Impact of Wind Generation on Wholesale Electricity Prices in 2011

Impact of Wind Generation on Wholesale Electricity Costs in 2011.pdf (size 331.2 KB)
Date: February 2011
Summary: A new study on the Irish electricity system establishes that the growing levels of wind generation on the Irish electricity network are not adding to the wholesale price of electricity.

The report by grid operator EirGrid and the Sustainable Energy Authority of Ireland, uses detailed modelling tools to look at the wholesale prices in the Irish electricity system in 2011, which has a total annual value of almost €2 billion. The analysis shows that wind generation lowers wholesale prices by over €70 million, which almost exactly offsets the costs of the Public Service Obligation (PSO) levy and other costs associated with the generation of wind energy. The study demonstrates that wind energy is not contributing to higher wholesale electricity prices on the Irish electricity system.