Dublin, Ireland (NUTS: IE061)
Subcontracting	No
Strategic procurement	No strategic procurement

DS3 System Services – Gate 13 Lots

Gate 13 covers all 12 services outlined in the Qualification System Briefing Document:

Lot	Service	Winner	Tenders
1	Primary Operating Reserve	Sundew Solar Designated Activity Company	21
2	Secondary Operating Reserve	Electricity Exchange	19
3	Tertiary 1 Operating Reserve	Sundew Solar Designated Activity Company	20
4	Tertiary 2 Operating Reserve	Grange Backup Power Limited	16
5	Replacement Reserve (De-Synchronised)	EnerNOC Ireland Ltd	15
6	Replacement Reserve (Synchronised)	Grange Backup Power Limited	6
7	Steady State Reactive Power	Derrinlough Wind Farm	13
8	Synchronous Inertial Response	Shannonbridge Power (B) Limited	1
9	Ramping Margin 1 Hour	Statkraft Ireland Ltd.	16
10	Ramping Margin 3 Hour	PowerHouse Generation Ireland Ltd	8
11	Ramping Margin 8 Hour	Statkraft Ireland Ltd.	8
12	Fast Frequency Response	PowerHouse Generation Ireland Ltd	16

Winners Summary

Supplier	Lots Won	Size
Sundew Solar Designated Activity Company	1, 3	Large
Electricity Exchange	2	Large
Grange Backup Power Limited	4, 6	Large
EnerNOC Ireland Ltd	5	Large
Derrinlough Wind Farm	7	Large
Shannonbridge Power (B) Limited	8	Large
Statkraft Ireland Ltd.	9, 11	Large
PowerHouse Generation Ireland Ltd	10, 12	Large

About the Contracting Authority

EirGrid plc is the Irish Transmission System Operator (TSO), responsible for managing and operating Ireland's electricity transmission grid. EirGrid ensures the secure and reliable supply of electricity, operating the wholesale electricity market and maintaining system stability.

About the Winners

Sundew Solar Designated Activity Company

• Lots: 1 (Primary Reserve), 3 (Tertiary 1 Reserve)
• Size: Large enterprise
• Location: Dublin, Ireland
• Specialisation: Solar energy and power generation

Electricity Exchange

• Lot: 2 (Secondary Reserve)
• Size: Large enterprise
• Location: Ireland
• Specialisation: Electricity trading and services

Grange Backup Power Limited

• Lots: 4 (Tertiary 2 Reserve), 6 (Synchronised Replacement Reserve)
• Size: Large enterprise
• Location: Dublin, Ireland
• Specialisation: Backup power generation

EnerNOC Ireland Ltd

• Lot: 5 (De-Synchronised Replacement Reserve)
• Size: Large enterprise
• Location: Dublin, Ireland
• Specialisation: Energy management and demand response (part of Enel X)

Derrinlough Wind Farm

• Lot: 7 (Steady State Reactive Power)
• Size: Large enterprise
• Location: Newbridge, Ireland (Bord na Móna)
• Specialisation: Wind energy generation

Shannonbridge Power (B) Limited

• Lot: 8 (Synchronous Inertial Response)
• Size: Large enterprise
• Location: Tullamore, Ireland
• Specialisation: Power generation

Statkraft Ireland Ltd.

• Lots: 9 (Ramping Margin 1 Hour), 11 (Ramping Margin 8 Hour)
• Size: Large enterprise
• Location: Cork, Ireland
• Specialisation: Renewable energy generation and trading (part of Statkraft Group)

PowerHouse Generation Ireland Ltd

• Lots: 10 (Ramping Margin 3 Hour), 12 (Fast Frequency Response)
• Size: Large enterprise
• Location: Lisburn, Ireland
• Specialisation: Power generation and energy services

About the Qualification System

• Purpose: Enables interested parties to submit a response and qualify for award of Contract for provision of DS3 System Services
• Gate 13: Covers all 12 services
• Volume: Uncapped
• Regulatory basis: SEM-23-103 System Services Future Arrangements - Decision Paper 3

Procurement Analysis

• Procedure: Open procedure under the Utilities Directive (2014/25/EU).
• Competition: 1-21 tenders per lot.
• SME participation: All winners are large enterprises.
• Subcontracting: No subcontracting was declared by any winner.
• No EU funding: The procurement was not financed with EU funds.
• No framework agreement: Direct contracts.
• No dynamic purchasing system used.
• Accelerated procedure: No.
• Utilities sector: Subject to EU Utilities Directive.
• Review body: The High Court of Ireland.

Additional Procurement Facts

• The contract is covered by the WTO's Government Procurement Agreement (GPA).
• No EU funds were used for this procurement.
• The estimated value is €140,500,000.
• The contracts run for 10 months (1 October 2025 – 30 April 2026).
• 12 lots cover all DS3 System Services.
• Lot 8 (Synchronous Inertial Response) had the fewest tenders (1).
• Lot 1 (Primary Reserve) had the most tenders (21).
• All winners are large enterprises.
• No subcontracting was declared.
• The procurement is subject to the Utilities Directive (2014/25/EU).

