By 1925, hydro and wind power along with conventional coal, peat and gas were all being utilised to generate electricity, despite relatively low demand. Half of the population at this time worked in the agriculture sector and Ireland was unable to export much except for Guinness, Jacobs biscuits and agricultural produce. The social conditions often comprised of high density, poor quality housing, low wages, and an oversupply of labour. Following the civil war, Ireland had a declining population and the cost of the war – including rebuilding, compensation and financing the army – was 170% of the State’s annual income.

1927 – Electricity Supply Board established 

The development of an electricity network in Ireland formally began with the passing of the Electricity Supply Bill in 1927. The Electricity Supply Board (ESB) was established to provide a safe, reliable and economic supply of electricity to the community. The first hydropower station was commissioned at Ardnacrusha in 1929 and other existing power stations were acquired. The fact that the output from the Shannon Scheme was twice the existing generating capacity in the state at the time indicates its relative magnitude. With the completion of the Shannon hydroelectric scheme only 85 gasworks remained due to the difficulties in importing coal after the war and the advance of state aided electricity.

The beginning of the electricity grid created the framework for the social, economic and industrial development of the country. Energy demand almost doubled during the 1930s; additional generation units were commissioned and the transmission network was expanded. Government policy intended to reduce unemployment and create an Irish industrial sector. A scheme to organise the production and sale of hand-won turf was established in 1934 and negotiations began to build a turf fired power station despite initial reservations about increasing costs and uncertainties of supply. Policy aimed to ensure that turf districts would be self-sufficient and that coal would only be used in non-turf areas. This changed with the advent of World War II in 1939.

 1939 – World War II

As World War II continued coal quality deteriorated and difficulty in procuring coal resulted in the rationing of electricity. Stoppages of coal for domestic use led to greater reliance on gas. Soon gas was only available at reduced amounts for fixed hours. Petrol rationing was introduced as early as 1939 and the bulk of supplies which came from Britain were soon cut. Alcohol factories were bought and the government forced the oil companies to use alcohol for blending with motor spirit. By early 1942 policy favoured distillation of turf and aimed to secure and transport the maximum quantity of turf to Dublin at any cost. Stockpiles were laid down and briquettes, which had a higher calorific value, were allocated to priority industries such as bakeries, distilleries and railways. The establishment of Bord na Mona at this time made a significant contribution to both indigenous energy production, and industrial and socio-economic.

The post-war upsurge in demand led to the creation of the Rural Electrification Scheme from 1946 onwards. Under favourable hydro conditions it was possible to supply the unprecedented growth in demand in the first few years. The generation plant mix was supplemented by additional hydro, peat, indigenous coal and coal/oil units. While bad weather slowed peat production and virtually all machine turf was disposed of to the ESB and industry, a few years later, during the 1956 Suez Crisis, electricity rationing was avoided in part thanks to the ability of affordable peat-fired power stations to operate. At that time Ireland was dependent on petroleum for 39% of its energy needs in response to increasing demand for energy to underpin industrial, commercial, transport and societal activity. A consortium of oil companies established an oil refinery at Whitegate in 1958.

1960s

Peak demand exceeded 1,000 MW for the first time in the 1960s due to high growth in domestic and general heating, industrial development, and higher living standards in a population of 2.8 million. Interestingly, by 1966 over half the homes in Ireland had a TV set. The fruits of the First Programme for Economic Expansion of 1958 had begun to feed through to the Irish economy. Motoring became more popular for work, social and leisure activities, electricity demand grew, emigration slowed and the prospects for the future brightened as Ireland invested in its educational and economic infrastructure. In 1968, construction began on Turlough Hill, Ireland’s pumped hydro facility, as population grew and demand for electricity increased. Plans began for a north-south interconnector and new peat fired units were augmented with oil fired plants since oil was then a comparably cheap fuel.

 1970s – energy crisis

The first oil crisis in 1973 followed by economic recession and a second oil crisis at the end of 1979 led to major fluctuations in the demand for electricity. The impact of the oil crisis on the cost of electricity was substantial as 2/3 of the total demand at the time relied on imported oil. The price gap between coal and oil sustained the demand for imported coal in the residential market and led to a revised appreciation of its value, hedging against risks to the security of the energy supply. Flexibility in ESB’s major contracts facilitated cutbacks in reaction to the recession, inflation and the oil crises. Peat still provided a valuable primary energy source, but proposals to increase peat were not sufficient, so pre-contract stages for a nuclear station began and a feasibility report was completed for an interconnector with Wales.

