While energy transition presents challenges, acting promptly with well-planned strategies can mitigate risks and lead to a more sustainable and resilient energy future. Experts agree that delaying action, meanwhile, will cost dearly, and not just in economic terms; it will have environmental and societal implications too.
“Delays have a cascading cost. Economically, Ireland could face anywhere from €8 billion to €26 billion in EU fines for missing climate targets. But the greater loss lies in missed jobs, investment and energy security. Environmentally, delay means prolonged fossil fuel use and steeper cuts later. Socially, it increases exposure to volatile energy prices and public distrust in climate policy delivery,” says Enda Gunnell, chief executive of Pinergy.
Strategic investment is essential, and urgent, he says, and he argues that funding for grid upgrades, smart systems and storage should come from national capital expenditure, not higher consumer bills. Public support for EVs and heat pumps will also be required. Over time, a blend of public and private investment will be needed to deliver the transition fairly and efficiently.
Ireland’s ability to meet its renewable energy targets depends on urgent action in three critical areas, he adds.
READ MORE
“First, we must accelerate grid upgrades and storage deployment. A modern, flexible grid is essential to integrate rising volumes of wind and solar. According to the Pinergy Energy Transition Outlook, developed with Wood Mackenzie, 4.7GW of storage will be needed by 2030 to support variable renewables and reduce curtailment.
“Second, we need to unblock renewable energy delivery, especially offshore wind. Planning delays, supply chain constraints and port infrastructure gaps are slowing momentum. We are already projected to fall 4GW short of the 5GW offshore wind target for 2030.
“Finally, we must scale up electrification of heat and transport. EVs and heat pumps are key to replacing fossil fuel use at the point of consumption, but adoption remains well behind target.”
The biggest barrier is the investment and delivery gap and without immediate action the State will miss its net-zero pathway. “Offshore wind, for example, is 80 per cent behind 2030 goals. Grid capacity and connection delays are stalling progress. Meanwhile, heat pump uptake is 461,000 units behind target, and EV adoption needs to accelerate by 54 per cent to stay on track for 2030,” Gunnell notes.
To meet renewable energy targets, the State must prioritise expanding offshore wind capacity, leveraging its expansive maritime area for energy generation, says James Delahunt, partner, corporate finance, and head of energy and natural resources with KPMG in Ireland.
“Accelerating solar power development by encouraging residential and commercial installations can substantially boost output and reduce costs to the consumer. Strengthening grid infrastructure is essential to accommodate increased renewable input and enhance reliability. Regulatory support and investment incentives are crucial to propel advancements in technology and innovation.
“Public-private partnerships can foster the necessary investment, while community engagement ensures widespread adoption and success. Finally, while electrification will be the primary means of decarbonising the energy system, the need for liquid and gaseous fuels will persist in some sectors; we need to leverage our natural resources to ensure we have access to supplies of sustainable fuels.”
Delahunt acknowledges that the State faces several barriers in reaching its renewable energy goals, including regulatory delays that hinder project approvals and development. Grid capacity limitations also pose challenges in integrating new renewable sources efficiently and can inhibit corporates from switching their energy demand from fossil fuels to renewable electricity. Financial constraints can limit investment in necessary infrastructure and technology innovations.
“A lack of national or local political leadership can create the environment for opposition to large-scale projects, like wind farms, sometimes impeding progress. Additionally, skills shortages in the renewable sector can affect the pace of delivery. Addressing these obstacles requires strategic planning, stakeholder engagement and robust government support and incentives.
Conversely, KPMG’s Powering Tomorrow 2025 research reveals considerable and steady support for renewable energy projects with more than three-quarters (77 per cent) of adults supporting renewable energy projects near their homes. Most Irish adults (78 per cent) support offshore wind energy projects and nearly three-quarters (72 per cent) endorse onshore wind and solar energy initiatives.
Funding the less competitive infrastructure elements of the energy transition requires a mix of public and private investments, Delahunt notes. Government initiatives, such as grants and tax incentives, can support infrastructure development and innovation in renewable technologies while the EU offers funding mechanisms, providing additional resources for sustainable projects. Green financing through bonds and sustainable investment funds are methods to access private capital meanwhile.
Peter O’Brien, co-founder of Ventry Technologies, notes that climate change is already shaping how we live, work and travel, while at the same time energy demand is going up, factors that underpin the need for energy transition strategies to be deployed sooner rather than later.
O’Brien says there is a common idea that tackling the energy transition means building everything from scratch, whether that’s new vehicles, new systems or large infrastructure projects, and this thinking needs to be challenged.
“In reality, some of the quickest wins come from working with what we already have. Retrofitting older, less efficient systems is a practical way to reduce energy use right now. It is cost-effective, non-disruptive and the impact is immediate.”
“Offsetting alone will not get us there,” he adds. “We have to reduce what we use. The climate is changing. Our energy needs are growing. And the most sustainable step we can take is to use less energy in the first place, wherever and whenever we can.”
