Renewable energy sources reduced energy costs on the island of Ireland by more than €1.5 billion in 2025, according to a report released Tuesday.
The savings, primarily driven by wind and solar power, offset expenses related to gas and carbon emissions, the report stated. Wind energy accounted for approximately €1.4 billion of the total cost reduction. The findings underscore a growing trend of renewable energy mitigating the impact of volatile fossil fuel prices.
Ireland’s energy supply remains heavily reliant on imported fossil fuels, with 82.6% originating from these sources in 2023, according to data from the Sustainable Energy Authority of Ireland (SEAI). Despite this dependence, renewable energy use reached a record high of 23.38 terawatt-hours (TWh) across electricity, transport and heat sectors in 2023.
In 2023, approximately 40.7% of Ireland’s electricity supply came from renewable sources, an increase from 38.6% in the previous year. Wind energy constituted 33.7% of the electricity supply, while solar-PV generation accounted for 1.9%, equivalent to meeting the country’s total electricity needs for a full week. Biofuel blends in road diesel and petrol also increased, reaching 8.4% and 4.2% respectively.
The increased use of renewables helped avoid 7.4 million tonnes of carbon dioxide emissions in 2023. However, the Irish economy continues to face challenges related to high energy costs, largely due to its reliance on imported energy. A recent analysis by The Irish Times highlighted Ireland’s position as having the third-highest energy prices in the European Union, nearly 30% above the EU average.
The phasing out of coal-fired power generation, with the closure of Moneypoint in June 2025, has led to a greater reliance on gas for electricity generation, which increased by nine percentage points to 45% in August 2025. Gas, largely imported, remains a significant contributor to energy costs.
SEAI’s latest report also provides provisional estimates for Ireland’s 2023 renewable energy share (RES) results for electricity, transport, and heat, as set out under the EU’s Renewable Energy Directive, Ireland’s Climate Action Plan, and the National Energy and Climate Plan.
