Solar continues to power growth in the renewable industry both domestically and worldwide

Irish Examiner

2 days ago

The Irish solar energy market has bolstered the renewable energy sector, which has otherwise been mired by planning delays and economic volatility in recent years, and the momentum is set to continue during 2025.
Solar prices are expected to decrease by another 25% this year, while battery innovations transform energy storage possibilities, according to analysis from PwC.
Solar has become a go-to climate action measure for both industry and households to save costs and be more sustainable as the minimum cost for PV systems comes to around €7,000 while grants cut the cost further.
Despite growing demand for solar, the Irish market has proven to be a difficult one for developers as it offers among the highest developer risk profiles and longest development timelines of any territory, PwC found. This is reflected in auction prices around €104/MWh — significantly higher than European averages of €60-70/MWh.
Under the current circumstances, Ireland risks missing its 2030 solar PV climate target of 8 GW by up to 2.9 GW, according to a report published by the Sustainable Energy Authority of Ireland.
Ireland surpassed 1GW of solar generation connected to the grid for the first time last year and A&L Goodbody, a corporate law firm, said it expects solar generation to 'continue to expand rapidly with over 959 MW of solar projects successfully receiving offers' in the Government's fourth Renewable Energy Support Scheme (Ress) auction RESS 4. This would represent over 70% of the total offer quantity in that latest round.
Meanwhile, Clonfad Solar Farm, expected to be the largest solar farm in Ireland, is currently under construction in Co. Westmeath. The project is led by Europe's largest generator of renewable energy, Statkraft, and has a potential capacity of 175 MW when operational.
The development will consist of 300,000 solar panels and will create more than 250 jobs during the construction, operation and maintenance phases of the proposed project.
Another European renewable industry titan, Ørsted, began construction of the first phase of its first Irish solar farm last year. Garreenleen Solar Farm is located just outside Carlow town and has the potential to power more than 29,000 homes with clean energy through 81 MW capacity. Phase 1 is set to become operational in 2026.
Ørsted currently operates 378 MW of onshore wind across the island of Ireland, producing enough green power for over 246,000 homes. Ørsted's Irish headquarters are based in Cork City, where it employs over 100 people.
Elsewhere, Power Capital Renewable Energy's Lysaghtstown Solar Farm in Cork is also under construction. The project has the capacity for 131 MW and is set to be operational this year.
Separately, Cork is set to see a significant jump in solar capacity, as several new farms are planned for this year. In one example, a 100 MW solar farm is set to be the largest in the region, according to Irish Wind, a firm that specialises in wind turbine and solar PV installations. This promised solar farm is set to provide power to thousands of homes and boost Cork as a major economic hub.
However, solar development in Ireland goes hand-in-hand with battery storage systems. Ireland only gets so much sunlight throughout the year.
Ireland hit a new high for the level of energy produced by solar power in March, according to EirGrid. Without battery storage systems in place though, excess green energy produced on months like these will be lost.
Rob Costello, partner, PwC.
Further analysis from PwC partner Rob Costello signalled battery storage developers 'initially found Ireland's clear regulatory framework attractive,' with companies like Hanwha Energy Corporation investing over €300m.
'However, recent changes to market support mechanisms have created uncertainty around revenue streams, challenging project bankability,' he said.
One solution to the battery storage issue could be the use of so-called hybrids. The Commission for the Regulation of Utilities' (CRU) second Hybrids Consultation closed in April and a successful outcome will allow onshore technologies to co-locate behind a single connection point.
Hybrids enable storage of surplus solar energy for use during peak demand periods, or to complement daytime solar with nighttime wind generation, according to the Irish Solar Energy Association.
'This extends availability of renewable electricity and reduces dependency on fossil-fuel-based backup power,' said the organisation.
Energy Storage Ireland currently estimates that there are 5.2 GW of operational wind and solar that could incorporate Battery Energy Storage Systems (BESS) and extend the availability of renewable electricity.
While other sources of renewable energy including onshore and offshore wind continue to decarbonise electricity supply in Ireland, it has become a laborious process to get these major projects off the ground. Wind energy developers have been severely impacted by chronic planning shortages and 'not-in-my-backyard' or NIMBY rejections.
However, solar continues to attract customers, likely driven by factors such as cost and easier installation.
Solar power has become the 'engine of the global energy transition,' according to a major report by not-for-profit think tank Ember.
Clean power surpassed 40% of global electricity generation last year as renewables, solar in particular, witnessed record growth, the report found.
The report showed solar generation has maintained its high growth rate, doubling in the last three years, and adding more electricity than any other source over that period while demand continued to soar.
Surging demand for electricity was fuelled by the Tech industry, especially in areas such as artificial intelligence, data centres, electric vehicles and heat pumps. This consumption outpaced the generation of clean electricity last year.
The report also found that the main reason why electricity demand growth was elevated in 2024 compared to 2023 was an increase in air conditioning use during heatwaves, as climate change continues to create unmanageable weather.
'Hotter weather drove the fossil generation increase in 2024, but we're very unlikely to see a similar jump in 2025,' said Phil MacDonald, Ember managing director.
'The world is watching how technologies like AI and EVs will drive electricity demand. It's clear that booming solar and wind are comfortably set to deliver, and those expecting fossil fuel generation to keep rising will be disappointed,' he said.
Global solar power capacity reached 1 TW in 2022 after decades of growth, but reached 2 TW only two years later, in 2024.