The South West has a diverse portfolio of energy assets and infrastructure. Cork Harbour forms the industrial and commercial heart of the region while Co. Kerry is one of the country’s most important locations for renewable energy generation.
Cork supplies over 25% of national energy demand and is home to around 20% of Ireland’s installed electricity generation capacity, centred on the Whitegate oil refinery and the Aghada and Whitegate gas-fired power stations.
Cork county also has c.12% of Ireland’s installed wind generation capacity and over fifty solar farms have been granted planning in recent years. Co. Kerry accounts for c.13% of national wind generation and in May 2025 provided 82GWh of zero carbon renewable electricity, the most of any county in Ireland.
Tarbert power station has been an integral part of the grid and generation system for sixty years and has transitioned from heavy fuel oil to modern generators running on renewable fuel. The Tarbert site, along with others in Co. Kerry, is also being developed for large-scale battery electricity storage.
The 900MW Tonn Nua wind farm located off the south coast will connect to the national grid in East Cork and Great Island in Waterford. Port of Cork is expanding deepwater capacity in Ringaskiddy for offshore wind logistics and the Ireland Strategic Investment Fund has committed funding for new port infrastructure for offshore wind assembly and storage.
The Celtic Interconnector will connect to the Irish grid in East Cork and is scheduled to come online in early 2028. This will be Ireland’s first interconnector to mainland Europe and will increase Ireland’s security of electricity supply.
In the gas sector, ESB and CarbonX are developing plans to repurpose the depleted Kinsale gas field for hydrogen storage. A group of energy companies have established the Celtic Hydrogen Cluster, targeting hard-to-decarbonise sectors through offshore wind power.
Lir, the National Ocean Test Facility designed for laboratory testing of offshore wind, wave and tidal energy devices, is also located in Cork. Munster Technological University, with campuses in Tralee and Cork, provides the skills pipeline from sustainable energy and offshore operations to HV engineering and energy storage.
In the South West region the level of electricity generation is greater than the capacity of the grid, resulting in renewable generation going to waste. This is known as dispatch down.
Of the 39 transmission grid projects planned in the South West the majority are in Co. Cork. EirGrid maintains that despite these investments dispatch down in the South West is expected to increase.
Cork is part of the EU’s TEN-T road network and is served by an international airport. EU regulations covering aviation, maritime and road transport are driving new demands for clean fuel infrastructure across the region.
"Unlocking the vast potential of the South West hinges on integrating a diverse array of technologies.
Success will depend on harnessing offshore and onshore wind, solar power, storage solutions, advanced data centres, more interconnection capabilities, and build out of additional electricity grid infrastructure as well as smarter utilisation of the existing grid, alongside more efficient demand side management for industrial energy use around Cork.
No single technology can accomplish this ambitious vision alone. What’s essential is a unified, strategic approach, one that combines both the expansion of grid infrastructure and the intelligent management of demand and generation.
The South West is ideally positioned to take the lead in this transformation. If we deliver effectively, the rewards will include enhanced energy security, sustained economic growth, electricity price stability, less volatility from imported fossil fuels etc and a pioneering model for sustainable electricity that could reshape Ireland’s energy landscape."
Kevin O’Donovan, SVP European Wind & Solar, Statkraft
With electrical interconnection, gas storage and fuel processing all converging in the region, the South West is well placed to lead Ireland’s renewable energy expansion - offshore wind, large-scale storage, future fuels and a strong pipeline of onshore renewables.
However, action must be taken now to enable the South West to deliver a 2040 vision.
At KPMG we’re all about helping make cities and regions better places. Our experience and expertise in Irish cities and regions as well as in urban areas worldwide, makes us uniquely placed to help decision - makers, policy stakeholders, infrastructure leaders and private companies who want to move quickly to make our cities and regions better places.
If you would like to find out more about how we can help you achieve your ambitions for the South West or further afield - please contact James Delahunt. We'd be delighted to hear from you.
