With many of Ireland's policy priorities converging around secure supplies of electricity, the robust development of the country's power system will be central to achieving its energy and economic ambitions, according to a report published today by the International Energy Agency.
Ireland's electricity demand is projected to grow strongly over the next decade, and the new IEA report - Powering Ireland's Energy Future: Approaches for a secure, renewables-led electricity system to 2035 - explores how the country can build on recent progress to advance electrification while addressing emerging electricity security risks to safeguard system stability and affordability.
Ireland has emerged as a global frontrunner in the integration of renewable energy sources such as wind and solar power. Wind power supplied around a third of Ireland's electricity in 2024, four times the global average and second only to Denmark among countries with gigawatt-scale power systems. The new IEA report assesses ways in which Ireland can ensure its electricity sector can evolve to meet rising demand and the country's long-term energy and climate objectives, while managing new challenges associated with more variable power supply.
The report is being launched today on the occasion of a meeting between Ireland's Minister for Climate, Energy and the Environment Darragh O'Brien and IEA Executive Director Fatih Birol at the IEA headquarters in Paris to discuss Ireland's power system outlook and future priorities.
"Ireland has shown that an island-based power system can successfully integrate very high shares of variable electricity generation while maintaining a focus on energy security," said IEA Executive Director Fatih Birol. "As electricity demand grows strongly in the coming decade, this report highlights how coordinated planning, timely investment and continued innovation in power grids can help Ireland make progress on its electrification ambitions, as well as on its energy security, affordability and emissions reduction goals."
"Ireland is delighted to have partnered with the IEA for the publication of this important and timely report, which contains key policy recommendations not just for Ireland, but for all countries who are accelerating the green energy transition. Energy security is a global challenge which requires global cooperation and dialogue," said Minister for Climate, Energy and the Environment Darragh O'Brien. "I look forward to discussing the report's findings in more detail with our international partners, as we face the shared challenge of building more secure, sustainable and affordable energy systems for future generations. Ireland is proud to continue to support the IEA's critical work, and I would like to thank the IEA for leading the analysis, especially all of those who contributed to its development."
To support decision makers, the report explores how Ireland's electricity supply could expand to meet rising demand driven by the electrification of heat and transport, as well as growth in housing and digital infrastructure such as data centres. It illustrates the multifaceted challenge of meeting rising electricity demand while reducing emissions and maintaining secure and reliable power supply.
According to the report, the electrification of heating and transport could significantly reduce Ireland's annual fuel import bill by almost 3 billion euros. Achieving these benefits will depend on addressing upfront costs and ensuring that pricing, tariffs and system design support efficient electrification while aligning new demand with renewable generation. An ongoing focus on electricity security will also be crucial.
The report also underscores the growing importance of grid infrastructure and system operations, noting that achieving Ireland's goals will require timely grid investment and increased flexibility. At the same time, it highlights how Ireland's experience offers valuable insights for countries worldwide seeking to balance strong demand growth with increasing shares of variable renewable electricity.
