Ibec, the group representing Irish businesses, has published a new energy paper highlighting the impact of high electricity costs on Irish businesses. The report warns that failing to address these costs could threaten business viability, future investment, and decarbonisation efforts.
Ibec believes that with the right investments and initiatives, Ireland could transform its energy system into a long-term competitive advantage. However, in the short to medium term, electricity prices will remain a barrier to economic growth unless steps are taken to tackle the underlying cost drivers. Potential measures identified in the paper include a national subsidy to support renewable energy and network investments, which would provide meaningful cost relief to consumers.
The report also identifies challenges in achieving secure, affordable, and sustainable energy, partly due to the absence of a cohesive national energy and industrial strategy.
Conor Minogue, Senior Executive and author of the paper at Ibec, commented:
“Ireland has some of the highest electricity costs in the developed world. In the long-term these costs can be reduced by accelerate the roll-out of low-cost renewable generation and storage technologies, investing in the national grid and supporting electrification of homes and businesses. But in the short-term a significant annual subvention of €600 million annually will be needed to offset system charges and the PSO levy, reduce costs and bring Ireland into line with European norms.”
” Over the last ten years, Irish electricity prices have been among the highest in Europe and there is no sign this will change any time soon. This a major concern given that Europe itself is highly uncompetitive, with electricity prices 2-3 times higher than in the United States and China. The next government must address this electricity competitiveness gap as a strategic priority.”
Reducing electricity costs in Ireland- November 2024PDF | 536.7 KB
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