COMMISSION STAFF WORKING DOCUMENT Country Factsheet Ireland Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Ireland, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 228 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet Ireland Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  State of the Energy Union  {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 217 à 227} {SWD(2015) 229 à 243}  
 
 
Towards an Energy Union  
           Ireland 

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

Between  2005  and  2012,  the  Irish  energy  sector’s  share  in  GDP  has  converged  towards  the  EU 
average.  During  the  same  period,  the  share  in  total  employment  has  fallen  to  well  under  the  EU 
average, pointing to some restructuring in the Irish energy sector. 

Source: EUROSTAT – National Accounts 

According to EurObserv'ER, in 2013, the share 
of  direct  and 
indirect  renewable  energy 
related  employment  in  total  employment  of 
the  economy  in  Ireland  was  at  about  0.25%, 
below the EU average of 0.53%. 

Source:  European  Commission,  based  on  EurObserv'ER  and 
EUROSTAT 

TRADE BALANCE OF ENERGY PRODUCTS 

Over the period under consideration the Irish energy trade deficit has stayed rather close to the one 
for the EU as a whole. In fact, this deficit is rather persistent as it occurred both in the context of a 
sizeable  current  account  deficit  (in  2006)  and  of  a  sizeable  current  account  surplus  (in  2013)  in 

0.00.40.81.21.62.02.420052012IEEU27Value added of energy sector% of grossvalue added (total economy)0.00.10.20.30.40.50.60.720052012IEEU27Employment in energy sector% of total employment 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Ireland 

Ireland1. It reflects Ireland's dependency on imported energy products. 

Source: EUROSTAT 
Note: Current account balance for EU28 from European Commission (AMECO) 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The energy mix of Ireland is broadly in line with the one of the EU-28, with the notable difference of a 
considerably higher share of "Petroleum and Products" and lack of nuclear. Compared to 1995, the 
share of renewable energy increased more than EU average (from 2% to 6% of gross inland energy 
consumption),  while  the  share  of  petroleum  and  products  decreased  by  2  percentage  points.  The 
main decrease concerns the use of solid fuels (9 percentage points). 

Gross inland energy consumption in 2013  

Source: DG ENER, based on EUROSTAT  

IMPORT DEPENDENCY 

Energy import dependency is very high in Ireland and increasing in particular as regards gas, although 
the  commencement  of  indigenous  gas  flow  from  the  Corrib  gas  field  later  this  year  should 
significantly reduce import dependency in the short term. Ireland currently imports nearly all its gas 
from the UK. Power generation relies heavily on gas imports from the UK and both interconnectors 

1   Due to data availability, the 2006 current account figure is sourced from CSO, the national statistical office. 

2 

-8-6-4-20246IEEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2006 -8-6-4-20246IEEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Ireland 

experienced outages in winter 2012/132. As a peripheral country and less well connected part of the 
single market, Ireland might expect to have few suppliers owing to the existence of fewer significant 
economies of scale and high marginal cost of supplying. The country supplier concentration index is 
among  one  of  the  highest  in  the  EU.  The  energy  trade  deficit,  expressed  in  percentage  of  GDP,  is 
above EU average.   

Source: DG ENER, based on EUROSTAT  

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

Both  in  gas  and  electricity,  Ireland  is  currently  only 
connected  to  the  UK.  The  interconnection  level  for 
electricity was 9% in 2014, which is slightly below the 
2020 target of 10%. The interconnection level of the 
Single Energy Market on the island of Ireland remains 
well  below  the  EU  target,  which  is  however  not 
relevant  to  the  Member  States'  target.  With  the 
completion of PCI projects currently being looked at, 
Ireland's  interconnection  capacity  would  increase 
substantially  and  the  15%  for  2030  would  be  met, 
considering the island of Ireland as a whole. Besides 
several  reinforcements  of  the  connections  with  the 
UK,  the  PCI  list  also  includes  a  link  from  Ireland  to 
France. 

Source: DG ENER based on ENTSO-E scenario outlook and 
adequacy forecast 2014 
Note: Reference to 2030 target is based on October 
2014 European Council conclusions stating that "the 
Commission will also report regularly to the European 
Council with the objective of arriving at a 15% target by 
2030" 

2  

Top non-EU gas suppliers table is based on EUROSTAT data. The share of imports from non-EU countries is calculated 
as the ratio between volumes of imports from that specific non-EU supplier and total imports (from EU and non-EU 
countries). 

