Dáil Éireann Debate, Monday - 11 September 2023
175. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue that would be generated in the specified period 1 July to 31 December 2023 if the cap on market revenues were applied for that timeframe; and if he will make a statement on the matter. [38960/23]
View answer176. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue that would be generated in 2024 if the cap on market revenues were applied from 1 January to 31 December 2024; and if he will make a statement on the matter. [38962/23]
View answer177. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue that would be generated in the specified period 1 July to 31 December 2023 if the cap on market revenues were applied for that timeframe and capped at €100 per megawatt hour for electricity produced for the fuel sources of wind and solar; and if he will make a statement on the matter. [38964/23]
View answer178. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the estimated revenue that would be generated in 2024 if the cap on market revenues were applied from 1 January to 31 December 2024 and capped at €100 per megawatt hour for electricity produced for the fuel sources of wind and solar; and if he will make a statement on the matter. [38966/23]
View answerI propose to take Questions Nos. 175 to 178, inclusive, together.
The Energy (Windfall Gains in the Energy Sector)(Cap on Market Revenues) Bill 2023 will implement part of Council Regulation (EU) 2022/1854 of 6 October 2022 on an emergency intervention to address high energy prices, in particular that which requires a cap on market revenues of specific electricity generators.
The Council Regulation states that theses measures be “urgent, temporary and exceptional" and therefore the cap on market revenues will operate during the period 1 Dec 2022 until 30 June 2023 only. The Regulation does not provide for the cap to extend to periods after this period and projections of potential proceeds for the period from 1 January to 31 December 2024 were not estimated.
In appraising the policy options via a structured multi-criteria-analysis, a €120/MWh cap on wind and solar was deemed appropriate to capture the windfall gains whilst maintaining positive investment signals. The application of a cap below this rate may risk Ireland’s success in securing the investment required in renewable projects to meet our climate targets.
