Demand for gas fell by 7% in 2023 as wind energy continued to rise

Gas accounted for 47% of electricity generation during 2023 compared to the 39% from wind energy. Picture Denis Minihane.

Overall demand for gas decreased by 7% during 2023, with significant drops seen in the retail sector and in homes, as electricity generated from wind energy continued to rise, Gas Networks Ireland has said.

Throughout the entire year, 47% of all electricity produced was generated from gas, down from 48% in 2022 while wind’s overall contribution to the grid increased from 34% to 39%. 

Coal generated 4% of electricity in 2023.

Gas was the largest source of electricity in Ireland during the first 10 months of the year, with June seeing the highest reliance on gas during 2023, providing 58% of electricity during the month.

Both wind and gas made an equal contribution of 41% in November with wind energy being a key source in December providing 53% of all electricity in the State.

Brian Mullins, acting director of strategy at Gas Networks Ireland, said the gas network “continued to play a central role in meeting the country's energy needs” particularly during periods of “low or absent wind”.

A mild start to the year led to a decrease in gas demand in January, down 8% month-on-month, and February, down 11%. 

An usually wet and dull March led demand to increase by 14% compared to February.

As the summer months saw calm weather, gas was used more to make up the difference in power generation due to lack of wind power.

A couple of storms during December meant there was plenty of wind energy generated.

Gas demand dropped across numerous sectors during 2023. 

Demand in the retail sector dropped 18%, while demands from hotels and education facilities decreased by 12%.

Residential demand dropped 12% year-on-year.

One area where gas usage increased was in the demand for compressed natural gas (CNG) for the transport sector. 

CNG in this year increased by 20% compared to 2022.

Mr Mullins said the increasing demand for CNG in transport is a “positive trend” as vehicles using this fuel contribute approximately “a fifth of the sector's carbon emissions”.

However, these vehicles at the moment represent just 3% of vehicles on the road.

“While electricity is a proven alternative fuel for cars, electric solutions are not an option for use in heavy goods vehicles, however CNG and its renewable equivalent, BioCNG, can substantially reduce emissions in the HGV sector,” Mr Mullins said.