Ireland is falling short of meeting government set sectoral emissions targets and carbon budgets, a task made more difficult as costs continue to rise. This reality is that there is a critical need for an immediate investment in decarbonisation. Failing to act early and decisively not only exacerbates economic and environmental challenges but also jeopardises our ability to meet international climate commitments. This is the conclusion of a recent report by Davy analysis that emphasises that the time to act is now.
According to the Davy Investing in Tomorrow: Shaping a Net-Zero Future report, the projected cost of achieving Ireland’s 2030 decarbonisation goals could exceed €43 billion. This investment is made up of:
- €29 billion is to be invested in the power generation sector
- €5 billion by Eirgrid on the offshore grid & the Celtic connector
- €8 billion by ESBN on land network connection
- €1 billion by Greenlink/MaresConnect on interconnection
- An average of over €6 billion/year over the next 7 years.
Other reports that document the costs of transition include:
- The Climate Action Plan has identified a sector investment of €35 billion by 2030.
- Eirgrid’s Shaping Our Electricity Future Roadmap, indicates an investment of €40-50 billion by 2030 in the power generation sector.
- EAI’s own report from 2022 “Our Zero Emission Future” suggested that cost of hitting the previous 2030 goal of 70% renewable energy was €32 billion.
With The Ten-Year Network Development Plan, by ENSTOE study, showing that Ireland is projected to be in the bottom 5 of EU countries for solar and onshore wind in 2040, there is no doubt that heavy investment is needed in the upcoming years and that a no regrets expenditure to electrify and decarbonise Ireland’s energy sector is required. Food for thought as we await CRU’s next price review consultation.
