Irish wholesale gas prices have fallen 35 per cent since this time last year, according to the latest energy market report from Vayu Energy.

Vayu, which supplies gas to 20 per cent of Ireland’s industrial and commercial market, said the drop in prices was due strong supplies, decreased demand and falling oil prices.

The company, which is backed by mining giant Glencore, also highlighted that gas prices were down 10 per cent on a monthly basis as August is traditionally a period of low demand.

Sterling performing poorly

"Abundant supply continues to be the main driver of gas prices for delivery next month, and there may be a further downside to winter prices as sterling continues to perform poorly against the euro, which is good news for euro-backed traders," Vayu senior energy analyst Gillian Lawler said.

"Updated storage figures show European stocks are extremely healthy," she said, pointing to a recent update from Centrica, which houses 70 per cent of the UK's storage capacity.

However, she noted liquefied natural gas (LNG) deliveries have been disappointing as producers have engaged in competitive tactics to bolster global prices.

Cargos have been diverted from Europe to keep prices elevated to avoid the LNG market crashing altogether, Ms Lawler said.

Qatar has been sending cargos below market value to Japan and India, and the US is sending cargos to non-European markets.

It looks like 16 per cent of global LNG production will have come to Europe by the end of 2016, below some forecasts, she added.

Wind energy

Vayu’s report also highlighted that wind energy accounted for 24 per cent of electricity generation in August.

Wind generation reached a peak of 2,313 megawatts on August 3rd, meaning it had the potential to meet more than 52 per cent of total electricity demand on the island of Ireland at that time.

Some 18,917 gigawatts of wind energy have been generated since the start of the year, representing 21 per cent of total electricity demand on the island of Ireland during this period.

Ireland’s 2020 renewable energy targets commit the State to sourcing 40 per cent of its electricity from renewable sources, such as wind.