Ireland's ever-growing demand for energy putting strain on electricity system, EirGrid says

The electricity industry will need to identify new ways to meet growing demand for energy, EirGrid says. Picture: Denis Minihane

Ireland needs more energy to meet the ever-growing demand from homes and businesses over the next three years, with “unique challenges” being posed to the system in Dublin, EirGrid has said.

The State-owned operator of the electricity grid said there would be a gap between the future electricity demand and what is being generated in the coming years, while assessments have revealed some capacity generation could be economically “unviable due to insufficient revenues”.

“As society consumes electricity in different ways, and as we transition to a renewable-led transmission system, the electricity industry will need to identify new ways to meet growing demand for energy,” EirGrid’s head of power system insights Marc Senouci said.

"As the landscape of demand and generation supply changes, and as electricity demand increases, Government policy will help guide the transition, but a coordinated effort to manage both the volume and type of new capacity will be needed."

The details are included in its annual All-Island Resource Adequacy Assessment, looking at the balance between electricity demand and supply in Ireland over 10 years.

The gap between demand and supply is measured using the “reliability standard”, which it defines as the number of hours per year electricity production is not expected to meet demand.

While it does not say for sure that electricity consumers will be without supply during these times, it is an indicator of whether an electricity system needs additional capacity to be able to operate securely.

Ireland’s reliability standard is three hours, and EirGid’s assessments show we are outside of this standard in 2026, 2027 and 2028.

Additional capacity will therefore be needed, it said, pointing to the Commission for Regulation of Utilities' security of supply measures.

“While these measures improve the adequacy position, the measures are temporary in nature and are therefore not included in the central analysis, as otherwise it would not send a clear signal to the industry and policy makers that additional capacity is needed,” it said.

“It remains crucial that the capacity market delivers new capacity in a timely fashion, and the type and volume of capacity needed to underpin the energy transition.” 

Mr Senouci added EirGrid was continuing to connect significant volumes of offshore and onshore wind, solar and conventional generation to the grid, which is receiving significant investment from the Government.