Energy transition could generate €19 billion a year – SEAI
A new report from the Sustainable Energy Authority of Ireland (SEAI) estimates that Ireland’s energy transition will drive up to €19 billion per year of new business by 2030.
It said Irish based companies have the potential to capture up to 42% of that amount.
The report is being launched at the SEAI Energy Show in the RDS.
The report examines in detail how well Irish enterprises are positioned to capture new business opportunities arising from the ongoing transition to sustainable energy systems in Ireland and beyond.
It found that the main opportunities for Irish companies will be in construction, engineering, and financial services, as well as service and equipment delivery by local enterprises.
Apart from the power sector, Ireland’s main focus is the decarbonisation of transport, buildings, and industry.
This is being driven by measures such as electric vehicle incentives, building energy efficiency upgrades, and support for industrial fuel switching.
Underpinning these efforts is a key focus on enhancing Ireland’s energy security by reducing reliance on imported fossil fuels.
The report said the total capital expenditure by 2030 associated with this transition could amount to between €17bn and €19bn per year in Ireland alone.
The majority of the investment is anticipated to be in low carbon transport, energy in buildings and renewable electricity generation.
The report highlights Irish companies have the potential to capture €2.5bn of new business in efficient construction, almost €1.7bn in electric vehicle business, and a similar amount of new business in the provision of sustainable biomass heating for buildings.
It also highlights big opportunities for Irish companies in the provision of smart grids, solar panels, smart buildings and homes, and biomass anaerobic digestion.
Although Ireland is unlikely to manufacture the key components of the technologies highlighted in the report, the SEAI said local enterprises could still capture a share of the market by providing some services and equipment.
However, for that to happen the report said it is essential to direct sufficient funding towards enhancing and expanding local manufacturing facilities and service businesses.
Looking beyond Ireland, the report also points to new business potential in EU-27 and UK markets, which it estimates could grow to more than €1.5 trillion per year.
It said this growing international market offers an export opportunity for Irish suppliers of sustainable energy products and services.
However, it notes that Irish companies currently have limited capabilities to effectively engage with those EU and global markets.
Nevertheless, it found that Ireland has a wealth of wind and ocean energy potential and that building a strong local market can help create a springboard for Irish companies to start exporting to wider markets by showcasing Irish products and services and enabling companies to establish revenue streams.
Minister for Climate, Environment and Energy Darragh O’Brien said the report highlights that this energy transition will deliver for both our planet, and our economy, creating significant opportunities for Irish businesses in the supply chain where Ireland is well positioned to capitalise.
“I look forward to collaborating with my colleagues across government, and industry partners to deliver on this opportunity, and continue to position Ireland as a leader in the energy transition,” he said.
Article Source – Energy transition could generate €19 billion a year – SEAI – RTE
