Economy

Energy prices fall 30% as wind generates almost one-third of electricity

Close to 10% of wind power lost to power system as grid is not strong enough to accommodate it

Grid weakness means almost 10% of potential wind power is being lost to Ireland's electricity network, according to Wind Energy Ireland. Photograph: Danny Lawson/PA

Dominic Coyle
Tue May 7 2024 - 05:00

* Wholesale energy prices were 30 per cent lower in April compared to the same month last year, according to figures supplied by Wind Energy Ireland. It said the average price of electricity generated last month was €88.52 per megawatt hour, down from €125.57 in April 2023.

The group, which represents companies in the Irish wind power sector, said wind generated 32 per cent of the State’s electricity last month, or 1,076 gigawatt hours. That is about 3 per cent below the figure for April last year.

Wind Energy Ireland chief executive Noel Cunniffe said the average price of wholesale power fell as low as €51.55 per megawatt hour on the windiest days of the month and as high as €111.05. on the calmest.

But he noted that the amount of electricity generated by wind was almost 10 per cent below what it could have produced because the power grid was not strong enough to accommodate the amount being generated. Wind farms are told to reduce the amount of power being generated or shut down entirely when the grid comes under pressure, the group says.

READ MORE

“We need an electricity grid strong enough to decarbonise our energy system,” said Noel Cunniffe, the chief executive of Wind Energy Ireland. “We are calling for cross-party political support at every level for EirGrid and ESB Networks to develop a much stronger grid for Ireland and to deliver critical projects like the North-South interconnector.

“With local and European elections taking place next month, we are encouraging candidates to include planning and grid in their top priorities for election. If we all work together to overcome these challenges, we will deliver cleaner power, cheaper power and lay the foundation for Irish energy independence for our communities.”

Wind energy has supplied 38 per cent of Ireland’s electricity in the first four months of this year, according to Wind Energy Ireland’s figures. The southwest, unsurprisingly, makes the strongest wind power contribution, led by Kerry and Cork which, with Tipperary, produced 30 per cent of all wind power in the State last month. Other counties seeing strong wind power generation include Galway and Donegal.

Mr Cunniffe welcomed last week’s announcement of Ireland’s first designated maritime area plan, which, the group said, marked a historic moment for the development of offshore wind energy in Ireland.

“But to significantly cut our carbon emissions, we need to accelerate the pace at which we build more on and offshore wind farms by modernising our planning system to ensure that planning applications are thoroughly, but quickly, examined,” he said.

* This article was edited on Tuesday, May 7th, 2024

Dominic Coyle

Dominic Coyle

Dominic Coyle is Deputy Business Editor of The Irish Times

LATEST STORIES