The Economic Impact of Wind and Solar Farms in Ireland

Introduction

Ireland's commitment to renewable energy has yielded significant economic and environmental benefits. A comprehensive report by international energy consultants Baringa, commissioned by Wind Energy Ireland, reveals that since 2000, wind and solar farms have saved Irish electricity consumers approximately €840 million.

This achievement highlights the importance of continued investment in renewable infrastructure. Despite the €6 billion spent on network costs and government subsidies, the return on investment has been overwhelmingly positive. The report underscores how renewables have shielded consumers from the volatility of fossil fuel prices, particularly in the last four years, when homegrown renewables have saved the average Irish electricity customer €320 per person on their bills.

But this is only the beginning. If Ireland reaches its target of 80% renewable electricity by 2030, the country could unlock an additional €640 million in annual savings, ensuring further economic and environmental stability.

Financial Benefits of Renewable Energy

One of the key advantages of renewable energy lies in its cost-effectiveness. The substantial savings enjoyed by Irish consumers are primarily due to the low operational costs of wind and solar power. Unlike fossil fuel-based power generation, renewables require no fuel, meaning they can displace more expensive gas and coal-fired generators in the electricity market. This in turn drives down wholesale electricity prices, resulting in lower energy costs for households and businesses.

Additionally, Ireland's reliance on imported fossil fuels exposes consumers to price fluctuations in global markets. In recent years, geopolitical tensions and supply chain disruptions have led to unpredictable spikes in energy prices. By expanding Ireland’s wind and solar capacity, the country can reduce its dependence on imports and stabilise electricity costs in the long run.

Environmental Impact

Beyond the financial savings, the transition to renewable energy has delivered substantial environmental benefits. Since 2000, Ireland’s adoption of wind and solar power has:

• Prevented the burning of €7.4 billion worth of fossil fuels: reducing reliance on volatile global markets and strengthening national energy security.
• Avoided over 47 million tonnes of carbon dioxide emissions: which is equivalent to removing nearly 10 million cars from the road for an entire year.

The urgency of climate action has never been greater. Ireland has legally committed to achieving net-zero emissions by 2050, in line with EU climate goals and the Paris Agreement. Expanding renewable energy generation is one of the most effective ways to cut carbon emissions and move towards a sustainable, low-carbon future.

Ireland’s Renewable Energy Progress and Future Targets

Ireland’s transition to renewable energy has been nothing short of remarkable. Over the past two decades, the country has embraced wind and solar power, shifting away from expensive, polluting fossil fuels. This commitment to clean energy is now paying off, both in terms of lower electricity costs and a healthier environment. 

By 2024, Ireland had surpassed 5,000 MW of installed onshore wind capacity, a major milestone in the country’s renewable energy journey. To put this into perspective, that’s enough to power over 3.5 million homes annually. Wind energy alone contributed nearly 35% of Ireland’s electricity generation in 2023, a clear indication of how renewables are reshaping our energy landscape.

But while progress has been significant, the journey is far from over. The Irish government has set an ambitious target: 80% of our electricity must come from renewable sources by 2030. This is an ambitious yet achievable goal—one that, if realised, will transform Ireland’s energy system and deliver widespread benefits for consumers, businesses, and the environment.

Achieving this target will mean:

• Lower electricity costs: Households and businesses could save an estimated €640 million per year, as reliance on expensive imported fuels continues to decline.
• Stronger energy security:  With more homegrown wind and solar power, Ireland will be less dependent on imported gas and oil, shielding consumers from global energy price shocks.
• A significant reduction in emissions:  A cleaner electricity system means a substantial cut in Ireland’s carbon footprint, helping the country meet its climate commitments and combat global warming.
• Economic growth and job creation: The renewable energy sector is already a major employer, and expansion will create even more jobs in engineering, construction, grid management, and maintenance—boosting both rural and urban economies.

With the right investments and policies in place, Ireland can become a global leader in renewable energy. The next six years are crucial in ensuring that our energy future is cleaner, more affordable, and more secure for generations to come.

What Needs to Happen Next?

The Chief Executive of Wind Energy Ireland has emphasised the need for further wind and solar developments to ensure a clean, reliable, and domestic energy supply. However, there are several key challenges that must be addressed:

• Planning and Grid Connection Delays: The approval process for renewable energy projects must be streamlined to accelerate development.
• Investment in Storage Solutions: Technologies such as battery storage and pumped hydro will be essential in balancing supply and demand, ensuring electricity availability even when wind speeds are low or sunlight is insufficient.
• Public and Private Sector Collaboration: Government policies, private investment, and community engagement will play a crucial role in achieving Ireland’s clean energy targets.

Conclusion

Ireland’s shift to renewable energy has already saved consumers money, reduced carbon emissions, and strengthened energy security. By cutting reliance on fossil fuels, the country is not only lowering electricity costs but also protecting itself from global energy price shocks.

But there’s more to do. Reaching the 80% renewable electricity target by 2030 means tackling planning delays, upgrading grid infrastructure, and investing in storage solutions. Collaboration between government, industry, and communities will be key to making this happen.

The next six years are critical. With the right focus and investment, Ireland can secure a cleaner, more affordable energy future—one that benefits both people and the planet.

*By Anne Hayden MSc., Founder, The Informed Farmer Consultancy.