Irish wholesale gas prices are down 22% on average in July 2016 compared with July 2015, according to the latest Wholesale Energy Market Report published by Vayu Energy.
Prices are down 7% compared to last month, mainly due to the strength of the euro against sterling. However some price support is coming from unplanned outages and the announcement that the UK’s largest storage facility will be offline until early 2017.
The average wholesale price of electricity in the Irish market so far during July is 3.75c/kWh – a decrease of 27% compared with July 2015 and down 8% compared with last month.
The year-on-year drop in prices is attributed mainly to lower prices for gas, which is the main energy source used to generate electricity in Ireland.
Wind energy has accounted for 19% of overall electricity generation so far in July. Total wind generation capacity in the island of Ireland now stands at 3,083 MW.
Wind energy has the potential to meet over 54% of total electricity demand on the island of Ireland. Some 16,534 gigawatt (GW) of wind energy has been generated since the start of the year, representing 21% of total electricity demand on the island of Ireland during this period.
The average day-ahead price for gas – the contract for gas delivery for tomorrow – was 1.37c/kWh (cents per kilowatt hour) in July, compared to 1.48c/kWh in June.
Vayu Senior Energy Analyst Gillian Lawler commenting on the outlook for the remainder of the year, said: “The market reaction to Brexit continued to be felt in early July on gas prices for delivery to year end, as the pound continued its poor performance against the euro. Traders were anxious to mitigate currency risk amid the uncertainty surrounding the UK’s vote to leave the EU. When the euro strengthens against sterling it makes trading in sterling markets more attractive for those with euro to spend, thereby increasing activity in markets (such as ours).’
Source: www.businessworld.ie
