Fossil fuels made up over 81% of Ireland’s energy use last year, according to a new report by KPMG.
The report noted a fall in emissions despite rising energy demand. Fossil fuels remained Ireland’s primary energy source in 2024, making up 81.4% of the primary energy supply. There was an increase in fossil fuel use of 0.7% from 2023, despite falls in coal and peat usage.
The report also shows a heavy dependence on natural gas, which fuelled 42% of electricity generation last year.
The data from KPMG shows that Ireland now ranks 8th globally for wind and solar penetration as a share of total electricity generation however, despite the fact that the growth in electricity demand outpaces the development of renewables.
According to the analysis, despite significant advancements, Ireland still faces hurdles in securing enhanced energy sustainability.
James Delahunt, Head of Energy & Natural Resources, KPMG in Ireland, commented:
“The statistical review shows that Ireland has the capability and resources to build on the successes delivered in 2024.
“However, growing strategic risks underscore the need to prioritise policies and initiatives that will efficiently and cost-effectively deliver renewables and system flexibility to phase fossil fuels out of the economy.”
It comes as the growth in electricity demand outpaces the development of renewables, with domestic energy demand rising by 4.1% last year. The share of renewable generation meanwhile decreased marginally from 40.7% in 2023 to 39.6% in 2024.
Sustainable progress has been made, evidenced in a 71% increase in solar power production (serving 3% of electricity demand). However, Ireland still faces challenges in meeting the target of 80% renewable energy by 2030. Failing to meet EU targets is also a concern – with a report published in April warning that Ireland must “act now” or face paying significant compliance costs of between €8 billion and €26 billion to other EU member states if it doesn’t reduce emissions.
The warning came via a joint report from the Irish Fiscal Advisory Council (IFAC) and Climate Change Advisory Council (CCAC).