Ireland's remarkable economic growth over the last 15 years had strong
effects on the energy sector. Due to rapidly increasing demand, Ireland
has become much more dependent on international energy markets than
it was in the past. For Irish energy policy, 2007 is a watershed year. It marks
the end of the transition in market liberalisation with the introduction
of a unified Irish electricity market. In addition, the publication of
a new energy policy should help to ensure future security of supply
and bring further environmental improvements of energy use.
Ireland is highly dependent on oil and increasingly dependent
on natural gas. The price of these two commodities has strongly
increased recently, which results in a heavy burden for the Irish
economy and a risk for energy security. The main alternative
on the supply side is coal and peat, which causes greenhouse
gas emissions to rise much faster than expected.
This review analyses the energy challenges facing Ireland and
suggests solutions, focussing on moving ahead with market
reform and increasing the energy efficiency of the Irish
economy. Establishing the "All-Island" electricity market
will be of critical importance. Sharper focus on energy
efficiency in all sectors of the economy, but in particular
in transport and buildings, must be a priority.
Finally, to achieve its ambitious goals for renewables
in energy supply, Ireland will have to provide
ample resources for research and development,
to allow technologies such as ocean power
to move from the laboratory to the market.
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