Sir, – To understand the impact wind energy is having on electricity bills (Letters, February 9th) the simplest thing to do is to look at what prices would have been without Irish wind farms. Last month the average price of a unit of electricity on the wholesale market was €162.16. But on the days with very little wind and when we were forced to rely almost entirely on fossil fuels, average prices rose to €196.41.
In comparison, on the days with the most wind power, prices fell to an average of around €134.
Put more simply, when a wind turbine generates power it is pushing the most expensive gas generators off the electricity grid and helping to pull down prices.
Without wind power, your letter writer’s electricity bill – already far too high – would be even higher.
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Every day Irish wind farms are protecting consumers while also cutting the carbon emissions that are driving the climate emergency. The best way out of this energy crisis is to accelerate the development of renewable energy, to ensure more of our power is provided here, at home, creating Irish jobs, supporting local communities and helping to push down prices. – Yours, etc,
JUSTIN MORAN,
Director of
External Affairs,
Wind Energy Ireland,
Naas,
Co Kildare.
Sir, – Higher electricity bills are due to the impact and high volatility of gas prices.
Since August 2021, wholesale gas prices have ranged from €50 MWh (megawatt hour) in August 2021 and peaking at over €320 MWh and are now thankfully levelling off.
However, despite the recent drop in gas prices, suppliers continue to pay the cost of hedges made months ago against future gas volatility.
This lag between real-time gas price and hedged gas prices benefits customer in times of rising prices through dampened electricity costs but during times of decreasing gas prices can result in a slower reduction in electricity prices. The overall effect is a smoothening of high and low prices.
While renewable technologies, such as wind farms, bring down the total cost of electricity, electricity bills will see increased benefit when there is a much higher share of generation from renewables (80 per cent in the climate action plan by 2030).
This calls for further investment into a range of renewable technologies and services that reduce peak demand.
In the meantime, Ireland is a leader in the supports provided to electricity customer, not least the commitment by electricity suppliers through the Energy Engage Code (eaireland.com) to never disconnect a customer that engages with them. – Yours, etc,
DARA LYNOTT
CEO,
Electricity Association
of Ireland,
Dublin 2.