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Electricity Generation

Dáil Éireann Debate, Wednesday - 10 March 2021

Wednesday, 10 March 2021

Questions (201)

Bernard Durkan

Question:

201. Deputy Bernard J. Durkan asked the Minister for the Environment, Climate and Communications the way in which the cost of producing electricity here compares with other countries throughout Europe with particular reference to maintaining competitiveness throughout industry; and if he will make a statement on the matter. [13235/21]

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Written answers

The Programme for Government commits to providing the reliable supply of safe, secure and clean energy in order to deliver a phase-out of fossil fuels. This means Ireland must deliver on its commitment to reach 70% renewable electricity by 2030 and that this must be planned and delivered in a cost-effective way that minimises costs to consumers. The SEAI report on Electricity and Gas Prices in Ireland (Jan – June) 2020 sets out the breakdown of electricity prices based on energy & supply, network costs, renewable taxes, capacity taxes, environmental taxes and other costs. Section 4.1.6 on page 40 of the report provides a breakdown of costs to non-households (business).  Table 28 shows the breakdown of these costs for all EU member states in terms of cent per kilowatt hour. The report is available online at https://www.seai.ie/publications/Price-Directive-1st-Semester-2020.pdf  

The SEAI, in its Energy in Ireland 2020 report, available at https://www.seai.ie/publications/Energy-in-Ireland-2020.pdf , shows in Table 22, Page 61, that electricity prices to Irish industry rose by 2% in real terms between 2015 and 2019. The fuel mix for electricity generation is one factor that has a key bearing on the variation in the price of electricity. I n the EU, Ireland has a high overall dependency for electricity generation on fossil fuels, at 69%.  

Since 2015, energy prices in Ireland have increased by 6.7% in real terms, compared with an average increase of 1.6% in OECD (Organisation for Economic Co-operation and Development) Europe, and a 1.4% decrease in the United States over the same period based on data from the International Energy Agency (IEA). In 2019, overall energy prices in Ireland were 4.3% higher than in 2018, compared with an increase of 1.1% in OECD Europe and a 3.9% decrease in the US.

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