Irish electricity prices were eighth highest in Europe in 2024

James Cox

Electricity prices in Ireland were the eighth highest in Europe in 2024.

However, analysis by the Economic and Social Research Institute (ESRI) found they would have been the most expensive in in the bloc if it hadn't been for government energy credits and VAT cuts.

The study found Irish electricity prices were steadily among the most costly in Europe between 2018 and 2024, with network costs being paid by households increasing in order to pay for emergency electricity generation.

Other findings include:

• Network costs have risen in recent years, particularly in 2022 and 2023, as the procurement of emergency generation was financed by increased network charges. These increases in cost have been small, relative to the impact of rising fuel prices.
• Future network investments will increase costs to consumers. While notable, the magnitude will be less than that experienced in recent times. The CRU predicts that annual household bills may rise by €59–€106 by 2029/30. The way in which network tariffs are recovered may require reform to incentivise efficient system development.
• Renewable generation increasingly acts as a hedge against high wholesale prices due to changes in the design of renewable support schemes which came into place in 2019. Under this scheme, renewable generation pays a rebate back to consumers when market prices are high. In 2022/23, these rebates were greater than the cost of the scheme overall, meaning households received a credit of €89 via the 'PSO' item on their electricity bill.

Dr Niall Farrell, Associate Research Professor at the ESRI, said: “Irish electricity prices tend to track trends in natural gas prices. While many countries have reduced their reliance on gas-fired generation in recent years, Ireland has been less able to diversify away from gas-fired generation. Renewables provide an important hedge against fuel price volatility.”

Dr Muireann Lynch, Senior Research Officer at the ESRI, added: “This paper charts electricity price trends in Ireland and Europe. While interventions such as energy credits have alleviated much of the burden for Irish consumers, Irish electricity prices have been among the most expensive in Europe during the 2018–2024 period of analysis.”