Gerald Nash (Louth, Labour)
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46. To ask the Minister for Communications, Climate Action and Environment the projected yield respectively in 2022 and 2023 from the price cap on non-gas electricity generators; if he will outline the formula applied for determining the amount; what the projected estimates provided to him by officials in his Department for the amount to be raised were; when the last estimate was made; what the additional revenue would be if extended to end of 2023, and 2024 respectively; and if he will make a statement on the matter. [41838/23]

Eamon Ryan (Dublin Bay South, Green Party)
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Scenario analysis of the potential revenue from the application of the cap on market revenues was carried out in Q1 2023 and estimated a range of between €80 and €150 million could be raised from the measure. It is important to note however that these estimates reflected the range of uncertainty in the energy markets at that time.

The model’s methodology was based on using estimated output data for generators in Ireland while applying a revenue cap to the respective generator based on their fuel source (wind, coal etc.). Results were then adjusted for hedging assumptions and optimism bias. The model was also subjected to external peer review from the IGEES Network.

The legal basis for the legislation, Council Regulation (EU) 2022/1854, only provides for a cap on market revenues from 1 Dec 2022 until 30 June 2023. The Council Regulation does not provide the basis to extend the cap after this period. Therefore, government decided not to extend the measure beyond June 2023.In addition, a recent review by the European Commission (attached) concluded that a prolongation of the market cap measures is neither indicated nor desirable.

Brian Stanley (Laois-Offaly, Sinn Fein)
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47. To ask the Minister for Communications, Climate Action and Environment the number of generators purchased to provide dispatchable power to the grid when other sources are not supplying sufficient quantities; to set out the fuel type they use; and the cost of purchasing them. [41849/23]

Eamon Ryan (Dublin Bay South, Green Party)
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The Commission of Regulation of Utilities (CRU) which has statutory responsibility to ensure security of supply, has the duty to monitor electricity supplies and to take such measures as it considers necessary to protect the security of supply. It is assisted in its role by EirGrid, the electricity transmission system operator, and my Department.

The CRU currently has a programme of actions underway to ensure the security of our electricity supply over the coming winters. Regular updates on this programme, which includes a range of demand and supply side measures are published on the CRU website.

Electricity supply margins are expected to remain tight throughout this year. The CRU is continuing to work with key stakeholders to implement appropriate mitigation measures to further reduce risks over winter and lower peak demand during this period.

One of the primary measures in the programme is the delivery of approximately 650MW of Temporary Emergency Generation (TEG) capacity at four sites around the country - two sites will be gas fuelled and two will run on Distillate. The TEG units are constrained by both run-hours and operational procedures which will only permit utilisation of the units at times of system stress.

The first of these TEG sites is expected to be operational at the end of October to provide backup capacity during times of system stress. The combination of TEG capacity and new capacity market projects, such as batteries and flexible generation units, are expected to provide an additional 314MW of new generation capacity by the end of December with a further 256MW forecasted to be in place by the end of March.