Wind energy supplied more than a quarter of total electricity demand in Ireland during the first six months of 2015, according to new figures.
The latest Wholesale Energy Market Report from Vayu Energy reveals more than 16,209 gigawatt hours (GWhs) of wind energy has been generated so far. Wind energy-supplied electricity reached a half-year peak of 2,514 MW on January 7th when it accounted for almost 49 per cent of demand at the time.
According to the report, the average wholesale price of electricity in the Irish market for the first six months of 2015 was 5.35c/kWh – down 9 per cent compared with the same period a year earlier.
Joanne Daly, senior energy analyst at Vayu, said the continuing integration of wind energy onto the grid is assisting in reducing the amount of gas-fired generators used to produce electricity, which is typically more expensive than that generated from renewable sources.
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“We are continuing to see wind energy play an ever more important role in meeting Ireland’s electricity demand. This will continue to grow over the coming years in light of an agreement by EU leaders to set a 27 per cent target for energy consumption from renewable sources by 2030. Wind energy will be the primary source of this in Ireland, requiring the installation of substantial additional wind generation capacity between now and then,” Ms Daly said .
Meanwhile, Irish wholesale gas prices on average were 23 per cent higher in June compared with the same month last year. The report’s authors attributed the price rise to a weaker Euro, a higher demand for gas and a series of unplanned outages in the UK and North Sea.
On the supply side, the report reveals that Europe continues to experience a surge in LNG (liquefied natural gas) shipments from the Middle East.
It also shows that inventories in major European storage hubs are at 39 per cent capacity, down 25 per cent compared with the same time last year.
Ms Daly said most facilities have waited for gas prices to drop before replenishing inventories with cheaper Russian oil-indexed gas expected to become available in the third quarter.
She added that while injections usually commence in April of each year, they did not begin to any significant extent until last month.
UK storage stocks
Storage stocks in the UK for example increased from a level of 21 per cent fullness at the end May to 38 per cent by the end of June. This compares with 81 per cent fullness across all sites at the same point last year.
“While prices are expected to remain steady in the short-term, some upward pressure on prices is likely to result from record storage injections in July,” said Ms Daly.
