The money will be invested despite overcapacity in existing power-generation systems to ensure we meet the EU targets, the stockbroker said. Individuals and businesses are subsidising the programme through higher energy bills.
“Authorities in both the Republic of Ireland and Northern Ireland have made substantial binding commitments to meet EU climate-change targets by 2020,” Davy analysts write in the new report. “These include generating 40pc of electricity requirements from renewable resources in each jurisdiction.”
The Republic produces 17pc of its energy from renewable energy, while the North produces 14pc from renewables. That’s less than a third of the 40pc agreed under EU treaties. Analyst Barry Dixon said in an interview that he believes the Government will meet those targets.
Most renewable energy in Ireland comes from windmills located on hills rather than out at sea.
– Thomas Molloy