Insufficient grid capacity limited the volume of savings accruing to Irish households from the use of renewable energy sources to generate electricity last year, Wind Energy Ireland (WEI) has said, amid a slight decline in the proportion of electricity generated through renewables.
Some 34 per cent of the Republic’s and Northern Ireland’s electricity demands were met from renewable sources like wind turbines last year, a new report from the industry lobby group published on Monday revealed.
Conducted by consultancy firm Baringa on behalf of WEI, the report found that wind generated 13.2 terawatt-hours (TWh) of electricity last year. This was down slightly from 13.7 TWh in 2023 and 14.3 TWh in 2022.
Last year, wind displaced some 2.1 billion cubic meters of fossil gas in the Republic, similar to 2023 and 2022.
However, the total value of the gas displaced declined to €1.2 billion from €1.6 billion in 2023 and €2.6 billion in 2022. This was largely due to steep declines in gas prices in 2024 relative to 2023 and 2022, although prices began to pick up again in the final three months of the year.
March was the strongest month for wind generation last year, WEI said, along with December, which was also the month with the highest gas prices.
How does Ireland fix its dysfunctional rental sector?
Overall, WEI said wind farms in the Republic saved €748 million on gas, which would have been imported from abroad, and a further €286 million in carbon credits.
In Northern Ireland, wind farms saved €213 million from being spent on gas.
The average wholesale price of electricity in Ireland per megawatt-hour was €167.51 in 2024, more than double pre-Covid 2019 levels, according to the report.
“Meanwhile, electricity demand increased by 2 per cent compared to the previous year, likely due to a cold snap early in the month, though demand dipped following Storm Éowyn when many homes and businesses lost power”, WEI said.
Noel Cunniffe, chief executive of WEI, said the further savings could have been made if the electricity grid had sufficient capacity.
“Rather than importing hundreds of millions of euro of gas, Irish wind farms ensured money stayed where it belongs, at home, supporting Irish workers and businesses,” he said.
“However, further savings were prevented due to insufficient grid capacity which meant Ireland was unable to take full advantage of its windiest months.”
Mr Cunniffe said 2024 was the worst year on record for the amount of wind power lost due to grid capacity constraints.
“Every time a wind turbine is shut down because the grid can’t take the electricity, it means higher bills and more carbon emissions,” he said.
“This report further highlights the urgent need to reinforce our grid infrastructure, so that we can get more wind energy on the grid and allow consumers to fully benefit from Ireland’s renewable transition.”