3 

Top non-EU gas suppliers in 2013 (% in total imports)IrelandEuropean Union country[%]country[%]-Russia39.0Norway29.5Algeria9.7Qatar6.790%89%100%100%87%96%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasIEEU28Import dependency 2013 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Ireland 

ELECTRICITY AND GAS MARKETS 

Market concentration index for power generation (left) and 
gas supply (right) (2013) (Herfindahl index – 10000 means 
monopoly)

The  concentration  of  power  generation  and 
gas  supply  markets 
in 
is  relatively 
Ireland, a sign of good competition.  

low 

The wholesale electricity prices are above EU 
average.  Gas  trading  takes  place  largely  in 
the highly liquid UK market – reflecting both 
the small size of the Irish market and the fact 
that almost all gas is imported from UK. 

Sources: DG ENER based on ESTAT, CEER and Platts Power Vision 

Sources:ESTAT and DG ENER Calculations 

The  switching  rates  for  electricity  and  gas 
consumers  are  well  above  the  EU  average. 
The  gas  retail  market  has  been 
fully 
deregulated  since  July  2014  when  the 
incumbent's  market  share  remained  below 
the  55%  threshold  set  by  the  Regulator  for 
retail  price  deregulation.  In  electricity  the 
incumbent's  market  shares  remain  high. 
Further  efforts  seem  required  to  improve 
competition 
sector  and 
encourage  customers  to  fully  participate. 
is  above  the  EU 
Consumer  satisfaction 
average in both electricity and gas markets3. 
Ireland is proceeding with a roll-out of smart 
metering  systems  for  both  electricity  and 
gas. 

retail 

the 

in 

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

The energy price developments over time for Ireland and that for the whole Euro area do not seem 
to differ too much, while the respective non-energy price developments seem to differ strongly in 
the severe economic downturn for Ireland, in particular the deflation in the years 2009 and 2010). 
Whereas  in  2009,  energy  price  developments  contributed  to  the  overall  deflation,  in  2010  it 
provided some counterweight to the deflationary pressures in other sectors of the Irish economy.  

Source: DG ECFIN based on Eurostat 

3  

Assessment  based  on  MPI  index  (SANCO  Report  –  Consumer  Markets  Scoreboard:  Making  markets  work  for 
consumers, 10th edition, June 2014).  

4 

-4-202420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsIreland : Price evolution & the contribution of energy prices-4-202420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEA : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Ireland 

VULNERABLE CONSUMERS 

living  conditions, 

Based on a EUROSTAT survey on income 
three  proxy 
and 
indicators  are  used  to  assess 
fuel 
poverty.  They  indicate  potential  issues 
in  particular  as  regards 
for  Ireland, 
arrears  on  utility  bills.  This  might  be 
the  overall  economic 
related 
situation 
Consumer 
satisfaction  is  above  the  EU  average  in 
both electricity and gas retail markets. 

Ireland. 

to 

in 

 Source: DG ENER, based on on EUROSTAT SILC survey 

3. Energy Efficiency and moderation of energy demand 

ENERGY EFFICIENCY TARGET 2020  
(13.9 Mtoe primary energy and 11.7 Mtoe final energy) 

Source:  DG  ENER,  based  on  EUROSTAT  and  on  national  energy  efficiency 

targets as declared by the MS under the EED 

for 

target 

current 

primary 

energy 
Ireland’s  2020 
in 
efficiency 
is  13.9  Mtoe  expressed 
if 
primary  energy  consumption.  Even 
energy 
Ireland's 
consumption (13.4 Mtoe in 2013) is close 
to its 2020 target, the margin is small and 
regarding  energy 
additional  efforts 
lower  the 
efficiency  are  needed  to 
primary energy consumption further and 
then keep it at this level afterwards when 
GDP increases again during the next  five 
year  period.  The  ability  to  implement 
additional  efforts  would  need  to  be 
considered  in  the  context  of  Ireland’s 
fiscal situation and its obligations derived 
from  the  Stability  and  Growth  Pact,  and 
also 
sector 
the 
indebtedness.   

