New entrant in Ireland's electricity market

Irish households are still paying double for energy that they did before the Russian invasion of Ukraine.

Yuno Energy, a subsidiary of Prepay Power has begun supplying electricity to households in Ireland becoming the first new entrant to the Irish market in more than three years.

For new customers on a fixed tariff, the company's unit rate is just over 38 cent per kWh for the year, making Yuno the cheapest supplier on the market for anyone using an average amount of electricity. However, Irish consumers are still paying well above the EU average of 26 cent per kWh.

The company has been testing its service amongst a number of customers over recent weeks and is now launching an advertising campaign to promote the service. It is understood the company is also looking at supplying gas in the future.

Daragh Cassidy, Head of Communications at energy price comparison website bonkers.ie said the move was good news for consumers. “However the cost of electricity on the Irish wholesale market, from where all suppliers ultimately buy electricity for sale on to households, is still over double normal levels and is much higher than in most other EU countries. So there is a limit to how far prices can drop for the time being," he said.

“Hopefully this will force other suppliers to respond over the coming weeks and bring some much-needed competition back into the market."

Meanwhile, the Norwegian renewable energy firm Statkraft has purchased a portfolio of operating onshore wind farms in Ireland from London-listed investment firm The Renewables Infrastructure Group (TRIG).

The assets located in the Republic of Ireland have a total capacity of 35 megawatts.

“We see that onshore wind farms are already making a significant reduction to the cost of the current high electricity prices and reducing Ireland’s greenhouse gas emissions,” said Kevin O’Donovan, managing director of Statkraft Ireland.

Statkraft is also currently looking to build offshore wind projects off the coast of Ireland but planning delays and a lack of infrastructure have hindered many developers in the industry.

The latest acquisition is part of Statkraft’s strategy to further strengthen its position in Europe. In 2021, Statkraft added 43 operational wind farms in Germany and France, with a combined capacity of almost 350 MW, to its European onshore wind portfolio.