Ireland’s renewable energy sector has seen significant growth in previous years and energy customers are now set to receive €89.10 (£76.53) as part of the energy generators refund money renewable, according to Cornwall Insight.
This will materialize through the Public Service Obligation (PSO) tax which is applied to electricity consumers to cover the costs of renewable energy support programs put in place by the government.
One of the programs financed by the OSP tax is the REFIT (Renewable Energy Feed in Tariff). It works as a top-up, which means that if the market falls below the guaranteed price for the electricity produced, they receive an additional payment covered by consumers.
The higher the market prices, the lower these additional payments should be.
The Renewable Electricity Support Scheme (RESS) goes even further. While producers will receive similar top-up payments, they will also make refunds if the market price is above the producer’s guaranteed price.
“Last month’s release of the final decision document on the OSP tax for the period October 1, 2022 to September 30, 2023 showed the benefits to consumers of higher market prices,” said Andrew Oliver, senior modeller at Cornwall. Insight.
“For the first time since the program started in 2010, the OSP tax is negative, meaning consumers will reap the benefits of money from renewable generators. With energy bills continuing to soar and a market in a constant state of volatility, positive news for consumer bills is welcome. »
According to a report by international consultancy AFRY, solar growth in Ireland could save €21 (£18) annually per citizen.
It modeled three scenarios with different levels of solar and wind power to establish the most efficient way to meet the government’s target of 70% renewable electricity by 2030.
Of these, the highest solar scenario saw a total annual saving of €106m (£91.5m), as there are significant benefits from a diverse portfolio of generation assets.
“In these turbulent times, it can be easy for politicians and other stakeholders to turn to politics seen as a quick fix to rising bills,” Oliver added.
“However, it is important that the country does not derail from its net zero goals in favor of increasing use of fossil fuels. These figures show that not only is renewable energy generation a benefit for long-term energy security , as well as for the environment, but that it also delivers tangible financial benefits to consumers now.