Irish energy costs predicted to remain at historic highs until 2029

There will be “a significant gap in prices” during the summer months, according to a new report

Ireland faces more burning energy prices during the summer months in the next seven years, new research has predicted.

That is because the all-Ireland power grid is predicted to rely on gas when the wind does not blow.

Cornwall Insight which looked at the All-Island power market outlook, suggests between 2022 and 2030, wind and solar will rise from 45% of the electricity generation mix to almost 58%.

However, with solar energy making up 12% of this renewable energy, the summer months, with much heavier reliance on gas, will see prices remain above the historical average until at least 2029.

Niall Durham, a senior consultant at Cornwall Insight, said: “Energy prices are currently at an all-time high with low capacity margins meaning Ireland is having to run expensive and environmentally damaging coal and gas-fired generators to ensure supply, all the while the Russian invasion of Ukraine continues to have a significant impact on gas wholesale prices across Europe.

“As we look over the next eight years, many will be heartened to see our All-Island power forward curve show a steep drop in energy prices as Ireland moves away from gas towards a renewables-led future.”

Last month, Cornwall Insight found the cost of the energy suppliers’ exits from the UK market was more than a third extra this year, compared to 2021.

Mr Durham added: “However while lowering the reliance on gas does mean Ireland is less susceptible to economic and geopolitical changes, the unpredictability of renewables such as wind and solar does still leave the market vulnerable to variations in supply.”

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