Ireland’s Path to Renewable Energy Funding: Evia Insights from CRU’s Proposed PSO Levy for 2024/25
Ireland’s Path to Renewable Energy Funding: Evia Insights from CRU’s Proposed PSO Levy for 2024/25
The Commission for Regulation of Utilities (CRU) has outlined its proposal for the 2024/25 Public Services Obligation (PSO) Levy, emphasising Ireland’s commitment to a sustainable future. This charge, applied to all electricity customers, plays a critical role in supporting renewable energy projects through the Government’s Renewable Energy Feed-In Tariff (REFIT) and Renewable Electricity Support Scheme (RESS).
The Key highlights of the proposal include:
- Support for Renewables:
The 2024/25 levy is dedicated solely to renewable energy generation and will be key in enabling Ireland to meet our national targets. The PSO levy currently supports 4,438.1 MW of renewable generation capacity. - Renewable Energy Mix:
As of April 2024, on average, wind generation and large-scale solar generation contributed 33% and 2% to Ireland’s total electricity generation mix respectively. Solar power contributed significantly to Ireland’s generation mix during specific days in April 2024, most notably, over 430 MW of large-scale solar generation was recorded on the 21st April 2024. - Financial Implications:
The levy has increased 100% on the 2023/24 levy which was set to zero. The total 2024/25 levy will be €225 million. - Impact on Consumers:
Monthly charges are set to increase for all customer categories compared to the zero levy of the previous year, reflecting adjustments in market dynamics and funding needs. Each consumer will see their electricity costs rise marginally from October onwards as a result of the increase in levy.
The PSO’s levy is a key tool that helps Ireland meet its carbon reduction targets. This proactive investment ensures that Ireland remains on track to bolster renewable energy, underpinning economic resilience and environmental sustainability.
It is important to note that the proposed PSO levy is subject to change based on market price forecasts and generation estimates, with the final decision due by the 1st August 2024.
[Source: www.cru.ie ]
