According to a recent American Chamber FDI Insights survey, the security of Ireland’s energy grid is an important factor in maintaining US investment in Ireland. Electricity grid connection issues are already placing constraints on the development of datacentres while the system needs massive investment if it is to be able to meet the government target of carrying a minimum of 80 per cent renewable energy by 2030.
Meanwhile, the planning system is delaying vital infrastructure projects like the North-South Interconnector and our natural gas supplies are vulnerable to any damage, accidental or otherwise, to the two interconnectors with Scotland.
Do these shortcomings and vulnerabilities represent a barrier to new US FDI into Ireland? If so, what measures can be put in place in the short term to address them?
Ireland’s grid is at a critical juncture, says Rhonda Doyle, country president, Schneider Electric Ireland.
“As electricity usage surges across sectors, from electrified vehicles to growing household needs, our electricity system must evolve to support the transition to renewables whilst meeting demand,” she says.
“Data centres play a critical role in this landscape. They are not just economic engines but also digital enablers, supporting everything from cloud-based healthcare to financial services and national innovation. However, the ability to connect new data centres to the grid is becoming an increasing challenge due to outdated infrastructure.”
At the same time, Doyle adds, this challenge is driving innovation in data centre efficiencies. We’re seeing the emergence of a new energy paradigm, where organisations, including data centres, are becoming ‘prosumers’: generating, storing, managing, and even supplying energy back to the grid. This decentralised approach opens up new opportunities for flexibility and resilience.
Yes, the grid needs urgent investment and strategic upgrades. But equally, we must recognise the innovation already under way, and data centres are playing a critical role in a more sustainable, decentralised and intelligent energy future, she notes.
The Republic has set ambitious targets, such as 80 per cent of electricity coming from renewable sources by 2030 and net-zero emissions by 2050, says Rodney Doyle, managing director, energy transition, KPMG in Ireland.
“These plans require an expansion and upgrade of Ireland’s energy infrastructure,” he says.
Ensuring Ireland reaches its net zero energy targets requires building large-scale energy infrastructure, he continues, adding: “Our research reveals considerable and steady support for renewable energy projects with over three-quarters (77 per cent) of adults supporting renewable energy projects near their homes, a slight increase from 76 per cent in 2023.
“While the support for disruptive energy infrastructure projects is encouraging, one of the most important elements in powering Ireland’s energy transition will be our ability to bring citizens on the journey with us.”
Ireland’s gas supplies are currently well managed, but not without vulnerabilities, says Schneider Electric’s Rhonda Doyle.
“While renewables must continue to be a focus, gas is still an important component of our energy mix during periods when solar and wind output are low,” she says. “We rely heavily on imports via interconnectors from elsewhere, and while these pipelines have historically been reliable, geopolitical uncertainty and infrastructure risks mean we must plan proactively for potential disruption.”
That’s why energy security and sustainability must go hand in hand, she adds: “Diversifying supply routes, accelerating the transition to renewables and adopting energy storage technologies are all part of a solution which builds resilience into the energy system.”
Ultimately, the goal is not just to protect Ireland from supply shocks but to build an energy system that is smarter, cleaner and more secure in the face of future challenges.
To secure Ireland’s energy future, KPMG’s Rodney Doyle says we need a compelling vision of what this will mean to people regarding their homes, communities and job prospects.
“It’s essential our citizens understand that putting the right infrastructure in place is what guarantees our future,” he says.
US companies continue to see Ireland as a highly attractive destination, the Republic being the only native English-speaking European Union member state, with a skilled talent pool, EU market access and a strong innovation ecosystem, says Rhonda Doyle.
“Energy resilience is increasingly part of the due diligence process for international investors, particularly in sectors like technology, advanced manufacturing, and life sciences, where reliability and sustainability of supply are critical to operations,” she says.
“The fastest and most effective way to increase this resilience is by expanding demand-side flexibility and incentivising businesses and consumers to adopt prosumer technologies – helping both the grid and large energy users manage peak demand more effectively.”
Ireland’s energy transition is well under way, and while there are hurdles to overcome, there is also a clear roadmap in place, she says.
“Ongoing collaboration between government, regulators and industry will be key to ensuring that energy policy and infrastructure continue to support sustainable growth and remain aligned with the expectations of global investors.”
