Why is Ireland's energy and supply cost so high?

Approved DE, DK, IE2025households, Eurostat consumption band DC (2,500 to 4,999 kWh a year) reviewed 2026-10-14

Of the three parts of an Irish electricity bill, the biggest is the one Eurostat calls energy and supply: the cost of the electricity itself, plus what the supplier adds to it. In 2025 a typical Irish household paid about 23 cent for it on every kilowatt-hour. A German household paid about 15 cent and a Danish household under 10. The EU average was about 12.5.

Wholesale electricity is 86% of Denmark's energy and supply charge but 50% of Ireland's

The energy and supply part of the household electricity price, in cents per kWh, for a home using 2,500 to 4,999 kWh a year, split into the average wholesale price over the year and everything else in the charge. The wholesale price is the plain average of twelve monthly figures from Ember; it does not include the effect of suppliers buying ahead, so a single year is only a rough guide. Sources: Eurostat, Ember.

Wholesale electricity is 86% of Denmark's energy and supply charge but 50% of Ireland'sFor each place, bars of the energy and supply charge in cents per kWh for 2025 and 2024, split into the wholesale electricity price and everything else in the charge. The same numbers are in the table below.Wholesale electricity price (average of the year)Everything else in the chargeIreland2025Ireland 2025: wholesale price 11.4c of the 22.9c charge (49.9%)Ireland 2025: everything else 11.5c of the 22.9c charge11.4c11.5c22.9c2024Ireland 2024: wholesale price 10.9c of the 30.0c charge (36.3%)Ireland 2024: everything else 19.1c of the 30.0c charge10.9c19.1c30.0cIn 2025 the wholesale price was 50% of the chargeGermany2025Germany 2025: wholesale price 9.0c of the 14.8c charge (60.6%)Germany 2025: everything else 5.8c of the 14.8c charge9.0c5.8c14.8c2024Germany 2024: wholesale price 7.8c of the 16.5c charge (47.0%)Germany 2024: everything else 8.8c of the 16.5c charge7.8c8.8c16.5cIn 2025 the wholesale price was 61% of the chargeDenmark2025Denmark 2025: wholesale price 8.2c of the 9.6c charge (85.6%)Denmark 2025: everything else 1.4c of the 9.6c charge8.2c9.6c2024Denmark 2024: wholesale price 7.1c of the 10.8c charge (65.3%)Denmark 2024: everything else 3.8c of the 10.8c charge7.1c3.8c10.8cIn 2025 the wholesale price was 86% of the charge
The numbers
PlaceYearCharge (EUR per kWh)Wholesale share (unrounded)
Ireland20250.2290.49886826783114996
Ireland20240.30010.3631206264578474
Germany20250.14810.6058181408957909
Germany20240.16540.47005239822652156
Denmark20250.09640.8556967496542186
Denmark20240.10820.6530961182994455

That is really two questions. Why does the electricity itself cost more in Ireland? And why is more added between the wholesale market and the bill?

The electricity itself costs more

Electricity is bought and sold wholesale before it reaches a supplier. The Economic and Social Research Institute (ESRI) says the energy and supply charge mostly consists of that wholesale cost plus the supplier's mark-up, and it found Irish wholesale prices at the upper end of the countries it compared. By 2023 they were still 30 to 32 per cent above those in Germany, Belgium and the Netherlands. Market data for 2025 tells the same story: the Irish average came to about €114 per megawatt-hour, against about €90 in Germany and about €83 in Denmark.

Gas is the main reason the research points to. Ireland makes close to half of its electricity from gas, and unlike many countries it did not move away from gas after the 2022 price shock: its share stayed at roughly 50 per cent from 2021 to 2023. Gas plants frequently set the wholesale price in the market Ireland shares with Northern Ireland, so a change in the cost of gas passes straight into the price of electricity.

Ireland leans on gas; Germany has no single main source; Denmark leans on wind

Share of all electricity generated in 2024, by fuel. The unshaded remainder is everything else (hydro, oil, waste and so on). Each share is one fuel's generation divided by total generation, both published by Eurostat.