1970s – exploration, natural gas, and heating

Although the first oil and gas licence was granted in 1958, exploration was slowed by the depth of Irish waters off the West coast and the strong Atlantic weather. Between 1975 to 1985, 73 exploration wells were drilled, preceded by a fortunate discovery of the natural gas off Kinsale in 1971 with estimated reserves of £6 billion (1980s prices). It took two years to prove Kinsale gas field’s commerciality and three years after that in 1976 the gas was landed. Bord Gais Eireann was established in 1976 as a modern state-owned utility responsible for the purchase, sale, transmission and distribution of natural gas. A state owned fertiliser manufacturer and the ESB were the first to rely on this new source of energy. Flexibility to allow a range of primary energy sources was prioritised over the decade; an issue which became urgent due to the increasing oil prices and uncertainty about the continuity of supply. In addition, Ireland had joined the European Union in 1973 and began to interact with other countries in setting overarching sectoral policies. The introduction of thermal insulation standards for new homes in the late 1970s marked the first attempt to improve the energy performance of buildings in Ireland with solid fuels more popular as a means of heating than oil or gas.

1980s

The response to the second oil crisis of 1979 was more policy led with active participation in international strategy when making investment decisions. One of these was the construction of a new coal-fired power station at Moneypoint, County Clare (which went into commercial operation in 1986); aligning with the abandonment of a proposal to build a nuclear power station at Carnsore Point, County Wexford. Demand had decreased slightly due to the economic recession following the second oil crisis but by 1985 there was an improvement in public finances, production was rising and there were signs of sustained growth in employment due to competitive corporation taxes, greater access to third level education, and social partnerships between the government and trade unions. At the end of the 1980s the Ballycotton gas field was discovered, possibilities for wind and wave were being studied, and combustion turbines provided flexibility to meet fluctuating demand. However, this was still a difficult time for investment due to the long lead times, high capital costs of generation plants, uncertainties about the pace of economic growth, and the possibility of interconnection with external electricity networks.

1980s – heating and smog

In the heating sector, grants were introduced for the installation of solid fuels and central heating appliances. Within a decade however, what had been an energy crisis became a health issue in Dublin in particular with the regular occurrence of smog-like conditions on cold winter evenings in the capital. The Air Pollution act came into effect in 1990 with a ban on the sale and supply of bituminous fuels in the Dublin area. This was expanded to more areas as its effectiveness in reducing emissions became apparent. The banning of smoky coal opened up a new market for smokeless fuels and of these natural gas was by far the most competitive.

1990s – diversification, EU support and regulation

By the 1990s Ireland was heavily dependent on energy imports and the government looked towards expanding its energy portfolio. This saw, with EU support, the establishment of Ireland’s first wind-farm in 1992 at Bellacorick, County Mayo. This was a first step in the re-exploitation of Ireland’s wind resource and showed how cut over bog could be developed economically. EU support of Ireland’s energy policy was conditioned by the Commission’s awareness of the EU’s dependence on imports to meet its energy needs. While there was no provision in the Community Treaty for an energy policy, the EU recognised that it was in its long-term interest that one should evolve. In 1996 the EU adopted its first package of legislative measures aimed at liberalising the electricity and gas markets of the Member States. This marked the beginning of a major restructuring of the gas and electricity utilities in Ireland. The creation of the Commission for Energy Regulation through the Electricity Regulation Act in 1999 opened the market to competing suppliers. The building efficiency legislation was also strengthened and expanded to cover all new buildings and include provisions to such items as heating and lighting systems. Following some initial resistance, based on concerns about impacts on construction cost, the long term benefits and the capacity of the industry to adapt and innovate were recognised and energy efficiency has become an integral consideration in building design. The government also established a national energy conservation programme, which was initiated in 1994, to promote the reduction of waste and the more efficient use of energy across the economy.

1990s – gas

Gas prices in Ireland were affected by the Kuwait escalation of oil prices in 1990 and a decision to construct a gas pipeline to the UK was made. By 1994, BGE was serving 222,600 domestic customers and about 8,000 commercial and industrial customers. The ESB was its largest single customer, receiving 42% of all gas delivered. About a quarter of the fuel used in electricity generation in 1994 was indigenous natural gas. In 1996, Enterprise Oil announced the discovery of the Corrib Gas Field. Appraisal wells were also drilled off Cork and a small find was declared commercial in 2003. With indications that electricity demand would keep growing with the growth in the Irish economy in the 1990s, demand side management and investment in CHP and renewable energy aimed to reduce the requirement for new generation plant as well as reducing environmental emissions. A second gas pipeline to the UK was built in 2002.