The Cost of Inaction

Why action is needed

Ireland remains exposed. Gas will continue to play a vital role, yet no equivalent resilience has replaced retiring oil, peat and coal infrastructure. Without indigenous storage, Ireland remains vulnerable and out of step with EU best practice. Kestrel is a necessity, and the cost of inaction is real and nationally consequential.

Exposure Without Infrastructure

Ireland’s energy system has rising demand, no gas storage and declining legacy backup. With gas still central to heat and power, this leaves the country structurally exposed to disruption and volatility.

Ireland has no indigenous gas storage, compared with six days in the UK and around 90 across the EU.

Around 80% of natural gas is imported via two UK interconnectors, a dependency set to grow as indigenous supply declines.

No equivalent storage has replaced retiring oil, peat and coal assets.

Why it matters?

Ireland has removed legacy protections without replacing the resilience they provided.

High-Risk, High-Cost Scenarios

Government’s own modelling confirms that the cost of not developing storage is measured not in millions, but tens of billions, making inaction the highest-cost option.

CEPA estimates a full disruption at Moffat could cost the Irish economy €4.6 billion per month. FSRU alone cannot fully mitigate this scenario; geological storage provides the required duration and redundancy.
Energy shocks, like those of 2022 and, again, in 2026, disproportionately affect small, import-dependent markets, and price surges flow directly to consumers and businesses

Why it matters?

Energy security isn’t theoretical; it’s financial. When the system breaks, the economy pays.

Lost Strategic Sovereignty

Ireland can deliver long-duration storage using proven geology, extensive operational data and established infrastructure. Delay would deepen reliance on external systems and reduce national control.

Four decades of Kinsale data support Ballycotton’s suitability for strategic storage.
Without action, Ireland will remain among the least prepared in the EU, increasingly reliant on external capacity and exposed to global volatility.

Why it matters?

Strategic sovereignty means having energy available at home when external supply and renewable output are constrained.