Ireland leans on gas; Germany has no single main source; Denmark leans on windOne stacked bar per place showing the share of electricity generated from gas, coal and peat, biomass, solar and wind in 2024. The bar is out of 100 percent; the unshaded remainder is other sources. The same numbers are in the table below.GasCoal and peatBiomassSolarWindEverything elseIrelandIreland 2024, Gas: 47.9% of electricity generatedGas 47.9%Ireland 2024, Coal and peat: 2.0% of electricity generatedIreland 2024, Biomass: 1.6% of electricity generatedIreland 2024, Solar: 3.5% of electricity generatedIreland 2024, Wind: 37.0% of electricity generatedWind 37.0%49.9% gas and coal42.1% biomass, solar and windGermanyGermany 2024, Gas: 17.6% of electricity generatedGas 17.6%Germany 2024, Coal and peat: 20.7% of electricity generated20.7%Germany 2024, Biomass: 2.1% of electricity generatedGermany 2024, Solar: 14.7% of electricity generated14.7%Germany 2024, Wind: 27.0% of electricity generatedWind 27.0%38.3% gas and coal43.8% biomass, solar and windDenmarkDenmark 2024, Gas: 2.6% of electricity generatedDenmark 2024, Coal and peat: 5.0% of electricity generatedDenmark 2024, Biomass: 16.5% of electricity generated16.5%Denmark 2024, Solar: 10.7% of electricity generated10.7%Denmark 2024, Wind: 58.2% of electricity generatedWind 58.2%7.5% gas and coal85.4% biomass, solar and wind
The numbers (share, unrounded)
PlaceFuelShare
Irelandgas0.4793452466724462
Irelandcoal and peat0.02008757343855491
Irelandbiomass0.016325076952866533
Irelandsolar0.03470942779227181
Irelandwind0.3699135995334023
Germanygas0.1760416646401133
Germanycoal and peat0.20686991862010198
Germanybiomass0.0210171417231994
Germanysolar0.14664918318550843
Germanywind0.270255968280711
Denmarkgas0.025749302514458946
Denmarkcoal and peat0.04956911258184239
Denmarkbiomass0.16528160566389913
Denmarksolar0.10692131833049254
Denmarkwind0.5819435296497398

ESRI also says that tighter capacity margins may play a part, and that the cost of an insecure supply reaches customers through wholesale and capacity prices in ways the data cannot show. We can't put a figure on either.

More is added on the way to the bill

Wholesale is only part of the charge. In 2025 it came to about half of what an Irish household paid for energy and supply, about three-fifths in Germany and more than four-fifths in Denmark. The rest is on the supplier's side of the market: the mark-up, the cost of buying ahead, and anything else in the charge.

ESRI looked at this gap. In many of the markets it studied the gap was wider after 2022, but it was greatest in Ireland. It offers some possible reasons: Irish suppliers may find it harder to hedge risk and so build a larger risk premium into their prices, competition may be weaker, or countries' statistics may not be compiled in exactly the same way. It says it cannot say which of these matters, and that more research is needed.

Timing matters as well. Suppliers buy ahead, which delayed the 2022 spike for Irish households and also made high prices last longer, according to the regulator, the Commission for Regulation of Utilities. ESRI says Denmark has a much shorter lag between wholesale and retail prices. So a single year's comparison needs care: part of what an Irish household paid in 2025 reflects what its supplier paid earlier.

And it is already coming down

The Irish charge fell from about 30 cent in 2024 to about 23 cent in 2025, even though the average wholesale price was a little higher in 2025 than in 2024. That fits what the regulator describes: buying ahead delays a price rise on the way up, and delays the relief on the way down. ESRI notes that Irish wholesale prices fell 14 per cent in 2024, more slowly than the 26 per cent average fall in the eight other countries it compared.

Covers the energy and supply part of the household electricity price (the cost of the electricity itself plus the supplier's costs and margin, as Eurostat reports it) for medium consumers (2,500 to 4,999 kWh a year) in Ireland, Germany and Denmark, with the EU average for context. The baseline is calendar year 2025, with 2024 beside it.

Not covered: the other two parts of the bill (network costs, taxes and levies, which explanation 1 covers); industrial prices; how the price is split between generators, suppliers and traders inside the charge, which is not published.

Percentages marked "derived" are our own arithmetic on published figures, with the formula shown. The wholesale price is the plain average of twelve monthly figures from Ember, not Ember's own annual statistic, and it does not include the effect of hedging.

