Irish businesses willing to pay more for renewables amid fears for energy future
Almost seven in 10 (68%) Irish businesses are worried about securing enough energy to meet their future needs, new research reveals, with 96% of Irish companies saying they would pay more for quicker access to renewable sources.
Already, data centres consume 10% of Ireland's energy, while the attacks on Iran's oil infrastructure shows the volatility of the fossil fuel market. With significant energy demand expected to increase, business leaders in Ireland and abroad are concerned about securing sufficient reliable energy to meet their future needs, according to the EY Ireland research.
Almost seven in ten (68%) Irish businesses are worried about securing enough energy to meet future needs, while more than six in 10 (62%) say that rising and unstable energy costs are already impacting profitability and competitiveness. The findings are part of the latest EY Navigating the Energy Transition report, which surveyed over 2,400 decision-makers across eight countries, including 125 respondents in Ireland.
In Ireland, over 85% of businesses surveyed expect their electricity consumption to increase in the very near term, with most sectors indicating a rise of more than 10% in the next three years. This demand is expected to be driven by a range of factors, including new equipment (42%), electric vehicles (41%), technology and data centres (40%) and increased use of artificial intelligence (40%).
'A secure, stable and sufficient energy supply is no longer just a commodity for businesses, increasingly it's a competitive asset that can enable or inhibit growth and operations, particularly during periods of global energy price and supply uncertainty such as at present," said Sean Casey, EY Ireland energy sector leader.
An overwhelming 96% of all businesses surveyed said that they are willing to pay more for quicker access to renewables, for example via corporate power purchase agreements, while the installation of on-premise renewable generation and storage is an increasing focus for business leaders.
"Businesses are increasingly looking at on-site generation and self-sufficiency, whether via solar panels, battery storage, or the use of smart technology to optimise energy use. From a sustainability perspective, this is very welcome, however businesses say they want both green energy and energy growth, not one or the other," said Mr Casey.
'A secure, stable and sufficient energy supply is no longer just a commodity for businesses, increasingly it's a competitive asset that can enable or inhibit growth and operations, particularly during periods of global energy price and supply uncertainty such as at present," said Sean Casey, EY Ireland energy sector leader.
More than 69% of businesses are planning to increase their focus on electrification, emissions reduction and energy cost management in the next three years. Sustainability remains a key strategic priority, but not at the expense of growth.
'There is clear opportunity for energy providers to reshape themselves and redefine the business energy experience to meet customers' higher expectations and greater needs," said EY Ireland customer transformation leader Richard Hepworth.
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