Carbon prices: a key driver of emissions reduction?

Minister for Communications, Climate Action and Environment Richard Bruton was reported in the Irish Times on 29 November 2018 as saying that Ireland is 95% off meeting its binding EU Greenhouse gas targets.

Ireland’s draft National Energy and Climate Plan 2021-2030 (NECP) is due to be delivered to the European Commission by 31 December 2018, and the full document will be made publicly available in early 2019.

One of the key policy levers to achieve this is via carbon pricing. Across the economy, carbon pricing is split between those activities that fall within the purview of the EU Emissions Trading Scheme (EU ETS). This includes power generation and some industrial activity, and non-ETS activity (largely heating and transport) that is subject to the Carbon Tax. The ETS sector covers around 30% of Ireland’s emissions.

ETS scheme participants must submit European Union Allowances (EUAs) for every tonne of carbon dioxide equivalent (CO2eq) they emit. In response to an oversupply of allowances, 900mn EUAs were withheld in a bid to increase prices.

Related thinking

Regulation and policy

Answers to some FAQs about Brexit

Following the end of the transition period on 31 December 2020 and the signing of the Trade and Cooperation Agreement, aspects of the relationship between UK and the EU in respect of the arrangements for energy trading and cooperation have changed. We set out answers to some Frequently Asked Questions...

Low carbon generation

Analyse thy neighbour: Interconnectors and their importance to future power prices

Whilst we build towards 2021 and post-Brexit energy markets, focus has been applied to how we in GB strive towards net zero ambitions with a more independent policy agenda. However, regardless of future trading arrangements, interconnectors with EU nations will continue to play a pivotal role in driving wholesale power...

Low carbon generation

Demand trends: August sees highest demand since March

This article was originally published on 25 August 2020 in our ‘SEM and commodity pricing report’.   In this week’s blog we take a look at the latest fundamental developments impacting power prices in the SEM. This will see us take a look at wind generation in the SEM this year, while...

Commercial and market outlook

Changes: how our Spectrum service is evolving

This article was originally published on 9 June 2020 in our ‘Energy Spectrum Ireland’ publication.  Since Cornwall Insight launched the Energy Spectrum Ireland Service in 2015, it has been providing insight on key developments in the energy markets in Ireland. With the macro market trends of decarbonisation, decentralisation and digitilisation,...

Low carbon generation

RESS-1 application closing date is further extended

With a lot of uncertainty around the impacts of COVID-19 on global supply chains and renewable project delivery we are starting to see the effects in the Irish Energy market, notably the announcement that prequalification for the Renewable Energy Support Scheme in Ireland will be extended. In December 2019, the...

Energy storage and flexibility

Tootsie slide: Demand drop

Since both governments of Ireland have restricted movement in the light of COVID-19, we have observed changes to working patterns. This has subsequently resulted in a reduction and shift in demand profile for the island of Ireland. This week's blog looks at demand reduction since COVID-19 restrictions have been in...

Energy storage and flexibility

The next episode: Qualification for T-4 Capacity auction

The final qualification results for the upcoming 2023/24 T-4 Capacity Auction were published on the 3 April. In this week’s blog, we consider what these qualification results tell us. Click here to view full article

Low carbon generation

The Pain: SEM prices get low

It is easy to forget that this weekend is Easter where a large part of the country will have a 4-day weekend.  This year the demand levels are still trending down as restrictions due to COVID-19 become ever tighter. So what will this mean for the electricity generators? This week’s...