I 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.