Ireland to cap low carbon power revenues

Wind and solar power generators face a revenues cap of €120 per MWh

The Irish Government has announced it will introduce a €120 (£103) per MWh cap on revenues made by wind and solar power generators.

Ministers said the cap “takes into account the revenues generators would have expected to earn prior to the increase in gas prices, which was less than €100 (£86) per MWh, and the limited increase in costs incurred by these generators”.

The excess revenue collected will be used to support energy customers, Ireland’s energy department has said.

Ireland’s Minister for Climate, Environment and Communications Eamon Ryan stated: “The Russian invasion of Ukraine has led to unprecedented increases in wholesale natural gas prices, impacting the prices paid by consumers, but also leading to windfall gains in some areas of the energy sector.

“The agreement of the Council Regulation and the government’s approval on its implementation will ensure that windfall gains will be collected and redistributed to support energy consumers.”

Last week, in his Autumn Statement, the Chancellor announced a new 45% tax levied on “extraordinary returns” from low carbon power generation.

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