Fossil fuels continued to account for the majority of Ireland’s primary energy supply in 2024, making up 81.4% of the total, according to new figures from the 74th Statistical Review of World Energy. The analysis, compiled by the Energy Institute in partnership with KPMG and Kearney, shows Ireland ranked eighth globally for wind and solar penetration as a share of total electricity generation, but renewable growth is struggling to keep pace with rising demand.
The report highlighted several milestones for the year. Emissions from energy industries fell by 8.9%, the third consecutive annual decline, aided by the closure of Ireland’s last coal-fired power plant and higher electricity imports from Great Britain. Transport emissions dipped 1.2%, the first drop since 2020, despite a growing vehicle fleet, thanks to increased use of biofuels and electric vehicles.
However, the analysis underscored that fossil fuels remain deeply embedded in Ireland’s energy system. Natural gas alone fuelled 42% of electricity generation in 2024. While coal and peat usage declined, overall fossil fuel reliance still edged up by 0.7% from 2023. Residential emissions, meanwhile, rose by nearly 5% due to higher consumption of non-renewables.
James Delahunt, Head of Energy & Natural Resources at KPMG in Ireland, said the country has the “capability and resources” to build on its progress but warned that “growing strategic risks” demand urgent action to scale renewables and boost system flexibility to phase out fossil fuels.
Rising Costs and Infrastructure Pressures
The review points to serious challenges ahead. Electricity prices in Ireland surged last year, with non-household rates now the highest in the EU and household costs 30% above the EU average, second only to Germany. Businesses have flagged these steep prices as a threat to investment and the country’s decarbonisation plans.
Security of supply remains a pressing concern. The Temporary Emergency Generation Programme, aimed at addressing power shortfalls, has seen costs soar from €400 million to an expected €1.3 billion. A proposed floating LNG terminal could add another €900 million to infrastructure spending.
Grid capacity is also under strain, driven by the rapid expansion of data centres and increased electrification in heating and transport. The €200 billion National Development Plan includes major grid upgrades to support both economic growth and renewable integration, but delivery remains a challenge.
Renewables Growth Lagging Behind Demand
Electricity demand rose by 4.1% in 2024, while the share of renewable generation slipped slightly from 40.7% to 39.6%. Imports provided 14% of electricity supply, and delays to the €1 billion Celtic Interconnector mean additional capacity will not be available until at least spring 2028.
Solar power saw the fastest growth, with output up 71% year-on-year and meeting 3% of total demand. Despite these gains, the Sustainable Energy Authority of Ireland warns that current measures are insufficient to meet carbon budgets and the target of 80% renewable electricity by 2030.
