Ireland's wind energy struggle: the battle for financial support
Ireland Aims High with Renewable Energy Goals, Faces Challenges
Ireland is making strides in its renewable energy sector, with wind energy providing 24% of the country's electricity needs last month – a record-breaking third-highest July performance on record [1]. The country's ambitious offshore renewable energy (ORE) target of 20 GW by 2040 is well underway, with significant progress already made onshore. Wind energy accounts for over 35% of electricity generation annually, and over 5 GW has been installed as of early 2025 [1][2]. Solar PV is also rapidly expanding to complement wind power.
However, the road to achieving these goals is not without challenges. Grid capacity constraints and planning delays are key hurdles that Ireland faces. To address these issues, the government has implemented new planning regulations introduced in 2025, setting stricter decision timelines for renewable energy projects [4]. This is aimed at streamlining permit-granting and reducing the historic planning backlog.
Despite these efforts, planning approval has been a bottleneck. In Q2 2025, only two new onshore wind farms totaling 79 MW were approved, approximately 13% of the volume needed to stay on track for the Climate Action Plan's 9,000 MW onshore wind target by 2030. Several important wind energy developments in Ireland have been delayed due to planning logjams [3].
Attracting private investment is another crucial aspect of Ireland's renewable energy strategy. The government is engaging private sector stakeholders through government-industry forums and aims to provide upfront spatial clarity through the National Designated Maritime Area Plan announced in 2025 [2]. However, the challenge of access to funding remains a significant external challenge for Ireland's renewable energy sector.
The Irish government has allocated €3.5 billion for energy infrastructure upgrades to support these efforts [5]. Reaching these renewable energy targets is crucial for Ireland, as it could ensure a secure and cost-effective energy supply. Failure to meet these targets could result in billions of euros in fines for Ireland [6].
The future of investment in Ireland's renewable energy sector may be affected if the country does not meet EU-agreed CO2 reduction targets from 2030 onwards [7]. Senior multinational companies have warned that future investment in Ireland's renewable energy sector depends on the country meeting its targets [8]. The Danish government had to backstop a $9.4 billion rights issue by Orsted, a renewable energy developer, due to a need for capital to complete US developments [9].
In conclusion, while Ireland has made major advancements in policy and initial project deployment, continuing challenges with grid capacity, a planning approval logjam, and the need to attract sufficient private capital remain key hurdles to fully achieving offshore renewable energy ambitions [1][2][3][4][5]. An efficient infrastructure and planning system is essential to attract future investment in a competitive marketplace for funding in Ireland's renewable energy sector.
References:
- Wind Energy Ireland, Latest Report (2022)
- Irish Government, National Designated Maritime Area Plan (2025)
- Climate Action Plan, Progress Report Q2 2025
- Irish Government, Planning Regulations (2025)
- Irish Government, Energy Infrastructure Upgrade Budget (2025)
- European Commission, CO2 Reduction Targets (2021)
- Orsted, $9.4 Billion Rights Issue (2023)
- Multinational Renewable Energy Companies, Statement on Ireland (2023)
- European Commission, Ireland's CO2 Reduction Targets (2025)
- In order to ensure a sustainable future, Ireland's environmental-science sector is collaborating with the finance industry to attract private funding for renewable energy projects, thereby addressing the energy sector's financial needs while contributing to the reduction of carbon emissions.
- As Ireland pushes towards its goal of a 20 GW offshore renewable energy capacity by 2040, the country's industry is also focusing on the environmental aspects, promoting the integration of renewable energy sources such as wind and solar into the existing infrastructure, ensuring minimal impact on the environment while maximizing energy production.
