NAT GAS PRICES WOUND IRELAND

Critics of Irish wind energy have got their sums wrong; ‘Why exactly have electricity prices increased? The reason is not wind but rather the cost of importing gas’

Joseph Curtin, March 16, 2015 (The Irish Times)

“…[Ireland’s] share of electricity generated from wind has increased dramatically, reaching 19 per cent of the total in 2014. Electricity prices for householders and business have also risen significantly…but correlation does not imply causation…A recent National Competitiveness Council (NCC) report found that Irish electricity prices are among the highest in the EU. Some of the differential can be explained by Ireland’s above average standard of living…Another factor is Ireland’s lower population density…[A greater worry] is that prices have increased more rapidly compared to our EU partners…The reason is not wind but rather the cost of importing gas. Between the summers of 2009 and 2013 wholesale gas prices almost doubled across the EU…In 2014 this trend was reversed [by 14 per cent]… In 2015 electricity prices will decline further, driven again by lower forward gas prices. The correlation is as clear as day…The problem is that more than half of Ireland’s electricity is generated from gas – the fourth highest share in the EU – leaving us more exposed than other countries to gas price increases…” click here for more

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