Wind power 'driving down the price of electricity', claims study

A new cost-benefit analysis of the resource shows its net cost each year was less than €1 per person since the year 2000.

Wind power 'driving down the price of electricity', claims study

Irish consumers would be forking out a lot more on energy costs if wind energy wasn't on the grid.

A new cost-benefit analysis of the resource, commissioned by the Irish Wind Energy Association, shows its net cost each year was less than €1 per person since the year 2000.

Wind energy provides around 30% of all energy in Ireland.

Dr Mark Turner from Baringa, who carried out the study, says that because oil and gas prices are so high, wind energy actually works to reduce the overall cost of energy on the consumer.

“While consumers generally understand a portion of the PSO levy on their electricity bill is used to support renewable energy they are less conscious of the role wind energy has in driving down the price of electricity,” he said.

“Every day electricity generators, fossil fuel and renewable, compete against each other in an auction to provide power to the suppliers who sell it on to homes and businesses. The more wind energy on the system, the more it pushes out fossil fuel generators that are much more costly to run.

“We used our advanced power market models to calculate how much wind energy is reducing the wholesale price of electricity and found this ranged from 5% to 20%, depending on the year.

“As more wind energy is added, the savings typically increase, so the largest reductions are occurring right now across the years 2018, 2019 and 2020.”

“These benefits will continue well into the future too, for as long as wind keeps generating energy.”

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited