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Irish Times
a day ago
- Business
- Irish Times
Grid investment key to cutting fossil-fuel use
Proposed spending on the State's electricity grid will be key to cutting our dependence on fossil fuel, says an expert. Oil and gas accounted for 81.4 per cent of total Irish energy consumption last year, an increase of 0.7 per cent on 2023, according to a report published by the Energy Institute, a global body. Planned investment by national grid company EirGrid and ESB Networks would boost the use of electricity and renewables, aiding the Republic in cutting fossil fuel consumption, said James Delahunt, head of energy and natural resources (Ireland) at KPMG, following its publication. [ How Ireland went from first to last in the race to develop offshore wind energy Opens in new window ] The Commission for the Regulation of Utilities (CRU), which oversees the energy sector, recently proposed approving total spending of €14.1 billion up to 2030 by EirGid and ESB Networks, and could allow scope for up to €19 billion depending on the progress each company makes with their plans. The proposal is going through consultation. READ MORE Mr Delahunt, whose firm collaborated with the Energy Institute on the report, said it was likely that both companies would get approval for the spending. EirGrid is responsible for the national grid, which transports electricity from power plants, while ESB Networks manages the lines that bring electricity to individual customers' homes and businesses. Their proposed investment is likely to add up to €16 a year to household electricity bills, according to the CRU, which is why the regulator must approve their plans. 'I don't think the Department of Finance have any respect for the tourism industry' Listen | 41:44 Renewables generate about 40 per cent of electricity used in the Republic annually, mostly wind and solar, with natural gas producing the same amount. Imports account for most of the balance. However, road transport, manufacturing and heating still rely heavily on oil and gas for energy, according to Mr Delahunt. Government climate plans aim to cut some of this dependence by electrifying transport and heat. It is also bidding to increase the use of biofuel for heating. From next year, suppliers of fossil fuels for heating will be obliged to include some renewables in their product offerings. According to the Government, that will start at 1.5 per cent of the energy they supply from next year, rising to 3 per cent the following year. Those targets could increase after a review of the scheme in 2028. Mr Delahunt said the Renewable Heat Obligation , as the scheme will be known, was a welcome step in the right direction. The report by the London-headquartered Energy Institute, an international body of professionals working in the industry, confirmed that the Republic ranked eight out of the top 10 countries in the world for renewable electricity use. According to the Sustainable Energy Authority of Ireland , total greenhouse gas emissions last year fell 2 per cent to 53.75 million tonnes.
RTÉ News
4 days ago
- Business
- RTÉ News
Fossil fuels continue to dominate Ireland's energy mix
Fossil fuels were Ireland's primary energy source last year, accounting for 81% of primary energy supply, according to an analysis of global energy data by KPMG. Ireland now ranks 8th globally for wind and solar penetration as a share of total electricity generation however, though the growth in electricity demand outpaces the development of renewables. The analysis found, despite notable advancements, Ireland still faces significant hurdles in securing a sustainable energy future. The Energy Institute, in collaboration with Kearney and KPMG, released the 74th edition of the Statistical Review of World Energy, offering a look at global energy data for 2024. The review paints a compelling picture of Ireland's progress, which saw a remarkable decrease in emissions against a backdrop of robust energy demand, driven by the closure of the country's last coal-fired power station and strategic renewable energy policies. Emissions in the energy industries reduced by 8.9% in 2024, the third consecutive year a decrease was observed, partially due to an increase in electricity imports from Great Britain. Transport emissions marginally decreased by 1.2% despite a 4.1% increase in the national fleet. This is the first decrease in transport emissions since 2020 and a result of increased adoption of biofuels and electricity. In contrast, residential emissions increased by 4.9% in 2024 with consumption of all non-renewables excluding peat increasing. However, fossil fuels remained as Ireland's primary energy source in 2024, accounting for 81.4% of primary energy supply. This corresponded to an increase of 0.7% from 2023, despite drops in coal and peat. Ireland remains heavily dependent on natural gas which fuelled 42% of electricity generation in 2024. "The statistical review shows that Ireland has the capability and resources to build on the successes delivered in 2024," said James Delahunt, Head of Energy & Natural Resources, KPMG in Ireland. "However, growing strategic risks underscore the need to prioritise policies and initiatives that will efficiently and cost-effectively deliver renewables and system flexibility to phase fossil fuels out of the economy." Challenges ahead Despite the gains, Ireland grapples with critical challenges, including security of supply concerns, rising electricity prices, and difficulties delivering major infrastructure projects. The Temporary Emergency Generation Programme, intended to address supply concerns, has seen its budget balloon from €400 million to an anticipated €1.3 billion. Additionally, a planned Floating Regasification Storage Unit to facilitate LNG imports is estimated to cost an additional €900m. Electricity prices surged in 2024, positioning Ireland as having the highest non-household electricity costs in the EU, with household rates 30% above the EU average, second only to Germany. These steep prices have been flagged by businesses as a significant threat to investment and business viability, posing risks to Ireland's ambitious decarbonisation goals. In addition, Ireland's infrastructure also faces major obstacles, with grid capacity struggling to keep pace with rapid demand increases driven by data centre expansion and increased electrification in heating and transport. However, the €200 billion National Development Plan aims to address these challenges through major grid infrastructure upgrades to support both economic growth and renewables integration in tandem. Electricity demand growth outpaces renewables development Domestic electricity demand rose by 4.1% in 2024, while the share of renewable generation decreased marginally from 40.7% in 2023 to 39.6% in 2024. Electricity imports via interconnectors were the third largest source of supply, contributing 14% of the mix. The €1bn Celtic Interconnector project, now delayed to spring 2028, will provide crucial electricity import capacity to meet our rapidly expanding electricity demand. 2024 saw a 71% increase in solar power production, outpacing the growth of all other renewable technologies and serving 3% of electricity demand. Ireland now ranks eight globally for wind and solar penetration as a share of total electricity generation, with Denmark leading the way. While substantial progress has been achieved, Ireland faces significant challenges to delivering the goal of 80% renewable electricity by 2030, with the SEAI warning that current efforts fall short of carbon budgets and EU targets.
