Drop in energy prices expected in first half of next year, Eamon Ryan says

Minister for Transport and Climate Eamon Ryan has said that he expects energy prices to drop for consumers in the first half, or even the first quarter, of 2024.

He said that the wholesale forward prices for the past week or two were lower than they had been for two years, meaning that householders could see a fall in the prices they pay next year.

He said that he did not know by how much they would fall by, but said that wind could also drive prices in Ireland down further.

“It’s 80 pence a term rather than 50, which was a very low cost figure over a 10-year period prior to that. So it’s not going to go right down to that. But it won’t be the exception prices of the last two years.

“There are costs involved in the transition to a new system, we have to build the grid, that’s key, we have to build new interconnectors.

“So we’re building a new interconnector with the UK at the moment, we’re also building one with France. They’re under construction.

“It goes from north Wales to Wexford, it will be open next year, the one in France the year after or probably ’26 by the time it’s energised. They bring huge benefits, but you do have to pay up front.

“And similarly, we need to make a lot of investments in all the EV charging points… But it’s a hell of a lot cheaper than relying on imported fossil fuels. And now, I think it’s only a question of when we make this shift, not if.

“We are going renewable, backed up by battery storage and interconnection, that’ll run our system.

“You can’t put out false promises that it’s going to be low, low, low, low cost, but it will be a hell of a lot lower costs than the fossil fuel alternative, and much more predictable, because while you put the capital investment upfront, the fuel price is free, fuel price is zero for the wind or for the solar.

“And therefore, once you make the capital investment, it’s there for good.”