level  of  private 

ENERGY INTENSITY 

Primary energy intensity in Ireland is below and has decreased faster than the EU average. A lower 
energy intensity reduction is recorded in the industrial sector, but it remains well below EU average. 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Ireland 

Primary energy intensity of the economy  

Final energy intensity in industry 

Source: DG ENER based on  EUROSTAT and DG ECFIN/AMECO 

Source: DG ENER based on  EUROSTAT and DG ECFIN/AMECO 

Specific energy consumption by households is below EU average and decreased  faster than the EU 
average. The specific energy intensity of passengers cars decreased slightly between 2000 and 2010 
which  reflects  a  more  efficient  usage  of  cars  (i.e.  higher  stock,  maybe  more  efficient  but  fewer 
passengers per car). The specific energy intensity for freight transport is however much higher than 
EU average. 

Final  energy  consumption  per  m2 
residential sector, climate corrected 

in 

Specific energy intensity for passenger cars and freight 
transport4  

Source: DG ENER based on  Odyssee database 

Source:  PRIMES  model  background  data  and  estimations  based  on  EU 
Commission and EU MS inputs   

EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the 
fleet average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet 
average is set at 147 g/km by 2020. 

Source: European Environmental Agency. 2014 values are provisional. 2013 EU average refers to EU-27. 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by 
rail, 7% by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 

4  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
  
 
                                                                 
Towards an Energy Union - Ireland 

82% by private car, 9% by buses and coaches, 7% by railways and 2% by tram and metro. In Ireland, 
freight and passenger transport is almost exclusively performed by road transport. 
The roll out of electric car charge points began in March 2010 in Dublin and currently there are 1.200 
public  charge  points  deployed  across  the  country,  including  fast  chargers  along  main  inter-urban 
routes.  The  IT  and  payment  systems  being  implemented  will  have  open  accessibility  for  all  energy 
supply companies and all types of electri cars.  

Modal shares Ireland 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and 
passenger-kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

4. Decarbonisation of the economy 

NON-ETS GHG EMISSION REDUCTION TARGET 2020 
(-20% by 2020 as compared to 2005 in the non-ETS sector) 

Ireland has decreased its emissions by 13% 
between  2005  and  2014 
(based  on 
approximated  data).  According  to  its  2015 
projections, Ireland is not on track to reach 
its  2020  target,  with  a  10%  gap  as 
compared to 2005. 

Non-ETS Emissions 
(vs. 2005) 

Projections/
proxy 

Projections with 
existing measures 
2020 

Proxy 2014 

-10% 

-13% 

target 

-20% 

-6% 

Source: DG CLIMA  based on EEA. Based on preliminary inventory data. 

ESD  (Effort  Sharing  Decision)  emissions  are  the  emissions  not  covered  by 
the EU ETS 

Unlike in comparable Member States and according to projections with existing measures, transport 
emissions are expected to increase by 19% between 2013 and 2020 in the absence of investment in 
public transport for instance in the city of Dublin. Agriculture emissions will be stable (2% increase 
during the same period). In this sector, Ireland has identified cost efficient abatement measures but 
has not taken action yet.  

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Ireland 

RENEWABLE ENERGY SHARE TARGET 2020 (16%) 

Ireland 

With a share of 8% of renewable energy in 
its  2013/14 
is  close  to 
2013, 
interim targets as set out in the Renewable 
Energy  Directive.  However,  the  existing 
policy,  market  and  budget  framework 
appears  to  be  insufficient  to  enable  the 
step-wise  achievement  of 
the  2020 
objective (16%).  

Source: DG ENER based on  EUROSTAT 

GREENHOUSE GAS EMISSION  INDICATORS 

 

In Ireland the Agriculture sector is the largest in terms of share of total emissions, with a 
value that is nearly three times the EU average.  

  As a result, Irish emissions per capita are among the highest in the EU. 

Largest Sectors of GHG Emissions in 
2012 (*) 

Energy/power industry 

Transport 

Industry  

Agriculture (incl. forestry & fishery) 

Residential & Commercial 

Waste & others 

Ireland 

EU Average 

22% 

19% 

11% 

32% 

14% 

2% 

33% 

20% 

19% 

12% 

13% 

3% 

GHG Emissions 

Ireland 

EU 

EU ETS auctioning  revenues 
in 2014 (EUR millions) 

36 

3205 

Share of ETS emissions 2013 

27% 

42% 

12.8 

GHG emissions/capita in 
2013 (tCO2equivalent) 
Carbon intensity of the 
economy in 2013 
(tCO2equivalent/EUR 
millions) 
(*)Sectoral breakdown for 2013 data not available.  

