Otis Singleton
The electricity sector in Ireland has come a long way since the first public electric street lamp was installed in Dublin in 1880. The island of Ireland has never had a nuclear power plant, and its electricity is generated from a variety of sources, including gas, coal, peat, oil, wind, hydropower, and biomass. The Single Electricity Market, established in 2007, combines the markets in the Republic of Ireland and Northern Ireland, serving about two million homes. Ireland's electricity sector is constantly evolving, with a focus on improving efficiency, reducing emissions, and increasing the share of renewable energy sources.
| Characteristics | Values |
|---|---|
| Regulating body | Northern Ireland Authority for Utility Regulation |
| Regulating body type | Independent public body |
| Markets | Two: Northern Ireland and the Republic of Ireland |
| Single Electricity Market customers | 2.5 million |
| Republic of Ireland customers | 1.8 million |
| Northern Ireland customers | 0.7 million |
| Energy sources | Gas, coal, peat, oil, wind, hydropower, biomass |
| Gas share of energy source | 46% to 48.5% |
| Coal share of energy source | 7% to 14% |
| Wind share of energy source | 18% to 28.1% |
| Peat share of energy source | 6.8% to 8.8% |
| Hydropower share of energy source | 2.5% |
| Oil share of energy source | N/A |
| Electricity interconnection level | 9% |
| Electricity generators in the Republic of Ireland | ESB, SSE, Synergen, Edenderry Power, Endesa-Ireland, Huntstown |
| Transmission system operator | EirGrid |
| Year electricity introduced in Ireland | 1880 |
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What You'll Learn
History of electricity in Ireland
The history of electricity in Ireland is a long and fascinating one. In the 1880s, Dublin saw the installation of the country's first public electric lighting. During this decade, there was a proposal to make the lower Shannon area the industrial hub of Ireland, and the river had long been the focus of various plans to bring electricity to the country.
In 1904, Dublin Corporation constructed a coal-fired power station at the Pigeon House in Ringsend. However, early iterations of the project to bring electricity to Ireland were deemed unfeasible and were delayed by political unrest and the outbreak of World War I.
In 1923, Thomas McLaughlin, a young engineer from Drogheda, returned to Ireland after working abroad with Siemens in Berlin and studying hydroelectric schemes across Europe. He proposed damming the River Shannon and building an electric power station at Ardnacrusha in County Clare to bring power to towns and cities across Ireland. During his time in Germany, McLaughlin had concluded that peat and coal were not viable long-term solutions to Ireland's energy needs, and he believed that hydro-electric power was a more realistic option for the fledgling Irish Free State.
In 1925, McLaughlin, in collaboration with Siemens and Patrick McGilligan, the minister for Industry and Commerce, succeeded in getting a 'White Paper' on the scheme accepted by the Irish government. A budget of £5.1 million (20% of Ireland's national revenue at the time) was allocated to the project, and the Shannon Water and Electricity Power Act was passed in the same year. The Shannon hydroelectric station was completed in 1929 and provided 80% of the country's total energy demands.
The Electricity (Supply) Act of 1927 established the Electricity Supply Board (ESB) to manage Ireland's electricity supply. At the time, more than 300 different suppliers were involved in generating and supplying electricity in different parts of the country. The ESB's first long phase of electrification, from 1946 to 1965, brought electricity to rural areas, connecting over one million Irish homes and businesses to the ESB network by 1978. This Rural Electrification Scheme was described as "the Quiet Revolution" due to the major socio-economic change it brought about.
In the 1950s and 1960s, the ESB installed more than 400 MW of generating capacity based on the use of turf at its Lough Ree and Shannonbridge plants. Peat development had a significant impact on rural development, particularly in the Midlands area of Ireland.
In the 1970s, Ireland's industrialisation led to a greater demand for energy, which was met by the construction of the country's two largest power stations: Poolbeg in 1971 and Moneypoint in 1979. Moneypoint, located in County Clare, remains Ireland's only coal-burning plant.
