80% of Dublin's energy needs 'exposed to price increases outside of our control'
Energy prices in Dublin sit in uncertainty as global economic instability leaves many sectors vulnerable.
In light of current macro economic instability, Dublin City Council economist Juliet Passmore delivered a presentation to representatives at Tuesday’s Economic Development and Enterprise SPC. With 80% of Ireland’s energy needs “exposed to price increases outside of our control,” she said transport and agriculture are hit particularly hard by changing energy prices.
Looking at the global indicators, Ms Passmore highlighted the findings of the World Uncertainty Index which tracks uncertainty across the globe. Having seen major spikes in recent years due to things like Brexit and the pandemic, it “spiralled to heights never before seen” following the beginning of United States President Donald Trump’s second term in 2024.
While these figures had started to recede, renewed conflict in the Middle East has caused further points of concern. Higher uncertainty means delayed investment by government, businesses, and households, with Ms Passmore stating oil prices have seen a 44% increase year-on-year while gas prices have actually reduced 30%.
The sharp increase in oil prices has a detrimental effect on the Irish economy , as around half of the country’s energy is oil driven. Ms Passmore explained that about a fifth comes from natural gas, a fifth electricity, and just 10% from renewables.
With households reliant on both oil and gas, its net impact is uneven. Tourism is also shifting towards the negative as transport costs, uncertainty around fuel, and kerosene prices cause further uncertainty.
Fianna Fail Councillor Rory Hogan questioned Ireland’s energy prices, wondering why the country has borne the brunt of the highest electricity increases in the European Union “by quite margin". Ms Passmore explained the reasoning for this is threefold and actually not entirely related to the economic instability caused by conflict in the Middle East.
She said that the “we don’t produce any energy in Ireland at all” means it is all imported, which inflates prices. An expensive electricity network due to a dispersed population around the country also contributes to higher costs. As well as an increased use of electricity by data centres. “This all feeds into Ireland having higher electricity prices in general, even outside of the crisis,” she said.
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