Clogged grid, not investor appetite, limits renewables
Ireland’s renewable-energy transition has reached a critical ‘delivery gap’ where planning delays and grid limitations – not a lack of investment or ambition – are now the primary obstacles to meeting national targets.
That is the central finding of the Investors in Energy: Ireland report, launched by Addleshaw Goddard at Dublin’s Westbury Hotel (6 February).
The report suggests that, while Ireland has successfully attracted global capital, the physical and regulatory systems required to deploy that capital are struggling to keep pace.
Solar success
The report highlights the acceleration of the Irish solar sector as a blueprint for what is possible.
In under four years, Ireland has scaled from virtually zero solar capacity to in excess of 2GW, with policy support through the Renewable Electricity Support Scheme (RESS) and sustained investor appetite.
The report warns that replicating this success in other sectors, particularly offshore wind, faces significant headwinds.
Due to protracted planning challenges and the complexity of marine leasing, the first phase of offshore wind projects is now only expected to deliver power post-2030.
Speaking to over 100 senior industry representatives and decision-makers, Gavin Blake (partner and head of energy and infrastructure at Addleshaw Goddard Ireland), noted that the narrative of the Irish energy market had shifted.
"Ireland’s opportunity is shaped not by demand or capital, but by how effectively delivery is coordinated across the system," Blake said.
“Grid capacity, planning complexity, and infrastructure sequencing are now the critical factors determining how quickly projects can be built and brought online. The next phase is about making that growth dependable."
Rising demand
The report argues that the power system’s capacity to absorb new generation is being tested by rapidly rising electricity demand.
This is driving a surge in interest for ‘behind-the-meter’ generation and private wire connections, as large energy users seek to bypass grid constraints to secure their own supply.
A keynote speech from Minister of State Timmy Dooley acknowledged that regulatory systems must evolve to match the "supportive policy and investment environment" already in place.
The minister highlighted two pivotal pieces of legislation currently being progressed by the Government.
The Critical Infrastructure Bill is designed to streamline the approval process for projects deemed essential to national interest.
The Emergency Powers Bill provides the State with the tools to accelerate growth and protect energy security in a volatile geopolitical climate.
Despite the warnings regarding the grid, the report identifies a "broad and investable pipeline" beyond traditional wind and solar.
Capital is increasingly flowing into battery storage, grid stability services, and biomethane.
The report calls for radical co-ordination between the Government, regulators, and private industry.
Aligning infrastructure investment with actual demand growth, rather than forcing projects against rigid system limits, will be the only way to maintain investor confidence and ensure Ireland’s energy security, it states.