Ireland’s Infrastructure Outlook 2026

Ireland enters 2026 with one of the most ambitious infrastructure delivery agendas in Europe. Major investments across transport, energy, water, housing and health are moving through critical decision gates, with several of the state’s flagship projects transitioning from planning into procurement and construction.

These programmes are central to achieving compact growth, strengthening regional connectivity, enabling renewable integration, improving security of supply, and supporting long‑term economic competitiveness.

At the same time, the delivery landscape remains challenging. Planning timelines continue to be lengthy, market capacity is constrained, inflation and cost uncertainty persist, and enabling infrastructure, particularly grid and water, is increasingly determining the pace at which national priorities can progress.

Population growth, rising demand across energy and water networks, and continued urban pressure heighten the urgency for delivery.

With so many high-profile infrastructure projects set to achieve key project milestones in 2026 there is much scrutiny on whether challenges can be overcome and if the required increase in infrastructure capacity delivery can be achieved.

The public’s interest has sharpened in relation to a need to ramp up delivery of Ireland’s critical infrastructure driving a broader focus on progress and outcomes. In the context of such heightened focus, it is timely to consider what we can expect in 2026. Infrastructure planning and delivery were in the spotlight throughout 2025, and momentum is now shifting.

James Delahunt

Partner, Corporate Finance, Head of Energy & Natural Resources

KPMG in Ireland

mail
call

Cross‑cutting delivery challenges in 2026

Despite reforms, project timelines remain lengthy. Major applications, including nationally significant transport, energy, water and housing projects, will test whether the restructured regime can deliver greater certainty and predictability.

Labour shortages, specialist skills gaps and ongoing cost volatility continue to place pressure on viability. Complex programmes increasingly require robust procurement strategies, earlier supply‑chain engagement and more sophisticated commercial risk allocation.

Electricity network capacity is becoming a defining factor in the timing and sequencing of national priorities. Grid infrastructure is playing an ever-increasing role in Ireland’s overall energy system.

It supports multiple sectors including housing, industry and transport, where grid readiness is essential to advancing key electrification projects such as Dart+ and Cork Area Commuter Rail. These dynamics are reflective of wider sector coupling effects and underscore the vital role of the grid in supporting economic growth, energy system decarbonisation and energy security.

Growing demand from large energy users (LEUs), accelerated electrification, and continued deployment of variable renewables mean that grid reinforcements, digitalisation and flexible capacity must progress in lockstep with wider infrastructure delivery.

The Commission for Regulation of Utilities (CRU) recent decision on Large Energy User connections policy highlights the continued importance of the grid in supporting the growth of Ireland’s digital sector.

Ireland is entering a key year for delivery in 2026. With PR6 investment underway and the Celtic Interconnector nearing completion, we now have a real opportunity to build a cleaner, more flexible and more secure energy system — one that accelerates every other national priority.

James Delahunt

Partner, Corporate Finance, Head of Energy & Natural Resources

Across transport, housing and water, inflation, financing pressures and competing departmental priorities continue to shape delivery pace. Strengthened commercial capability and clear prioritisation frameworks are increasingly important.

The challenges outlined above are well-documented, but it is important to remain aware of additional potential impediments to infrastructure delivery such as government approval timelines.

Whilst 2025 marked a year in which infrastructure moved firmly into public discourse, 2026 is set to be a pivotal, exciting year for project delivery. Below is a focused view on five nationally significant projects that illustrate the scale, complexity and strategic importance of Ireland’s capital programme, alongside the policy and delivery levers required to accelerate progress.

2026 is set to be a pivotal, defining year for project delivery. With clearer prioritisation and the implementation of Accelerating Infrastructure Taskforce reforms, we can deliver infrastructure faster, more confidently and with greater long‑term value for the country.

Paul O'Neill

Co-Head of Infrastructure

Major projects to watch in 2026

Sector overview

The year ahead is set to be pivotal for the continuing development of the electricity system with plans for significant investments in the transmission and distribution networks including project development works for offshore transmission networks.

