Ireland's remarkable economic growth over the last 15 years had strong

effects on the energy sector. Due to rapidly increasing demand, Ireland

has become much more dependent on international energy markets than

it was in the past. For Irish energy policy, 2007 is a watershed year. It marks

the end of the transition in market liberalisation with the introduction

of a unified Irish electricity market. In addition, the publication of

a new energy policy should help to ensure future security of supply

and bring further environmental improvements of energy use.

Ireland is highly dependent on oil and increasingly dependent

on natural gas. The price of these two commodities has strongly

increased recently, which results in a heavy burden for the Irish

economy and a risk for energy security. The main alternative

on the supply side is coal and peat, which causes greenhouse

gas emissions to rise much faster than expected.

This review analyses the energy challenges facing Ireland and

suggests solutions, focussing on moving ahead with market

reform and increasing the energy efficiency of the Irish

economy. Establishing the "All-Island" electricity market

will be of critical importance. Sharper focus on energy

efficiency in all sectors of the economy, but in particular

in transport and buildings, must be a priority.

Finally, to achieve its ambitious goals for renewables

in energy supply, Ireland will have to provide

ample resources for research and development,

to allow technologies such as ocean power

to move from the laboratory to the market.