Anna Conlan
Head of Ireland Electrified
Ireland can cut energy costs, reduce fossil fuel imports and strengthen energy security by accelerating affordable electrification.
Ireland spends an estimated €1 million every hour on imported fossil fuels. Electrifying our energy system offers an opportunity to build a more efficient and competitive economy while cutting emissions, reducing exposure to volatile international energy markets and making greater use of renewable electricity produced here in Ireland.
The cost of electricity relative to fossil fuels remains a significant barrier
The benefits are particularly clear in heating and transport, where heat pumps and electric vehicles are far more energy-efficient than fossil-fuel alternatives. Yet, these sectors account for more than 80% of Ireland’s final energy demand and are still heavily dependent on imported oil and gas.
The challenge is not just encouraging households and businesses to electrify; it is making the switch affordable and financially attractive while strengthening Ireland’s energy independence.
Closing the spark gap
The cost of electricity relative to fossil fuels remains a significant barrier. Even if a heat pump is three times more efficient than a gas boiler, consumers will struggle to make the switch if electricity costs three times as much per unit.
This is the ‘spark gap’ — the ratio between electricity and fossil-fuel prices. SEAI figures indicate that a unit of electricity in Ireland costs around 2.84 times the equivalent unit of gas. The EU’s Electrification Action Plan aims to bring this ratio below 2.5 for households and 2.0 for industry by 2030.
Accelerating electrification
Ireland needs practical measures to close this gap and accelerate the transition. For example, the Government could look at a suite of measures to reduce VAT on electricity and change how electricity network charges work so households and businesses can save money by using electricity at times when demand is lower. People should also be rewarded for using technologies such as heat pumps, batteries and EVs, helping to make the switch to clean energy more affordable.
Ireland has made significant progress in renewable electricity. The next step is making clean energy affordable for households and businesses, delivering lower costs, greater energy security and a more competitive economy.
Ireland Electrified will launch a new paper with further recommendations at its Annual Conference in Dublin on 10 September, bringing industry and policymakers together to discuss a cleaner, more secure and affordable energy future. For more information and registration, visit irelandelectrified.ie
