Powering transport and heating with electricity instead of fossil fuel could save the Republic €2.8 billion a year, experts say.
The International Energy Agency (IEA), which advises governments and industry around the world, says wind supplied one third of electricity in the State last year, making the Republic, making it a global front-runner in renewable power.
Electrifying heating and transport would lessen Irish reliance on imported fossil fuels, which provide 80 per cent of energy here, according to an agency report on the Republic published on Thursday.
“Replacing oil- and gas-based boilers and vehicles with electric alternatives could cut direct fossil fuel imports by 38 per cent and lower annual import bills by €2.8 billion,” the agency calculates.
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But it cautions that high electricity prices and upfront costs, along with bottlenecks on the national grid are barriers to this.
Government climate action plans aim to have renewables generate 80 per cent of the electricity used here by 2030.
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According to the IEA, wind and solar could generate 88 per cent of electricity by 2035, backed by interconnectors, through which the Republic imports electricity, and energy storage.
Gas-fired generators would act as a security back up, the agency predicts. This would continue to leave the Republic exposed to volatility in supplies of the fuel and its price.
The agency predicts that peak electricity demand here could hit 10,000 mega watts (MW) by 2035, from around 6,000MW now.
To meet this, its report says the Republic would need to have power plants capable of generating 16,000MW, compared with 7,500MW now.
Along with more power plants, the Republic will need to expand the national grid, managed by State company, EirGrid.
Government has earmarked a record €10 billion to €14 billion for the grid over that period, the IEA acknowledges.
“But long lead times and permitting challenges remain key barriers,” it adds.
The agency says that spending should include strengthening the grid in rural Ireland, large parts of which suffered long electricity blackouts following Storm Éowyn in January.
Fatih Birol, IEA executive director, noted that the Republic has shown it can successfully integrate variable electricity – generated from wind and solar power – while focusing on energy security.
The agency’s report, Building a Secure Energy System for Ireland, highlights how planning, investment and continued innovation in the national grid can aid the State in electrifying heat and transport, he noted.
The Climate Action Plan wants to replace fossil fuels with electricity, generated mostly from renewables, to cut greenhouse gas emissions.
Darragh O’Brien, Minister for Climate, Energy and the Environment, said the report would be a starting point for a Government consultations next year on the energy industry’s role in security, competitiveness and sustainability in the 2030s.
