Wiktor Wise
Ireland's electricity is generated from a variety of sources, including natural gas, coal, wind, hydropower, and peat. The country has made significant strides in renewable energy, with wind power being one of its most prominent sources of electricity. The island of Ireland has a unique electricity market, serving both the Republic of Ireland and Northern Ireland, which has influenced the development of its energy sector. With a focus on renewable sources and a diverse fuel mix, Ireland aims to reduce its carbon emissions and increase the efficiency of its electricity supply.
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What You'll Learn
Ireland's electricity sources
Ireland employs a diverse range of energy sources to produce electricity, including natural gas, coal, peat, oil, and renewables such as wind, hydro, solar, landfill gas, biomass, and biogas. The country's electricity sectors in the Republic of Ireland and Northern Ireland are integrated, supplying approximately 2.5 million customers.
Historically, the first electricity in Ireland was generated from coal, with the installation of the first public electric street lamp in Dublin in 1880. Dublin Electric Light Company operated three coal-fired generation stations in the city by 1882. In 1927, the Electricity Supply Board (ESB) was established, leading to the development of new power facilities, including the Ardnacrusha hydro plant on the River Shannon in 1929. The Rural Electrification Scheme, initiated by ESB, successfully provided electricity to 80% of rural households by the 1960s.
In recent years, Ireland has made significant strides toward renewable energy sources. In 2020, wind power alone provided over 86% of the country's renewable electricity and generated 36.3% of its total electricity demand, placing Ireland among the top countries in wind power generation. The overall renewable energy share in 2020 was 13.5%, with renewable electricity accounting for 69% of all renewable energy used. In 2021, wind power capacity reached 5,585 MW, with 4,309 MW in the Republic of Ireland.
Natural gas is another significant contributor to Ireland's electricity generation, accounting for about 46% of the country's electricity production. However, Ireland's natural gas supply is highly dependent on imports, with the Corrib gas field expected to deplete by 2025.
Other sources, such as coal, peat, and oil, also play a role in electricity generation. Coal-fired power stations have a long history in Ireland, and the country maintains strategic reserves of petroleum products. Additionally, Ireland has set ambitious renewable energy targets, aiming for 40% of its electricity consumption to come from renewable sources.
The country's electricity industry is regulated by the Commission for Regulation of Utilities, which also oversees the natural gas market. EirGrid, owned by the Irish State, ensures the safe and efficient operation of the high-voltage electricity grid.
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The Single Electricity Market
The SEM has created a gross mandatory pool market, where all electricity generated or imported into Ireland must be sold, and from which all wholesale electricity for consumption or export must be purchased. As of 2013, the SEM served approximately 2.5 million customers, with 1.8 million in the Republic of Ireland and 0.7 million in Northern Ireland. The impact of Brexit on the SEM is yet to be determined.
The SEM is regulated by the Commission for Regulation of Utilities, which also oversees the natural gas market. The Commission's duties have been significantly expanded by legislation transposing EU directives into Irish law. Ireland had initially aimed to generate 16% of its energy from renewable sources by 2020 but has since updated its target to 32% by 2030.
The SEM has contributed to the efficiency of Ireland's electricity supply. The closure of older peat-fired stations and the introduction of higher-efficiency natural gas plants have improved the overall efficiency of electricity generation. Additionally, the direct generation of electricity from renewable sources has increased, with wind power playing a significant role.
The SEM has also influenced the pricing of electricity in Ireland. The carbon tax, for instance, does not apply to electricity because the cost of carbon emissions is already included in the pricing under the SEM.
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The regulatory bodies
The electricity industry in Ireland is regulated by the Commission for Regulation of Utilities, which also regulates the natural gas market. The functions and duties of the commission have been altered and expanded significantly by legislation transposing EU directives into Irish law. For instance, under the original 2009 Renewable Energy Directive, Ireland had set a target of producing 16% of its energy from renewable sources by 2020. This target was updated by a second directive to 32% by 2030, and 40% by 2020 according to another source.
The electricity industry in Northern Ireland 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. It is a non-ministerial government department that ensures the energy and water utility industries are regulated and developed within ministerial policies. It is governed by a board of directors and is accountable to the Northern Ireland Assembly.
On 1 November 2007, the two Transmission System Operators (System Operator Northern Ireland and EirGrid) established the Single Electricity Market for the island of Ireland. This market has created a mandatory pool into which all electricity generated or imported into Ireland must be sold, and from which all wholesale electricity for consumption or export must be purchased.
