- Irish government to introduce a cap on revenues.
- Excess revenue collected will be used to support energy customers.
The Irish Government has announced it will introduce a €120 per MWh cap on revenues made by wind and solar power generators.
Ministers said the cap “takes into account the revenues generators would have expected to earn before the increase in gas prices, which was less than €100 per MWh, and the limited increase in costs incurred by these generators”.
Ireland’s energy department has said that the excess revenue will be used to support energy customers.
Ireland’s Minister for Climate, Environment and Communications, Eamon Ryan, stated: “The Russian invasion of Ukraine has led to unprecedented increases in wholesale natural gas prices, impacting the prices paid by consumers, but also leading to windfall gains in some areas of the energy sector.
“The agreement of the Council Regulation and the government’s approval on its implementation will ensure that windfall gains will be collected and redistributed to support energy consumers.”
Last week, in his Autumn Statement, the Chancellor announced a new 45% tax levied on “extraordinary returns” from low carbon power generation.