Irish business leaders are concerned about securing sufficient reliable energy to meet their future needs, according to new EY Ireland research.
With energy increasingly seen as a critical enabler of growth for businesses rather than just an operational cost, almost seven in ten (68 per cent) Irish businesses are worried about securing enough energy to meet future needs.
While more than six in ten (62 per cent) say that rising and unstable energy costs are already impacting profitability and competitiveness.
In response to these challenges, businesses are planning to take a more active role in securing their own energy needs.
Almost all businesses surveyed (96 per cent) say that they are willing to pay more for quicker access to renewables, for example via Corporate Power Purchase Agreements, while the installation of on-premise renewable generation and storage is an increasing focus for business leaders.
The findings are part of the latest EY Navigating the Energy Transition report, which surveyed over 2,400 decision-makers across eight countries, including 125 respondents in Ireland.
The research underscores the urgent need to increase overall energy supply, in particular of renewable energy, and the opportunity for providers to support businesses through their business transformation.
Global electricity demand is forecast to double in the next 25 years, with three quarters of this anticipated to be as a result of increased business need.
In Ireland, over 85 per cent of businesses surveyed expect their electricity consumption to increase in the very near term, with most sectors indicating a rise of more than 10 per cent in the next three years.
This demand is expected to be driven by a range of factors, including new equipment (42 per cent), electric vehicles (41 per cent), technology and data centres (40 per cent) and increased use of artificial intelligence (40 per cent).
Sean Casey, energy sector leader at EY Ireland, said: “A secure, stable and sufficient energy supply is no longer just a commodity for businesses, increasingly it’s a competitive asset that can enable or inhibit growth and operations, particularly during periods of global energy price and supply uncertainty such as at present.
"Globally and here in Ireland, businesses are driving an era of unprecedented growth in energy demand, whether via energy-intensive new equipment, accessing the transformative potential of AI or continuing the shift towards Electric Vehicles.
"Successfully navigating this growth, beyond simply keeping the lights on, will not be simple and businesses are increasingly getting ‘hands-on’ when it comes to their energy use.
"Positively, almost all Irish businesses surveyed are willing to pay more for quicker access to renewables. Businesses are increasingly looking at on-site generation and self-sufficiency, whether via solar panels, battery storage, or the use of smart technology to optimise energy use.
"From a sustainability perspective, this is very welcome, however businesses say they want both green energy and energy growth, not one or the other.
"With this in mind, the rapid delivery of major green energy projects in Ireland will be key as businesses look to secure the energy needed to power their next stages of growth.”
The research also found more than 69 per cent of businesses are planning to increase their focus on electrification, emissions reduction and energy cost management in the next three years.
Sustainability remains a key strategic priority, but not at the expense of growth and businesses increasingly expect tailored solutions that support both.
While almost all companies (96 per cent) say they are willing to pay a premium for renewable energy access and faster connections, they want customised solutions that fit specific needs.
The push by businesses for control over their energy future is driving investments in on-site power generation, battery storage and energy management systems, with over 60 per cent planning to expand these efforts in the next three years.
As energy needs are becoming increasingly more complex, businesses are looking to engage a growing range of energy providers – including suppliers, renewable manufacturers, installers and demand side management services – to support them on their energy journey.
The authors of the report suggest this presents an opportunity for providers across the energy ecosystem but warns as demand rises and expectations shift, they must move fast to transform the energy experience.
"Technology is key to meeting rising business expectations, as all surveyed companies want energy providers to offer advanced digital tools, with over two-thirds expecting AI to help analyse energy use and drive innovation," EY said.
The report also found a growing number of Irish businesses (42 per cent) say they want their energy providers to act as not just as suppliers but instead as energy advocates who can support an organisation’s awareness and adoption of clean energy solutions, while 80 per cent expect their energy provider to offer support in implementing energy initiatives.
Over three quarters of respondents increasingly value their energy providers’ customer service expertise but this does not guarantee loyalty.
EY said the energy ecosystem is becoming both crowded and complex, as businesses look across a range of providers, suppliers and third parties for intended energy product and service investments.
Richard Hepworth, customer transformation leader at EY Ireland, said: “There is clear opportunity for energy providers to reshape themselves and redefine the business energy experience to meet customers’ higher expectations and greater needs.
"We have seen positive innovation in recent years with flexible products, Corporate Power Purchase Agreements and energy solutions bundling.
"In an increasingly crowded and complex market, the providers that succeed will be those that offer the right mix of services, expertise, insight and collaboration to help businesses not only unlock new growth, but help shape a more resilient, sustainable, and prosperous energy future.”
(Pic: Getty Images)
