Sunday 30 July 2017

PSO Levy for Renewables Doubles in Two Years

The PSO Levy is paid to Renewables and Peat generation every year to make up the shortfall between the market price and fixed price set for certain indigenous sources. The Energy Regulator has announced a 20% increase in the PSO Levy for the 2017/18 year. Renewables now makes up 80% of the levy and wind  energy makes up 94% of renewables. So 75% of the PSO Levy now goes to wind generation.

The amount of PSO Levy paid to renewables has doubled in two years from €181 million to € 376 million as renewable generation capacity increased by over 50% from 2,000 MW in 2015 to nearly 3,300 MW in 2017 .  

Renewables generation capacity in blue and PSO Levy in millions in red

Back in 2013, energy costs were a big issue for multinationals in Ireland. Following this recent announcement on the PSO Levy by the energy regulator, it will surely be an even bigger issue.

For domestic / household consumers, they will see a massive 30% increase in the levy.  How long can this go on until there is a backlash ? The Regulator tries to reassure consumers :

Increasing levels of wind generation on the system decrease the wholesale price of electricity, which feeds  through to retail prices.

This claim was debunked on my blog a few years ago : 

The reason for recent falls in wholesale prices was because of the fall in the price of gas. Which was more than offset by the PSO Levy and increases in network and other system costs to pay for all this new renewable infrastructure.


  1. As these piles of junk ,wind turbines, age output drops.Income from output consequently drops. A lot of that output will have no or little value . As there will be no market for it. So the only way that income can increase , as capacity increases, to payback loans is by increasing the PSO or capacity payments. An absurd way to decarbonise the economy.Then again the whole wind program is absurd.

  2. The public don't care. Check out Section 5.1 of the decision for CER/17/241 at

    Just 81 submissions . . . . Why would the CER care?

  3. According to a report in the Mail on-line, Professor Deter Halm of Oxford University is to investigate UK energy bills after prices rose 30%. I* met Mr Helm at an event in Dublin some years ago and he is a realist. Its too late now to rectify the situation,

  4. Report from BBC News that Italy was caught by the Swiss falsifying emissions data.

    Google "Dodge Greenhouse Gas Data threatens Paris Accord" I reckon it not an isolated case.

  5. Now we have the Citizens Assembly rowing in...

    Quangoland rounding up usual suspects/useful idiots to justify more carbon taxes...Thought about submitting but the comments already published show this is a new religion and politicians are right on board with them collecting and divving out the taxes (to their causes) instead of the church. Oh well.

  6. According to this report the Arctic ice is thicker than ever.
    A trip to prove global warming had to be cancelled due to sea ways being blocked by ice. Did anyone consider that the Earth might be getting colder,rather than hotter or what the consequence of that might be?