EirGrid, owned by the Irish State, ensures the safe, secure, and economic operation of the high-voltage electricity grid. It was established to assist the liberalisation of Ireland's electricity industry and the development of a competitive market.
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Renewable energy targets
Ireland has set ambitious renewable energy targets to increase the share of renewable sources in its electricity mix. The country has made significant progress in recent years, with renewable electricity generation accounting for 30.1% of gross electricity consumption in 2019, up from 8.6% in 2014.
In 2020, wind power alone provided over 86% of Ireland's renewable electricity, with wind turbines generating 36.3% of the country's total electricity demand, one of the highest proportions in the world. This represents a remarkable shift away from traditional fossil fuel sources, such as coal and peat, towards cleaner and more sustainable energy options.
To further boost the development of renewable energy, the Irish government set a target of meeting 40% of its electricity consumption through renewable sources by 2020. While this target was not quite met, the country remains committed to increasing the share of renewables. The government has updated its Renewable Energy Directive, now aiming for 32% of all energy needs to be met by renewable sources by 2030.
Ireland's diverse energy mix includes natural gas, coal, wind, hydropower, and biomass. This diversity ensures a balance between cost-effectiveness, reliability, and environmental impact. The country also has a large and growing installed wind power capacity, with over 300 wind farms, mostly onshore.
In addition to its renewable energy targets, Ireland has committed to reducing its greenhouse gas emissions. The country plans to achieve a 7% annual average reduction in these emissions between 2021 and 2030, contributing to its overall goal of reducing emissions and fostering a more sustainable energy future.
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Electricity generation history
Ireland's electricity sector has a long history, with the first public electric street lamp being installed in Dublin in 1880. The same year, the Dublin Electric Light Company was formed to provide public street lighting from coal-fired power plants. In 1927, the Electricity Supply Board (ESB) was established, leading to the development of new power facilities, including the Ardnacrusha hydro plant on the River Shannon in 1929. By 1965, 80% of rural households had access to electricity due to the Rural Electrification Scheme.
Over the years, Ireland has relied on various energy sources for electricity generation, including coal, peat, natural gas, wind, and hydropower. In 2018, natural gas accounted for 51.8% of the country's average electricity demand, while wind turbines contributed 28.1%. Coal and peat also played a role, with 7% and 6.8% respectively. However, Ireland has never had a nuclear power plant, despite brief considerations by the government in the past.
The efficiency of Ireland's electricity supply has improved over the decades due to the introduction of higher-efficiency natural gas plants, the closure of older peat-fired stations, and the increased direct generation from renewable sources. In 2020, wind power accounted for 36.3% of Ireland's electricity demand, one of the highest proportions globally. As of 2021, the country had 5,585 MW of installed wind power capacity, with a large and growing wind power sector.
The Single Electricity Market (SEM) was established in 2007 to combine the markets in Ireland and Northern Ireland, serving approximately 2.5 million customers. Ireland is a net energy importer, and the cost of energy imports can fluctuate due to changes in international oil and gas prices. The country has set targets to increase the share of renewable electricity and reduce greenhouse gas emissions, aiming for a more sustainable energy future.
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Frequently asked questions
Ireland uses a combination of energy sources to produce electricity, including natural gas, coal, peat, oil, wind, hydro, landfill gas, biomass, and biogas.
The electricity sectors in Ireland are integrated, supplying 2.5 million customers with electricity generated from various sources.
Electricity was first introduced to Ireland in 1880 with the installation of the first public electric street lamp in Dublin. The Dublin Electric Light Company was formed the same year and operated coal-fired power plants. The Electricity Supply Board (ESB) was established in 1927, leading to the development of new power facilities, including the Ardnacrusha hydro plant.
Ireland has a diverse fuel mix for electricity generation, with natural gas contributing the most, followed by coal, wind, peat, and hydropower. The country is working towards increasing renewable energy sources and reducing greenhouse gas emissions.
The Single Electricity Market (SEM) was established in 2007 to combine the markets in Ireland and Northern Ireland. The market is regulated by the Commission for Regulation of Utilities, and EirGrid operates the high-voltage electricity grid. Northern Ireland has a separate regulatory body, the Northern Ireland Authority for Utility Regulation.
