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Ambitious climate targets, policy innovation, and infrastructure upgrades are set to transform Ireland’s energy sector in 2025. Eoin Cassidy, Energy Sector Lead Partner, shares his insights on the opportunities and challenges ahead for businesses and investors navigating this dynamic landscape.


What You need to know

  • Energy demand management will be a focal point, with new policies for large energy users expected in early 2025
  • Ireland is advancing its transition to net-zero gas, including the adoption of EU standards for hydrogen and biomethane integration into the national grid
  • The renewable electricity sector is on track for further expansion, with significant targets for wind and solar capacity by 2030
  • Offshore renewable energy development remains a priority, supported by new government initiatives and auction schemes
  • Critical grid upgrades and planning reforms will drive onshore renewable project growth

2025 is poised to be a transformative year for Ireland's energy sector, driven by ambitious climate targets and a renewed governmental focus on policy, innovation and infrastructure. The recently published Draft Programme for Government reaffirms Ireland’s commitment to a 51% reduction in emissions by 2030 and net-zero emissions by 2050. These goals set the stage for significant developments across the sector.

Energy demand management

Energy demand management will take centre stage in 2025. The Draft Programme for Government emphasises the importance of digital infrastructure in Ireland’s economic growth, particularly in the context of AI and data centres. A new policy for large energy users, informed by a recent consultation process, is anticipated in early 2025.

In addition, the Climate Action Plan 2024 calls for a demand-side strategy to be implemented this year, featuring targeted measures to manage energy demand across all sectors of the economy. These developments will be closely monitored by businesses and investors in the energy sector.

Net-zero gas transition

Momentum is growing in Ireland’s transition to zero-emission gas. The government will adopt EU standards for renewable and low-carbon hydrogen, accompanied by a national certification scheme to ensure clarity on the sustainability and origin of hydrogen for end users.

Gas Networks Ireland is also advancing its efforts to decarbonise the gas network by enabling the commercial-scale injection of biomethane. This step is crucial for achieving Ireland’s long-term energy strategy.

Renewable energy generation

Ireland’s renewable electricity sector continues to thrive. The Draft Programme for Government sets ambitious targets of 9GW of onshore wind, 8GW of solar, and at least 5GW of offshore wind capacity by 2030.

Key milestones include the opening of applications for the first small-scale Renewable Electricity Support Scheme (RESS) on January 27 and the conclusion of consultations for RESS 5 in February. The offshore sector is also advancing, with ORESS Tonn Nua auction phases scheduled for Q1 and Q2 of 2025.

Offshore wind development

Stakeholders are awaiting the new government’s stance on the Future Framework measures introduced by the previous administration. These measures are critical to achieving Ireland’s ambitious offshore wind targets and ensuring alignment with broader economic goals.

Onshore renewable development and grid upgrades

Recent court rulings overturning planning refusals for onshore wind projects have injected optimism into the sector. A substantial pipeline of onshore projects is currently progressing through the planning system.

The government has also committed to significant infrastructure spending, including grid upgrades to accommodate new renewable projects. Progress on hybrid connections and private wire solutions, referenced in the Draft Programme for Government, will play a pivotal role in modernising Ireland’s grid policies and boosting its attractiveness for energy investment.

Compensation for renewable re-dispatch

A resolution to the longstanding uncertainty surrounding compensation for renewable generation re-dispatch is expected in 2025, with clarity anticipated from the European Court of Justice. This decision will be pivotal for developers and investors navigating the sector.

Comment

2025 promises to be a pivotal year for Ireland’s energy sector, marked by significant policy advancements, infrastructure developments, and renewable energy initiatives. From energy demand management to net-zero gas and renewable generation, the opportunities and challenges ahead will require careful navigation.

Our Construction, Infrastructure & Utilities team is ready to assist you in achieving your energy sector goals. Contact us to explore how we can support your projects in the year ahead.

The content of this article is provided for information purposes only and does not constitute legal or other advice.



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