Ireland’s renewable sector has seen significant growth in previous years and now energy customers are set to receive €89.10 (£76.53) as part of renewable energy generators payback money, says Cornwall Insight.
This will come to fruition via the Public Service Obligation (PSO) levy that is applied to electricity consumers to cover the costs of renewable support schemes introduced by the government.
One scheme paid for by the PSO levy is the Renewable Energy Feed in Tariff (REFIT). This works as a top up, meaning that if the market falls below the guaranteed price for the electricity generated, they receive an extra payment covered by consumers.
The higher the market prices are, the smaller these top up payments are expected to be.
The Renewable Electricity Support Scheme (RESS) scheme goes one step further. Whilst generators will receive similar top up payments, they will also make payments back if the market price is above the generator’s guaranteed price.
“Last month’s publication of the final decision paper on the PSO levy for the period 1 October 2022 to 30 September 2023 has shown the rewards to consumers of higher market prices,” Andrew Oliver, senior modeller at Cornwall Insight said.
“For the first time since the scheme began in 2010 the PSO levy is negative, meaning consumers will be reaping the benefits of money being returned from renewable generators. With energy bills continuing to spiral and the market in a constant state of volatility, positive news for consumers bills is very welcome.”
According to a report from international advisory firm AFRY, solar growth in Ireland could provide an annual saving of €21 (£18) per citizen.
It modelled three scenarios with different levels of solar and wind to establish the most effective way of meeting the Government’s target of 70% renewable electricity by 2030.
Within these, the highest solar scenario saw a total €106 million (£91.5 million) annual saving, as there are significant benefits from a diversified portfolio of generation assets.
“In these turbulent times it can be easy for politicians and other stakeholders to look towards policy perceived to be a quick solution to increasing bills,” Oliver added.
“However, it is important that the country is not derailed from its net zero goals in favour of increasing fossil fuel use. These figures show that not only is renewable generation a benefit to energy security in the longer-term, as well as good for the environment, but it also provides tangible financial benefits to consumers right now.”