Source: DG CLIMA  based on EEA 

347 

8.5 

328 

ENERGY AND TRANSPORT TAXATION 

Over the period 2005 – 2012, the taxation of energy and transport in relation to GDP in Ireland fell 
slightly from just above the EU average (which as a whole has hardly changed) to just below it.  This 
decrease results as a balance of different elements: on the one hand, a decrease in the share of the 
taxes  on  transport  vehicles  to  GDP,  quite  likely  largely  due  to  the  rebalancing  registration  and 
circulation taxes on a carbon basis being more successful than predicted; on the other hand, a small 
increase in the taxation of heat and electricity. The taxation of transport fuels expressed as a share of 
GDP hardly changed. 

8 

 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Ireland 

Source: Eurostat 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

Whereas Ireland may be below the EU average, the US and Japan and South Korea in terms of public 
support share allocated to research and innovation in the field of energy and environment, energy 
R&D is conducted across a wide range of institutions. SMEs have also a significant participation. Irish 
organisations  have  participated  in  energy  related  research,  development  and  demonstration 
projects.  

In terms of intensity of low-carbon technologies patents, Ireland is also behind the EU average and 
main worldwide partners. 

Ireland is carrying out research on ocean energy research primarily by the Science Foundation Ireland 
MaREI Centre, but also has several test centres (e.g. the National Ocean Test Facility, the Dublin Bay 
Digital  Diamond  and  the  Atlantic  Marine  Energy  Test  Site).  SmartBay  Ireland  manages  the  national 
marine test facility for the development of innovative products and services for the global maritime 
sector.  

Source: DG ENER based on  EUROSTAT   

9 

0.01.02.03.0IEEU-28Energy & Transport related taxes % of GDP, 2005TransportvehiclesTransport fuelHeat &Electricity0.01.02.03.0IEEU-28Energy & Transport related taxes % of GDP, 2012TransportvehiclesTransport fuelHeat &Electricity 
 
 
 
 
 
 
 
 
Towards an Energy Union - Ireland 

COMPETITIVENESS 

Real unit energy costs (% of value added) 

The  real  unit  energy  costs 5  in  Ireland  have 
remained much lower than in the EU or in the US 
since  2000.  However,  no  data  is  available  to 
break  down  this  development  into  energy  price 
and energy intensity factors.  

However,  electricity  and  gas  prices  paid  by 
industrial  customers  are  higher  than  the  EU 
average.  Such  prices  are  also  higher  than  the 
OECD average. 

Source: DG ECFIN 

Source: European Commission based on EUROSTAT and IEA 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG-TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY  

 

 

 

 

Ireland  is  currently  developing  a  medium  to  long-term  strategy  for  climate  and  energy 
covering the period beyond 2020. 
Ireland  is  developing  a  new  energy  policy  framework,  which  is  currently  under  public 
consultation. The outcome of the consultation will contribute to the preparation of a White 
Paper  (expected  publication  in  2015)  which  will  serve  as  a  basis  for  establishing  a  2030 
energy policy framework. 
Ireland will define its 2030 objectives based on the outcome of the negotiations on the 2030 
framework at the EU level. 
In April 2014, a National Policy Position on Climate Action and Low-Carbon Development was 
published.  A  related  Bill  on Climate Action  and Low  Carbon Development  was  published  in 
January 2015 and is progressing through the legislative process. The Policy Position and the 

5  

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 

10 

4.09.58.26.013.28.85.813.78.00246810121416IEEU27US200020092011 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Ireland 

 