It is the first year in the price review six (PR6) period with the CRU approving combined baseline capex allowances for ESB Networks and EirGrid exceeding €1,600m across transmission, distribution and offshore grids including non-network capex. Investments in this year will support development and delivery of a range of projects required to support Ireland’s growing demand, to connect more renewables, increase system flexibility and to enhance grid resilience.

29 priority projects have been identified in the transmission programme to be delivered in PR6 of which eight will begin construction in 2026 with one further project reaching final energisation.

The government’s ongoing support for the reinforcement of Ireland’s electricity system is evidenced by the allocation of €3.5b equity funding to ESB Networks and EirGrid combined as detailed in the National Development Plan.

The Celtic Interconnector is a critical project of strategic importance for the state, which will progress through the construction phase in 2026 with energisation expected in 2028.

Once operational, the 700 MW link to France will enhance security of supply, enable deeper renewable penetration and provide access to France’s balancing market.

Delivery of PR6 and Celtic aligns with Government priorities on energy security, renewable integration and the 2030 targets. Progress will test the impact of planning reform and grid‑first sequencing approaches highlighted in the Accelerating Infrastructure Report.

Ireland’s electricity grid is entering an exciting phase of expansion and investment. With significant regulatory support, as evidenced by PR6, there is an opportunity in 2026 to ramp up grid development and delivery activities, and to make meaningful progress towards achieving Ireland’s key policy goals

Ciaran Rabbitt

Director

MetroLink remains Ireland’s most significant public transport megaproject. With the Railway Order granted in late 2025 providing full planning permission, the project has now progressed beyond statutory approvals, and 2026-27 will see the programme advance through critical procurement milestones (the procurement phase has already begun for the major civils infrastructure M400 contracts).

Once delivered, MetroLink will provide high‑capacity, fully segregated rail between Swords and Charlemont, linking key destinations including Dublin Airport and enabling modal shift, compact growth and sustainable mobility across the Greater Dublin Area.

MetroLink exemplifies the need for major‑project governance, strengthened sponsorship, and procurement reform, all core recommendations of the Accelerating Infrastructure Taskforce. It also reflects commitments in the Transport Sectoral Plan to expand mass transit and reduce transport emissions through enhanced public transport capacity.

Building on this direction of travel, progress will continue throughout 2026 on BusConnects programmes in Dublin and Cork, the Dart+ expansion programme, Cork Commuter Rail upgrades, and Luas extensions such as Finglas. Together, these programmes form a coordinated pipeline of high-impact transport infrastructure investments.

Ireland’s major programmes can achieve exceptional results in 2026. With strong governance and real‑time programme insight, we can deliver megaprojects that set a new benchmark for efficiency, quality and public confidence.

Matthew King

Managing Director, Co-Head of Infrastructure

2026 is expected to mark substantive progress in Ireland’s most high‑profile healthcare projects.

Construction of the National Children’s Hospital is anticipated to complete in 2026 and be handed over to the HSE and Children’s Health Ireland for the Operational Commissioning phase. As Ireland’s flagship paediatric facility, its completion will modernise acute paediatric care and consolidate services on a single campus.

The National Maternity Hospital, currently at tender stage, will continue to advance through its delivery programme throughout 2026 as part of the national maternity services modernisation agenda.

These projects highlight the importance of robust megaproject governance, enhanced commercial capability in the public sector, and the use of real‑time programme controls, all priority areas in the Accelerating Infrastructure Report and the Health Sectoral Capital Plan.

The Water Supply Project – Eastern and Midlands Region, one of the State’s largest water investments, is progressing towards a 2028 construction start. The project will deliver a new strategic water source and a 170 km pipeline to provide long‑term resilience for Dublin and the wider region. 2026 will be a critical year for planning, procurement preparation and early enabling works.

Alongside this, Uisce Éireann’s RC4 investment programme is reinforcing the wider system by upgrading water and wastewater infrastructure at scale, including major national projects such as the Greater Dublin Drainage scheme, which will significantly expand treatment capacity for the capital and its hinterland.

