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 energyOpens 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’
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.