What is still open is how much of Ireland's higher charge is down to the wholesale price and how much to what is added on top, and ESRI's own view is that the answer needs more research.

  • How much of the gap between the wholesale price and the Irish energy and supply charge is supplier hedging, how much is weaker competition, and how much is down to how the figures are compiled? ESRI sets out these possibilities and says it cannot say which matters most.
  • How much do tighter capacity margins and the cost of keeping supply secure add to Irish wholesale prices? ESRI says these costs reach customers through wholesale and capacity prices and are not readily observable in the data.
  • How far will the Irish charge fall as suppliers' earlier purchases at higher prices work through? The 2025 fall was steep while the wholesale price barely moved.

Behind the article: the working

What you have just read is a summary of the work behind it. Below is that work: the chain of causes the article describes, each factor and link with its evidence and the disagreements about it, the data, and the sources.

The chain at a glance

LinkEffectKind of claimConfidenceStatus
Biomass electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Gas-fired electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Solar electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Coal, lignite and peat generation → Gross electricity productionincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasescompositionestablishedApproved
Wind electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Biomass electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Gas-fired electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Solar electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Coal, lignite and peat generation → Gross electricity productionincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasescompositionestablishedApproved
Wind electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Biomass electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Gas-fired electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Gas-fired electricity generation → Wholesale electricity priceincreasescausal inferencelikelyApproved
Solar electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Coal, lignite and peat generation → Gross electricity productionincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasescompositionestablishedApproved
Wind electricity generation → Gross electricity productionincreasescompositionestablishedApproved
Wholesale electricity price → Energy and supplyincreasesmechanismlikelyApproved
Wholesale gas price → Wholesale electricity priceincreasescausal inferencelikelyApproved
Wind electricity generation → Wholesale electricity pricedecreasesassociationlikelyApproved

The factors

Biomass electricity generation (quantity, GWh) Approved

Electricity generated from primary solid biofuels such as wood, as Eurostat counts it in gross electricity production.

Coal, lignite and peat generation (quantity, GWh) Approved

Electricity generated from solid fossil fuels (coal, lignite and peat), as Eurostat counts it in gross electricity production.

Energy and supply (quantity, EUR/kWh) Approved

The part of the household price that pays for the electricity itself and the supplier's costs and margin (Eurostat's NRG_SUP component).

Gas-fired electricity generation (quantity, GWh) Approved

Electricity generated from natural gas, as Eurostat counts it in gross electricity production.

Gross electricity production (quantity, GWh) Approved

All electricity generated in a country in a year, from every fuel, as Eurostat counts it.

Solar electricity generation (quantity, GWh) Approved

Electricity generated by solar photovoltaic panels, as Eurostat counts it in gross electricity production.

Wholesale electricity price (quantity, EUR/MWh) Approved

The price of electricity traded between generators and suppliers, before network charges, levies and taxes; in Ireland, the all-island day-ahead market price.

Wholesale gas price (quantity, EUR/MWh) Approved

The price of natural gas on wholesale markets, which sets the fuel cost of gas-fired power stations.

Wind electricity generation (quantity, GWh) Approved

Electricity generated by wind turbines, as Eurostat counts it in gross electricity production.

The links, with their evidence and disagreements

The data

Published values for the factors above, as the source states them (hover a source for the exact table and code).