Bill  propose  a  series  of  successive  five-yearly  national  mitigation  plans  with  a  focus  up  to 
2050. In anticipation of the enactment of the Bill, Ireland's first National Mitigation Plan to 
2050 is currently being developed, incorporating specific elements from each of the four key 
sectors: electricity generation, the built environment, transport and agriculture. 
Ireland,  along  with  Northern  Ireland,  is  currently  reforming  the  single  electricity  market  in 
order to make it compatible with the EU target model – this is due to be completed in 2017 
in  order  to  comply  with  the  transitional  arrangements  for  market  coupling  set  out  in  the 
regulation  establishing  a  guideline  on  capacity  allocation  and  congestion  management.  As 
part of this, they are also reforming the way in which capacity is remunerated (currently they 
operate  a  capacity  payment  mechanism)  and  have  proposed  a  new  design  for  a  capacity 
mechanism  taking  into  account  the  specificities  of  the  Irish  energy  system  such  as  small 
market  size,  peripherality  and  insularity.  This  will  need  to  be  in  line  with  the  State  Aid 
guidelines and consistent with the objectives of the EU internal energy market. 

NATIONAL TARGETS, especially for 2030 

Objective, 2030-2050 

Targets 

GHG reduction  

No 

Comments 
National  Policy  Position    No  target  for  2030,  but 
post-2020  is  captured  in  the  transition  objective  for 
2050 which has a vision of an aggregate reduction in 
CO2  emissions  of  at  least  80%  (compared  to  1990 
levels) by 2050 across the electricity generation, built 
environment  and  transport  sectors  and  an  approach 
to  carbon  neutrality  in  the  agriculture  and  land-use 
sector, 
forestry,  which  does  not 
compromise capacity for sustainable food production.  

including 

Renewable energy share  No 
No 
Energy 
Efficiency 
savings 

/ 

7. Regional cooperation 

Regional  cooperation  on  infrastructure  development  is  necessary  to  optimise  the  identification  of 
regional infrastructure priorities and to coordinate cross-border investments.  Ireland is a member of 
three  Regional  Groups  which  have  been  established  under  the  TEN-E  Regulation:  Northern  Seas 
Offshore  Grid,  North  South  Electricity  Interconnections  in  Western  Europe,  and  North  South  Gas 
Interconnections in Western Europe.  

Ireland and Northern Ireland have set up the Single Electricity Market of the island of Ireland, with  
shared  regulatory  governance and  regulatory  functions.  It was  originally  established in 2007  and  is 
currently being reformed.  

Considerable work has been undertaken, jointly with the UK, on a renewable energy export market, 
which would be underpinned by an Inter-Governmental Agreement. However, given the economic, 
policy and regulatory complexities involved delivery of renewable energy trading before 2020 is not 
realistic.  Ireland has no concrete new plans for further regional co-operation after the arrangements 
for renewables trade with the UK were abandoned. 

Given Ireland's dependency on the UK for its gas supply, it cooperates closely with UK authorities on 
security of supply and wholesale gas market issues. 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Ireland 

8. Cohesion policy contribution 

The EU Cohesion policy provides for investment possibilities to implement energy policy objectives in 
Ireland  which will  be  complemented  by  national public  and  private co-financing,  aiming  at  optimal 
leverage. It also ensures integrated territorial solutions to challenges by supporting capacity building, 
technical assistance and territorial cooperation. 

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  85  million  in  energy 
efficiency improvements in residential buildings in Ireland. A further estimated EUR 3 million will be 
invested in supporting the move towards an energy-efficient, decarbonised transport sector in urban 
areas.  These  investments  are  expected  to  contribute  to  around  30  000  households  with  improved 
energy consumption classification. 

Decarbonisation: Overall, the EU Cohesion Policy investments in Ireland over 2014-2020 are expected 
to  contribute  to  an  estimated  annual  decrease  of  GHG  of  around  14  000  tonnes  of  CO2eq.  No  EU 
Cohesion Policy investments in renewable energy infrastructure foreseen in Ireland over 2014-2020; 
investments will be carried out by national funding in Ireland. Research and innovation in the area of 
renewable energy may be supported. 

Research,  Innovation  and  Competitiveness:  Over  2014-2020,  EU  Cohesion  Policy  will  invest 
significantly in R&I and in SME competitiveness in Ireland. This will be based on the national strategy 
for  smart  specialisation.  For  Ireland,  the strategy  includes  a  focus  on  14  research  priorities,  one  of 
which is marine renewable energy. At this stage, the allocations foreseen for investments in R&I and 
adoption of low-carbon technologies in Ireland are not specified, but should become available in line 
with the evolving content of the smart specialisation strategy. 

12