Powering Tomorrow: Securing Ireland’s energy future

Renewable energy is not just about meeting emissions targets. On the path towards net zero, Ireland has the potential to accelerate growth in its renewable energy sector, which will bolster the economy, provide energy security and independence, and if managed and planned correctly, make the country a net energy exporter, writes KPMG’s newly appointed Head of Energy, and Natural Resources, James Delahunt.

Capitalising on this opportunity requires mobilisation and buy-in across the country. Acceptance of infrastructural investment, education and engagement across communities, and strong political leadership are key to unlock Ireland’s vast energy potential.

Understanding attitudes

For the second year in a row, KPMG in conjunction with Red C has conducted a broad survey of Irish people and their attitudes to all elements of the energy transition. These findings are broken down into four categories: Supporting renewable energy, carbon-reducing behaviours, adopting electric vehicles, and climate change concerns.

KPMG’s research shows that renewable energy developments have widespread support amongst the Irish populace. The necessary public investment and supporting infrastructure are less popular, although support grows if such projects support local communities. Over 70% are positive towards offshore wind; onshore wind and solar energy; and railways, bus lanes and cycle lanes, with support highest among 18–24-year-olds and residents of Dublin. However, only 36% support high-voltage lines and pylons, which are crucial to the development of renewable energy generation assets. Interestingly, over 70% are more likely to back such projects if they create local jobs and support local business. On the investment side, the majority of respondents would not be willing to pay higher taxes to facilitate the energy transition. Overall, it is clear that educating and engaging citizens on the local benefits of the energy transition is crucial to garner support.

Reducing carbon

Carbon-reducing behaviours are essential to limit emissions on an individual level. KPMG’s survey found that a significant majority is willing to adapt some form of carbon-reducing behaviours. However, support varies widely depending on type of behaviour and age-group. The likelihood to adopt behaviours is closely tied to generational bands and economic situations. For instance, older adults (55+) show stronger support for home energy efficiency measures as they are more likely to be homeowners, while younger adults (18-34) are more inclined to choose active modes of transport and public transportation. Some behaviours are common across generations: The number of respondents who had switched energy suppliers over the last 12 months was particularly low (24%) considering price inflation and the variety of attractive deals offered in the market.

Declining EV sales

Electric vehicles decreased in popularity from last year’s survey, with price increasingly a barrier to adoption. In agreement with SIMI (Society of the Irish Motor Industry) reports of a 24% decrease in electric vehicle registration from 2023 to 2024, survey respondents that cited price as the main barrier to EVs grew from 50% last year to 57% this year. The reduction in EV grant from €5,000 to €3,500 in mid-2023 is a likely contributor to the decrease in sales. Still, there is hope for the future of EV sales. 12% of respondents expressed a strong interest in switching to a type of EV, with strongest support at 30% from the 18-34 age bracket. Given SEAI estimates that switching to EVs can provide 50-60% fuel cost savings, increased awareness of the long-term economic benefits of EVs is likely to stimulate further interest.

Climate worries

According to KPMG’s survey, the majority of Irish adults (57%) are concerned with the effects of climate change. A potential generational divide is revealed by the fact that those in the age groups of 65+ and 18-34 report markedly higher levels of concern (62%) compared to those in the 45-54 bracket (46%). Only 6% believe Ireland’s 2030 target of 51% emission reduction is achievable, which, in light of recent projections of a 29% reduction by the end of the decade, is not too surprising. However, considering the high level of climate change concern in Ireland, this highlights the importance of empowering individuals and local communities in contributing to Ireland’s decarbonisation journey.

In conclusion, KPMG’s Powering Tomorrow shows a generally positive perspective on the energy transition among the Irish populace. However, it is clear that education and community engagement are required to increase the understanding of the long-term positive economic benefits of infrastructure investment and capital expenditure in the energy transition on local communities. The positive attitudes revealed in this survey show promise for unlocking Ireland’s energy potential if people, government, and industry stakeholders are mobilised in time.

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James Delahunt
Head of Energy, and Natural Resources
KPMG