Ireland’s Energy Transition Plan Costs $20 Billion Per year

Energy transition of Ireland, which has pledged to achieve net zero emissions not later than 2050, will result in capital expenditure of more than $20 billion for new business per year by 2030, a new report from the Sustainable Energy Authority of Ireland (SEAI) said.

Of this, the Irish based companies have the potential to capture up to 42% of that amount, the SEAI report entitled “Ireland’s Sustainable Energy Technologies: Supply Chain Opportunities” said. The report was released on the inaugural day of the two-day “SEAI Energy Show” at Royal Dublin Society in Dublin on Wednesday.

The report examined in detail how well Irish enterprises are positioned to capture new business opportunities arising from the ongoing transition to sustainable energy systems in Ireland and beyond.

It found that the main opportunities for Irish companies will be in construction, engineering, and financial services, as well as service and equipment delivery by local enterprises. Apart from the power sector, Ireland’s main focus is the decarbonisation of transport, buildings, and industry.

This is being driven by measures such as electric vehicle incentives, building energy efficiency upgrades, and support for industrial fuel switching, the report said.

Underpinning these efforts is a key focus on enhancing Ireland’s energy security by reducing reliance on imported fossil fuels.

The report said that the total capital expenditure by 2030 associated with this transition could amount to between $18.26 billion to $20.41 billion per year in Ireland alone. The majority of the investment is anticipated to be in low carbon transport, energy in buildings and renewable electricity generation.

The report said that the Irish companies have the potential to capture $2.69 billion of new business in efficient construction, almost $1.83 billion in electric vehicle business, and a similar amount of new business in the provision of sustainable biomass heating for buildings.

It also highlighted big opportunities for Irish companies in the provision of smart grids, solar panels, smart buildings and homes, and biomass anaerobic digestion.

Opportunity for Local Industry

Although Ireland is unlikely to manufacture the key components of the technologies highlighted in the report, the SEAI said local enterprises could still capture a share of the market by providing some services and equipment.

However, for that to happen the report said it is essential to direct sufficient funding towards enhancing and expanding local manufacturing facilities and service businesses.

Looking beyond Ireland, the report also points to new business potential in the EU-27 and the UK markets, which it estimates could grow to more than $1.61 trillion per year. This growing international market offers an export opportunity for Irish suppliers of sustainable energy products and services.

However, it noted that Irish companies currently have limited capabilities to effectively engage with those EU and global markets.

Nevertheless, the report found that Ireland has a wealth of wind and ocean energy potential and that building a strong local market can help create a springboard for Irish companies to start exporting to wider markets by showcasing Irish products and services and enabling companies to establish revenue streams.

Ireland’s Minister for Climate, Environment and Energy Darragh O’Brien said that the report said that this energy transition will deliver for both our planet, and Irish economy, creating significant opportunities for Irish businesses in the supply chain where Ireland is well positioned to capitalise.

“I look forward to collaborating with my colleagues across government, and industry partners to deliver on this opportunity, and continue to position Ireland as a leader in the energy transition,” he added.