Market & Industry Perspective

The Irish electricity market is undergoing significant transformation with increasing renewable energy integration. DS3 System Services are critical for maintaining grid stability as the share of variable renewable generation grows.

Key trends in this market include:

• Renewable integration: Growing need for system services
• Diverse providers: Solar, wind, backup power, and demand response
• Qualification system: Ongoing supplier participation
• Utilities sector: Subject to Directive 2014/25/EU
• Regulatory framework: SEM decisions and regulatory oversight

Economic Significance

At €140.5 million, this procurement represents a significant investment in grid stability services for Ireland. The contracts will:

• Support grid stability: Ensure secure electricity supply
• Enable renewables: Facilitate renewable energy integration
• Support large enterprises: All winners are large companies
• Provide short-term contracts: 10-month duration with extension options
• Drive competition: 1-21 tenders per lot

Future Procurement Opportunities

With these contracts now in place, future opportunities include:

• Extension options: TSO may extend contracts in certain cases
• Subsequent gates: Future phases of the DS3 Programme
• Related services: Additional system services
• Other markets: Similar system services in other electricity markets

Opportunities for Suppliers

While these contracts are awarded, opportunities remain for energy service providers:

• Extension options: Potential extensions at TSO's discretion
• Subsequent gates: Future DS3 procurement phases
• Qualification system: Ongoing participation possible
• Related services: Other system services and grid support

What Businesses Should Watch

• EirGrid's future procurement notices
• DS3 Programme developments
• Regulatory decisions (SEM)
• Utilities Directive procurement opportunities
• Grid stability and system services market trends

IrelandTenders Procurement Intelligence

This DS3 System Services procurement is a notable example of Irish utilities sector procurement. Several features stand out:

• Scale: €140.5 million across 12 lots
• Competition: 1-21 tenders per lot
• Utilities sector: Subject to Directive 2014/25/EU
• Diverse winners: Solar, wind, backup power, demand response providers
• Qualification system: Ongoing supplier participation
• Short-term: 10-month contracts with extension options

For suppliers, this procurement highlights the importance of:

• Grid services expertise: Understanding of system services
• Regulatory compliance: SEM and utilities sector requirements
• Qualification: Ability to qualify under the system
• Flexibility: Short-term contracts with extension options
• Diverse generation: Solar, wind, backup, and demand response

Supplier Takeaways

• Develop grid services expertise
• Understand regulatory requirements (SEM, Utilities Directive)
• Qualify under EirGrid's DS3 system
• Be prepared for short-term contracts with extension options
• Monitor EirGrid and Irish electricity market procurement opportunities

Key Takeaways

• EirGrid awarded €140.5M DS3 System Services contracts
• 12 lots covering all DS3 services
• Winners: Sundew Solar, Electricity Exchange, Grange Backup Power, EnerNOC, Derrinlough Wind Farm, Shannonbridge Power, Statkraft, PowerHouse Generation Ireland
• Duration: 10 months (1 October 2025 – 30 April 2026)
• 1-21 tenders per lot
• All winners are large enterprises
• No subcontracting declared
• Utilities Directive (2014/25/EU) applies

Conclusion

This DS3 System Services procurement ensures that EirGrid has access to a diverse range of system services from multiple providers to maintain the stability of Ireland's electricity grid. By awarding contracts across 12 lots to eight suppliers, EirGrid ensures supply security and competitive pricing.

The wide variation in competition (1-21 tenders per lot) reflects the different market dynamics for each system service, with some services being more specialised than others. The qualification system enables ongoing participation, providing flexibility for the TSO.

For suppliers, this procurement highlights the importance of grid services expertise, regulatory compliance, and flexible contract models in winning Irish electricity sector contracts.

Frequently Asked Questions

Q: What is EirGrid?

Ans: The Irish Transmission System Operator (TSO), responsible for managing Ireland's electricity transmission grid.

Q: What is the value of the procurement?

Ans: €140,500,000 estimated value.

Q: Who are the winners?

Ans: Sundew Solar, Electricity Exchange, Grange Backup Power, EnerNOC, Derrinlough Wind Farm, Shannonbridge Power, Statkraft, and PowerHouse Generation Ireland.

Q: What services are covered?

Ans: Primary, Secondary, and Tertiary Operating Reserves, Replacement Reserves (de-synchronised and synchronised), Steady State Reactive Power, Synchronous Inertial Response, Ramping Margins (1, 3, and 8 hour), and Fast Frequency Response.

Q: How long are the contracts?

Ans: 10 months (1 October 2025 – 30 April 2026) with extension options.

Q: How many lots are there?

Ans: 12 lots.

Q: How many tenders were received?

Ans: 1-21 tenders per lot.

Q: Is this contract funded by the EU?

Ans: No, the procurement is not financed with EU funds.

Q: What is the review body?

Ans: The High Court of Ireland.

Q: What directive applies?

Ans: EU Utilities Directive 2014/25/EU.

Source: EU Official Journal, Contract Award Notice 604965-2026, OJ S 169/2026, published 2 September 2026.