In recent years, Electric Ireland (the new name for ESB Customer Supply) has continued to develop and refurbish the country's electricity infrastructure. In 2010, the company announced a partnership with GT Energy to create Ireland's first geothermal electricity project and acquired a wind farm project in South Wales. Electric Ireland has also sponsored various programmes and initiatives, including Darkness Into Light and The GAA Minor Championships.
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Electricity generation sources
Ireland employs a variety of energy sources for electricity production, including natural gas, coal, peat, oil, and renewables such as wind, hydropower, and biomass. Natural gas currently makes up almost half of the country's electricity generation, with renewable sources like wind power also playing a significant role. The use of renewable energy sources has been increasing, with the share of renewable electricity in total final consumption growing from 3.1% in 2005 to 8.6% in 2014, and 13.5% in 2020. In 2020, wind power alone generated 36.3% of Ireland's electrical demand, one of the highest wind power proportions in the world.
The electricity sector in Ireland previously operated as two separate markets: Northern Ireland was part of the UK market, while the Republic of Ireland had its own separate market. However, in 2007, the two markets established the Single Electricity Market for the island of Ireland, creating a gross mandatory pool market for all electricity generated or imported into the country. This market currently serves approximately 2.5 million customers, with 1.8 million in the Republic and 0.7 million in Northern Ireland. The Single Electricity Market is regulated by the Northern Ireland Authority for Utility Regulation, an independent public body that oversees and regulates the electricity, gas, water, and sewerage industries in Northern Ireland.
Ireland's electricity sector is integrated with that of Northern Ireland, and the country has interconnections with the British network through the Moyle Interconnector and the East-West Interconnector. While Ireland has never had a nuclear power plant, its increasing interconnection with the UK grid means that it is now partly powered by overseas nuclear fission stations. Ireland is also connected to the adjacent UK National Grid at an electricity interconnection level of 9%, below the recommended level of 10%.
The diversity of Ireland's fuel mix ensures that the country is not overly dependent on any one source. The country has backup sources and reserves of coal, gas, and oil in case of shortages. Ireland also has a growing installed capacity of renewable energy sources, such as wind, solar, and hydropower, which help to reduce the country's carbon emissions. In 2014, the use of renewables in electricity generation reduced CO2 emissions by 2.6 Mt, and the carbon intensity of electricity has been decreasing over time.
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Energy efficiency
The overall efficiency of electricity supply is determined by the average efficiency of electricity generation from non-combustible renewable sources, such as wind, hydro, and solar, and combustible sources, such as gas, coal, and biomass. The efficiency of electricity supply increases as the share of non-combustible renewable sources increases, and as more efficient fuels and technologies are employed in thermal generation plants. In 2020, the CO2 intensity of electricity generation fell to a historic low, due to a reduction in coal use and an increase in generation from zero-carbon renewable sources.
In recent years, there has been a push towards Combined Heat and Power (CHP) systems, which use heat energy to generate both heat and electricity from a single combustion process. CHP plants are more efficient than conventional power stations and heat-only boilers, and they are also physically closer to the users of their generated heat and electricity, such as hotels or factories.
The SEAI offers grants to accelerate the adoption of electric vehicles and home EV chargers, with home charging being a low-cost, environmentally friendly way to power a vehicle. Home insulation is also an important but often overlooked way to improve energy efficiency. Heat pumps, which use renewable energy, have become a popular choice for Irish homeowners, and the SEAI offers grants to encourage their installation.
Ireland has a diverse fuel mix for its electricity production, including gas, coal, peat, oil, and renewables. Gas currently makes up almost half of electricity generation, and the Corrib gas field is expected to provide 50-60% of Ireland's annual needs for the next few years. However, it is predicted to be depleted by 2025, and there have been no new gas discoveries. The diversity of energy sources reduces Ireland's dependence on any one source and insulates the country from supply disruptions.
