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RE ‘dampens’ Irish power prices

Moody’s says clean power generation expected to grow in Ireland to 2022

RE ‘dampens’ Irish power prices image

Electricity prices in Ireland are expected to stay low by historical standards over the next five years, partly due to the growth of renewable energy, according to a report by Moody’s Investors Service.

The ratings agency said in the report it expects Irish power prices to move within a range of €43 to €48 a megawatt-hour (MWh) over the five years to 2022.

Moody’s assistant vice president and the report’s co-author Alastair Sullivan said: “Low prices will reflect the continued growth of onshore wind power, although this will be partly offset by growth in domestic demand of around 2% each year, a gradual increase in gas and CO2 prices and continued demand from Great Britain for energy generated in Ireland through subsea cables.”

Moody’s expects robust growth in demand for electricity – particularly from data centres – to provide some support to power prices over the coming years. 

Ireland's data centres are expected to need 1.2GW of electricity each year by 2022, Moody’s said.

It added that energy generation supported by renewable schemes is expected to grow by around 13% each year up to 2022, but will start to decline by around 2024 as support for the early projects under the first renewable feed-in tariff scheme starts to expire. 

“Considerable uncertainty around the next generation of renewable energy support schemes remains,” Moody’s said.

Image: Pexels

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