Irish energy prices are set to fall further in 2024, but are expected to remain higher than pre-crisis levels for the foreseeable future.

Research group Cornwall Insight has updated its 2024 power market forecast to include an 18% drop in prices due to high gas storage levels in the EU.

Gas reserves in the EU exceeded initial expectations for 2024, resulting in reduced demand for gas during the summer refill period and subsequently leading to a decline in prices.

ADVERTISEMENT

This adjustment sharply contrasts with the projections in Cornwall Insight's Power Market Outlook for Q3 2023, which had anticipated prices reaching three times the average prior to 2021.

Initially, the energy consultancy's report had foreseen an average of €186.62/MWh for Q3, followed by €152.54/MWh for Q4, indicating a decrease of over 34MWh.

Consistent decrease

Cornwall Insight anticipates a consistent annual decrease in power prices, with the lowest average expected to be €106.09/MWh in 2028, after which a gradual increase is projected.

Senior modeller at Cornwall Insight Sarah Nolan said: “While Irish energy prices will likely remain higher than pre-crisis levels for the foreseeable future, Ireland’s renewable ambitions are pushing towards a more stable and sustainable energy future.

"The energy landscape is changing and while the road ahead may not be smooth, Ireland is firmly on the right track.”

Earlier this week, Electric Ireland announced it was cutting its electricity rates by 8% from 1 March, as well as reducing its standing charge.

Its gas prices are falling by 7%, as well as reductions to the standing charge. Other energy suppliers are expected to follow suit within the coming weeks.