FactorPlacePeriodValueUnitSource
Biomass electricity generationDE202210663.0GWhEurostat
Biomass electricity generationDE202311117.0GWhEurostat
Biomass electricity generationDE202410803.0GWhEurostat
Biomass electricity generationDK20225660.915GWhEurostat
Biomass electricity generationDK20234977.08GWhEurostat
Biomass electricity generationDK20245837.346GWhEurostat
Biomass electricity generationEU27_2020202288368.777GWhEurostat
Biomass electricity generationEU27_2020202379521.158GWhEurostat
Biomass electricity generationEU27_2020202478715.202GWhEurostat
Biomass electricity generationIE2022507.783GWhEurostat
Biomass electricity generationIE2023347.437GWhEurostat
Biomass electricity generationIE2024514.12GWhEurostat
Coal, lignite and peat generationDE2022179948.015GWhEurostat
Coal, lignite and peat generationDE2023124786.0GWhEurostat
Coal, lignite and peat generationDE2024106333.0GWhEurostat
Coal, lignite and peat generationDK20224429.298GWhEurostat
Coal, lignite and peat generationDK20232525.079GWhEurostat
Coal, lignite and peat generationDK20241750.661GWhEurostat
Coal, lignite and peat generationEU27_20202022448555.61GWhEurostat
Coal, lignite and peat generationEU27_20202023318691.393GWhEurostat
Coal, lignite and peat generationEU27_20202024271891.735GWhEurostat
Coal, lignite and peat generationIE20222366.287GWhEurostat
Coal, lignite and peat generationIE20231210.761GWhEurostat
Coal, lignite and peat generationIE2024632.611GWhEurostat
Energy and supplyDE20240.1654EUR/kWhEurostat
Energy and supplyDE20250.1481EUR/kWhEurostat
Energy and supplyDK20240.1082EUR/kWhEurostat
Energy and supplyDK20250.0964EUR/kWhEurostat
Energy and supplyEU27_202020240.141EUR/kWhEurostat
Energy and supplyEU27_202020250.1246EUR/kWhEurostat
Energy and supplyIE20240.3001EUR/kWhEurostat
Energy and supplyIE20250.229EUR/kWhEurostat
Gas-fired electricity generationDE202283601.0GWhEurostat
Gas-fired electricity generationDE202384525.0GWhEurostat
Gas-fired electricity generationDE202490487.0GWhEurostat
Gas-fired electricity generationDK20221015.068GWhEurostat
Gas-fired electricity generationDK2023999.995GWhEurostat
Gas-fired electricity generationDK2024909.403GWhEurostat
Gas-fired electricity generationEU27_20202022538326.156GWhEurostat
Gas-fired electricity generationEU27_20202023462535.657GWhEurostat
Gas-fired electricity generationEU27_20202024443188.995GWhEurostat
Gas-fired electricity generationIE202216529.627GWhEurostat
Gas-fired electricity generationIE202315350.675GWhEurostat
Gas-fired electricity generationIE202415095.854GWhEurostat
Gross electricity productionDE2022578948.015GWhEurostat
Gross electricity productionDE2023522871.0GWhEurostat
Gross electricity productionDE2024514009.0GWhEurostat
Gross electricity productionDK202235332.288GWhEurostat
Gross electricity productionDK202334068.992GWhEurostat
Gross electricity productionDK202435317.578GWhEurostat
Gross electricity productionEU27_202020222823534.814GWhEurostat
Gross electricity productionEU27_202020232760944.843GWhEurostat
Gross electricity productionEU27_202020242828734.401GWhEurostat
Gross electricity productionIE202234045.217GWhEurostat
Gross electricity productionIE202331852.979GWhEurostat
Gross electricity productionIE202431492.654GWhEurostat
Solar electricity generationDE202261022.0GWhEurostat
Solar electricity generationDE202364299.0GWhEurostat
Solar electricity generationDE202475379.0GWhEurostat
Solar electricity generationDK20222384.925GWhEurostat
Solar electricity generationDK20233658.14GWhEurostat
Solar electricity generationDK20243776.202GWhEurostat
Solar electricity generationEU27_20202022205943.21GWhEurostat
Solar electricity generationEU27_20202023249294.334GWhEurostat
Solar electricity generationEU27_20202024303976.869GWhEurostat
Solar electricity generationIE2022148.665GWhEurostat
Solar electricity generationIE2023646.482GWhEurostat
Solar electricity generationIE20241093.092GWhEurostat
Wind electricity generationDE2022124816.0GWhEurostat
Wind electricity generationDE2023141764.0GWhEurostat
Wind electricity generationDE2024138914.0GWhEurostat
Wind electricity generationDK202219048.16GWhEurostat
Wind electricity generationDK202319434.295GWhEurostat
Wind electricity generationDK202420552.836GWhEurostat
Wind electricity generationEU27_20202022422655.68GWhEurostat
Wind electricity generationEU27_20202023480450.777GWhEurostat
Wind electricity generationEU27_20202024490037.497GWhEurostat
Wind electricity generationIE202211393.491GWhEurostat
Wind electricity generationIE202311863.352GWhEurostat
Wind electricity generationIE202411649.561GWhEurostat

Sources

thenewsis. Version 1, published 2026-10-16. All explanations.