IEA Report Warns Ireland’s Long-Term Climate, Energy And Economic Goals Depend On A Strong, Secure Electricity System As Power Demand Surges Through 2035

Ireland’s ability to meet its long-term energy, climate, and economic goals will depend heavily on the strength and reliability of its electricity system, according to a new report released by the International Energy Agency (IEA). As several national policy priorities increasingly focus on secure electricity supply, the report emphasizes that continued development of Ireland’s power system will be essential in the years ahead.

Electricity demand in Ireland is expected to rise sharply over the next decade. This growth will be driven by the electrification of heating and transport, increased housing development, and the rapid expansion of digital infrastructure, including data centres. The IEA’s report, *Powering Ireland’s Energy Future: Approaches for a secure, renewables-led electricity system to 2035*, examines how Ireland can build on its recent progress in clean energy while managing new risks related to electricity security, system stability, and affordability.

Ireland has already established itself as a global leader in renewable energy integration, particularly in wind and solar power. In 2024, wind energy accounted for around one-third of the country’s total electricity generation. This level is four times higher than the global average and places Ireland second only to Denmark among countries with large-scale power systems. The report explores how Ireland’s electricity sector can continue to evolve to meet rising demand while supporting long-term climate targets and addressing the challenges associated with a more variable power supply.

The report is being launched at the IEA headquarters in Paris during a meeting between Ireland’s Minister for Climate, Energy and the Environment, Darragh O’Brien, and IEA Executive Director Fatih Birol. The discussions focus on Ireland’s future electricity needs, system resilience, and strategic priorities as demand continues to grow.

According to the IEA, Ireland has demonstrated that an island-based electricity system can successfully integrate high levels of variable renewable generation while maintaining a strong focus on energy security. As electricity use increases in the coming years, the report stresses the importance of coordinated planning, timely investment, and continued innovation in electricity grids. These measures will be critical to supporting electrification, keeping energy affordable, strengthening supply security, and reducing emissions.

Minister Darragh O’Brien welcomed the collaboration with the IEA, describing the report as both timely and important. He noted that its policy recommendations are relevant not only for Ireland but also for other countries accelerating their transition to clean energy. He emphasized that energy security is a global challenge that requires international cooperation and ongoing dialogue, and expressed Ireland’s continued support for the IEA’s work and analysis.

To support policymakers, the report outlines different scenarios for expanding Ireland’s electricity supply to meet growing demand while lowering emissions. It highlights the complexity of balancing rising electricity use with the need for a secure, reliable, and resilient power system. The report also points out that increased electrification of heating and transport could significantly reduce Ireland’s reliance on imported fuels, cutting the country’s annual fuel import bill by nearly €3 billion.

However, achieving these benefits will require addressing upfront investment costs and ensuring that electricity pricing, tariffs, and system design encourage efficient electrification. Aligning new electricity demand with renewable energy generation will be essential, alongside maintaining a strong and continuous focus on electricity security.

The report also underscores the growing importance of electricity grid infrastructure and system operations. Timely investment in grids and greater system flexibility will be necessary for Ireland to achieve its energy and climate goals. At the same time, the IEA notes that Ireland’s experience offers valuable lessons for other countries seeking to manage rapid electricity demand growth while increasing their reliance on renewable energy sources.