Economy

At a time of intense focus on energy prices, a new review paper from the Economic and Social Research Institute Ireland (ESRI) has found that while interventions such as energy credits have alleviated much of the burden for Irish consumers, Irish electricity prices have been among the most expensive in Europe during the 2018–2024 period of analysis. The review, which charts electricity price trends in Ireland and Europe, also finds that Ireland’s exposure to international gas prices helped push residential electricity prices to the highest in Europe in 2024, before taxes, levies and energy credits are taken into account. Commenting on the research, Dr Niall Farrell, Associate Research Professor at the ESRI, said: “Irish electricity prices tend to track trends in natural gas prices. While many countries have reduced their reliance on gas-fired generation in recent years, Ireland has been less able to diversify away from gas-fired generation. Renewables provide an important hedge against fuel price volatility.” According to provisional data from Eirgrid, nearly half of Ireland’s electricity came from renewable sources during March. A growth of rooftop solar saw a reduction in need for traditional generators at times and wind energy made up a significant proportion of renewable energy, contributing 40 percent of the overall fuel mix in March. The increase in wind energy generation limited the increase of wholesale electricity prices in Ireland, according to research from Wind Energy Ireland, which states that “Rising gas prices drove the average wholesale price of electricity in Ireland last month up 19 percent compared to February but a strong performance by Irish wind farms kept prices lower than in March 2025.” Separately, the Government announced a package of measures on fuel costs to support the transport, farming and fisheries sectors. These measures include reducing by a further 10 cents the excise on diesel and on petrol (VAT inclusive), reducing the excise on marked gas oil (green diesel) by a further 2.4 cent (VAT inclusive), and deferring the planned increase in carbon tax, scheduled for 1 May, until the Budget. These measures are in addition to the previously allocated €250 million in targeted supports to assist those experiencing real and immediate financial pressure. The Government is also establishing a new Road Transporters Support Scheme (RTSS) providing direct payments to the haulage and coach operators, and has announced a €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers. 

Chartered Accountants Ireland has reacted to today’s publication of the Critical Infrastructure Bill which aims to fast-track the approval processes for critical infrastructure projects in Ireland. Commenting on the Bill, Cróna Clohisey, Director of Members and Advocacy at Chartered Accountants Ireland said “As a professional body representing 40,000 businesspeople across the economy, we see this Bill as a significant step in the Government’s approach to addressing Ireland’s infrastructure challenges. “Engagement with our members has demonstrated that infrastructure deficits need to be addressed as a matter of urgency if Ireland is to achieve its growth ambitions, meet its energy, transport and water requirements, and its sustainability goals. It is encouraging, therefore, to see the Bill’s focus on coordination and collaboration between public bodies to facilitate the rapid approval of projects and programmes.” Grant Sweetnam, Head of Public Policy at Chartered Accountants Ireland, said: “For a small, open economy like Ireland, infrastructure is key to competitiveness. It is vital for maintaining the standard of living for our citizens, for attracting foreign direct investment, for supporting our SMEs and for ensuring Ireland remains one of the best locations to do business.” “Our infrastructure continues to be one of our most critical competitiveness deficits. It is essential that barriers are removed to facilitate investment in our infrastructure to safeguard Ireland’s social and economic interests.  We look forward to engaging constructively with Government and stakeholders on this issue.”

The Climate Change Advisory Council’s latest report: Annual Review 2026 - Our Changing Climate in 2025, finds that climate change is having measurable impacts in Ireland, with growing risks for communities, infrastructure, essential services and the economy. The economic damage from the five named storms that affected Ireland in 2025 amounted to almost €360 million, following estimated losses of €4.1 billion from flood and windstorm events in Ireland in 2024. The storm also exposed vulnerabilities in critical infrastructure and essential services, including energy, water and telecommunications. The Council identifies gaps in how the economic, social and environmental consequences of extreme weather events are monitored and notes that robust data and evidence are essential to inform effective policy, planning and investment; it also calls for coordinated Government action, including investment in climate monitoring and infrastructure systems, strengthened policy and legislative frameworks, and a systemic approach to improving national resilience.