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CO2 emissions
Ireland's electricity is generated from a variety of energy sources, including natural gas, coal, peat, oil, wind, and biomass. In 2018, natural gas produced 51.8% of the country's electricity, while wind turbines generated 28.1%, coal 7%, and peat 6.8%. The country has never relied on nuclear power, and legislation now explicitly forbids its introduction.
The CO2 intensity of electricity generation in Ireland fell to a historic low in 2020 due to a reduction in coal use and an increase in zero-carbon renewable sources. However, it increased slightly in 2021 due to a rise in emissions from coal and oil. Overall, the efficiency of Ireland's electricity supply has improved over the years due to the introduction of higher-efficiency natural gas plants, the closure of older peat-fired stations, and a greater share of direct generation from renewable sources.
Transport is the largest source of energy-related CO2 emissions in Ireland, accounting for 34% of emissions in 2023. The country's emissions are heavily influenced by its fuel mix, with natural gas making up almost half of its electricity generation. Ireland imports all of its oil, with the majority coming from the United Kingdom, Norway, and North and Central African sources. The Corrib gas field is expected to provide up to 50-60% of the country's annual needs for the next few years, but it is projected to be depleted by 2025.
To reduce CO2 emissions, Ireland has focused on increasing the share of renewable sources in its energy mix. In 2017, Ireland had the third-highest share of wind in electricity generation among IEA member countries. Additionally, the country has improved its energy security by increasing domestic gas production and reducing the share of oil in its energy supply. Ireland's households emit more CO2 than its industry sector, which is unusual compared to other countries, due to the country's limited heavy industry and higher use of carbon-intensive fuels in homes.
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Electricity market and pricing
The market in Ireland where electricity generators and suppliers buy and sell electricity is called the Single Electricity Market (SEM). It is a regulated market with auctions held every hour of every day. The highest price achieved in each of the hourly auctions becomes the final clearing price, which is the same price paid by all suppliers purchasing energy and received by power stations.
Wholesale electricity prices are the rates electricity suppliers pay to power stations and generators, and these directly impact the rates paid by businesses and consumers for electricity. Wholesale prices can fluctuate due to demand, weather, and natural gas prices. Natural gas currently meets approximately 50-60% of Ireland's total electricity needs, although the proportion of renewable wind generation is increasing year on year. The wholesale price is not the price paid by consumers, who cannot purchase electricity at the wholesale price. Suppliers must add regulatory charges of approximately 12 cents per kWh to maintain and operate the electricity grid.
The average annual electricity bill in Ireland varies depending on the source, with estimates ranging from €1,404.55 to €1,752. As of April 2025, the average price of electricity in Ireland per unit is 34.38c per kWh, with Community Power offering the cheapest unit rate per kWh at 28.80c including VAT. The cheapest electricity supplier in Ireland as of April 2025 is Bord Gais Energy, whose standard 24-hour rate deal costs an estimated €1,257.40 per year.
Due to recent increases in energy prices, the Irish government introduced measures to alleviate the burden on final consumers. Domestic electricity customers have received bill credits of €1,250 in instalments from April 2022 to March 2024, with two further credits of €125 announced for November 2024 and January 2025. The Temporary Business Energy Support Scheme (TBESS) was also introduced in the second half of 2022 to support businesses with increases in their electricity or natural gas costs.
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Frequently asked questions
The main sources of electricity in Ireland are gas, coal, peat, oil, and renewables such as wind, hydropower, and biomass. In 2018, natural gas produced 51.8% of Ireland's electricity demand, while wind turbines generated 28.1%, coal 7%, and peat 6.8%.
The electricity sectors in the Republic of Ireland and Northern Ireland are integrated, forming a single electricity market (SEM) that serves about two million homes. The market is regulated by different authorities in each region: the Northern Ireland Authority for Utility Regulation in Northern Ireland, and the Electricity Supply Board (ESB) in the Republic of Ireland.
While international prices of oil and gas do impact the retail price of electricity in Ireland, they are not the only factor. Government taxes, distribution charges, and the cost of refining also play a significant role in determining the final price.