As identified in multiple departmental plans, water infrastructure is becoming a binding constraint on growth.

The WSP directly reflects AIT recommendations on long‑term, multi‑annual planning and on sequencing enabling works to create system resilience. It also aligns with Housing for All and the Water Sectoral Plan commitments to secure sustainable water supply for high‑growth regions.

Predictable, proportionate planning is now fundamental to Ireland’s infrastructure ambitions. When evidence, community engagement and clear guidance align, nationally significant projects move at the pace the country needs.

Stephen Purcell

Director

Housing delivery continues to scale, with 30,168 social homes completed in 2024 and c.34,380 estimated for 2025 (based on Q3 data and typical Q4 patterns). The Government’s 2026 target is 50,500 homes, supported by sustained capital funding and a pipeline of large‑scale developments. 2026 delivery will rely on coordinated planning, enabling infrastructure and a balanced mix of AHB, local authority and cost‑rental schemes.

Achieving the 2026 target will require continued progress on planning reform, land activation, and alignment between housing, transport and utilities, echoing AIT’s call for stronger cross‑government project sequencing to unlock capacity at scale.

Opportunities for acceleration in 2026

Prioritise procurement reform and early contractor involvement

Procurement models that enable phased risk transfer, two‑stage competition and early market input can, in the right circumstances, improve cost certainty, reduce programme risk and align delivery partners around shared outcomes.
Evolve planning pathways to enable timely approval of major projects

There is an opportunity to strengthen planning processes so that complex, nationally significant projects progress at pace. Implementing the Accelerating Infrastructure Taskforce’s recommendations, clearer guidance, proportionate requirements and enhanced capacity, would reduce ambiguity and support more predictable timelines. Developing streamlined pathways for projects of overriding strategic importance, where appropriate, could further help avoid delays and ensure critical programmes move efficiently through the system.
Strengthen delivery governance for megaprojects

Large, complex programmes benefit from empowered sponsors, supported by clear governance, disciplined change control, transparent reporting and consistent decision‑making. Strengthening governance structures will help create the conditions in which empowered teams can maintain delivery momentum.
Optimise sequencing through a coordinated, cross‑sector approach

Acceleration increasingly depends on the ability to align infrastructure programmes across energy, water, transport and housing. Coordinated sequencing of enabling works, shared dependencies and land‑use implications supported by community buy‑in and sustained political support, can unlock more efficient delivery and reduce upstream delays.
Leverage climate action to accelerate investment

Climate objectives provide a basis for faster approvals, strengthened long‑term planning and multi‑annual investment frameworks. Using national climate commitments as an organising principle can streamline decision‑making, support predictable pipelines and enable earlier mobilisation across priority programmes.

When projects place people, climate resilience and long term community benefit at their core, the value extends far beyond physical infrastructure.

Abhilasha Mohanram

Senior Consultant

Looking ahead

2026 represents a decisive moment for Ireland’s infrastructure programme.

Progress on strategic projects supported by coordinated governance, early market engagement and disciplined delivery management will strongly shape the country’s competitiveness, resilience and sustainability.

With clearer system‑level planning, stronger political alignment and greater public confidence, Ireland can accelerate at the scale required to meet its long‑term ambitions.

Let’s build what's next together

Whether you're planning a major infrastructure investment, navigating regulatory complexity, or seeking to future-proof your assets, our team is ready to help.

Get in touch today to discover how our end-to-end advisory services can bring clarity, confidence, and value to your next project.

How KPMG can help

KPMG Ireland supports public and private sector clients across the full infrastructure lifecycle from strategy and funding to procurement, governance, and delivery.

With deep sector expertise and global insight, we help turn policy into tangible progress and enable organisations to deliver impactful, future‑ready projects.

If you’re seeking experienced guidance on complex infrastructure challenges or opportunities, our team is here to help. Connect with us today.