With demand for electricity expected to double by 2030, renewable sources will be key to decarbonising Ireland’s energy sector, writes Laragh Musselwhite.
The decarbonisation of our electricity system has been one of Ireland's great success stories. Emissions from electricity generation in Ireland fell by 51.4 percent from 2001 to 2020.
This sizeable drop reflects improvements in the energy efficiency of modern gas-fired power plants as well as the increased share of renewables in the electricity system here.
The government has set ambitious targets for the ongoing roll-out of renewable energy generating capacity, including five gigawatts of offshore wind by 2030.
Given that demand for electricity is expected to rise by anywhere from 19 to 50 percent over the next decade, meeting these targets will not be without challenge.
Electricity in the Climate Action Plan
The Climate Action Plan identifies the energy and electricity sector as a key enabler to Ireland meeting our Net Zero goal by 2050. The plan sets out an overall target of reducing carbon dioxide equivalent (CO2eq) emissions in the sector to between two to four mega tonnes of CO2eq by 2030.
Our most significant challenge is, however, the rapidly rising demand for electricity across Ireland. In a high-demand scenario, our electricity needs are expected to as much as double by 2030. At the same time, our electricity emissions need to be reduced by 60–80 percent.
Renewable energy
Renewable energy will be key to decarbonising the sector.
In 2020, electricity generated from renewable sources accounted for 42.1 percent of all electricity generated in Ireland — up from 33.3 percent in 2018.
Ireland has significant renewable energy resources, with wind energy accounting for 36 percent of the country's electricity in 2020.
We currently have an installed wind capacity of 4.2 megawatts, and the Climate Action Plan commits to increasing this to 13 gigawatts of combined onshore and offshore wind by 2030.
The generation opportunity
Alongside large-scale renewables, microgeneration and small-scale generation have an important role to play in empowering and driving engagement and participation.
Both create opportunities for domestic, community, farming, and small commercial customers to take the first steps towards investment in renewable technologies, potentially helping to shape electricity demand and decarbonise homes and businesses.
The Climate Action Plan also provides for a Microgeneration Support Scheme (MSS) aimed at supporting the deployment of an anticipated 260megawatts of new micro renewable generation by 2030.
A separate small-scale generation scheme will also come into effect to support the deployment of rooftop and ground-mounted solar photovoltaic (PV) modules in cohorts not suited to other support measures.
What does this mean for businesses?
While the large-scale deployment of renewables will facilitate the decarbonisation of the national energy system, a growing number of individuals are also seeking to decarbonise their own operations.
Options here include: investment in energy-efficiency; corporate power purchase agreements for renewable energy; and small-scale renewable asset deployment.
As a first step, businesses are advised to calculate, monitor, and report on their Scope 2 emissions. These are the indirect emissions associated with the purchase of electricity, steam, heat, and cooling.
By doing this, businesses can help to identify opportunities for reducing these emissions—and it’s worth noting that improving the energy efficiency of both property portfolios and business operations is crucial here.
Potential measures for reducing Scope 2 emissions include securing direct renewable energy contracts, upgrading electric systems (e.g. lighting), generating renewable energy on-site, and optimising manufacturing and production facilities.
Given the ongoing volatility in energy prices, the business case for reducing these emissions has never been stronger – and, by making considered choices, businesses can also expect to save on operational costs.
The decarbonisation of Ireland's electricity system, therefore, presents a potential opportunity for businesses.
In addition to the potential cost savings, other benefits could include reduced exposure to energy price volatility, stakeholder alignment, regulatory compliance and improved brand perception.
Laragh Musselwhite is an Analyst at KPMG Sustainable Futures.
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