The supply of secure, affordable and sustainable energy is central to all economic development in Ireland and across the EU.
Now, Europe and Ireland are at an energy crossroads. The war in Ukraine and resulting energy crisis exposed our overdependence on imported fossil energy and high vulnerability to international gas prices. While the EU policy response to this crisis has been successful in securing energy supplies, many businesses across Europe were unable to remain viable and competitive in the face of sustained energy price inflation.
While energy prices have lowered from the exceptional levels seen in 2021 and 2022, European businesses continue to face some of highest energy costs globally. A 2024 BusinessEurope energy study, supported by Ibec and developed with economic consultancy Compass Lexecon, foresees a continued deterioration in European competitiveness in the coming decades with energy costs in Europe projected to be at least 50% higher than in the US, China and India by 2050. This energy competitiveness gap could be felt even more acutely in Ireland given our high dependence on natural gas, the slow pace of renewable electricity delivery and low levels of interconnection.
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