Ireland’s energy transition is at a critical juncture. A newly published report, entitled A Colossal Missed Opportunity, from the Irish Fiscal Advisory Council and the Climate Change Advisory Council has laid bare the financial risks facing the country if we fail to meet our climate commitments.
Among the stark warnings, one message is clear: our failure to reinforce our energy grid is a major bottleneck to progress. Without urgent investment and reform, Ireland risks not only missing its climate targets but also spending billions of your money to make up the shortfall.
The Cost of Falling Behind
Countries like Ireland, which miss their target, can make up the difference by buying credits from those of our more successful EU neighbours. But that means your money is going to pay for hospitals in Madrid, not Mullingar, and housing in Lisbon, not Limerick.
The report estimates that Ireland could be forced to pay between €8 billion and €26 billion to EU partners if we do not accelerate the development of clean power. A significant portion of this financial risk comes from our sluggish transition to renewable energy and inefficient energy infrastructure.
By 2030, Ireland is required to generate 43% of its total energy from renewable sources. However, as of 2023, we were only at 15% and we’re due to be well short of our target.. This is directly linked to an energy grid that is struggling to cope with the volumes of modern renewable energy generation.
Urgent Need for Grid Investment
The report identifies reinforcing our grid as the most important – no regrets – way to reduce our 2030 fines. It calls for investment of €7 billion in upgrading our national energy grid to facilitate the rollout of renewables and meet our climate targets. This investment is necessary to:
- Cut waste– The current grid is not equipped to handle the vast increase in wind and solar power needed to meet the targets. Grid congestion is already causing delays in connecting new renewable projects and huge volumes of clean power are wasted every year.
- Ensure energy security – Recent geopolitical events and extreme weather highlight the risks of relying on fossil fuel imports. A modernised grid would reduce our dependence on volatile global energy markets.
- Support electrification – As Ireland transitions to electric vehicles and heat pumps, the demand for clean electricity will surge. Without grid expansion, the transition could stall.
The risk of inaction
Failing to upgrade the grid would make it impossible for Ireland to meet its renewable energy obligations.
Moreover, an underdeveloped grid would mean:
- Higher energy prices for consumers due to inefficiencies in distribution;
- Missed economic opportunities in the green energy and technology sectors;
- Continued reliance on fossil fuels, further undermining our energy independence and fuelling the climate emergency.
Turning a challenge into an opportunity
Rather than treating grid investment as a burden, Ireland should see it as an opportunity to position ourselves as a leader in the clean energy revolution.
The transition to renewables, coupled with a modernised grid, could create thousands of jobs in infrastructure, engineering, and technology, reduce long-term energy costs by cutting reliance on imported fossil fuels, and attract international investment in renewable energy projects.
The report makes it clear: upgrading the grid is not just about meeting climate targets—it’s about ensuring Ireland’s economic and energy security for the future.
A path forward
The Irish Government must act now to:
- Support and accelerate EirGrid’s development plans to expand and reinforce the electricity network;
- Streamline planning and regulatory approvals for grid upgrades and renewable energy projects;
- Invest in energy storage and smart grid technology to improve efficiency and reliability;
- Ensure affordable access to the grid for all renewable energy providers.
Investing in the energy grid today means avoiding billions in penalties tomorrow. More importantly, it means securing a clean, affordable and secure energy future for Ireland.
