Kestrel Energy Storage is a proposed national-scale energy storage project being developed by ESB, Bord Gáis Energy and dCarbonX, which will see the repurposing of the decommissioned Ballycotton gas field into a large-scale underground storage facility. In the near term, it would support Ireland’s energy security through strategic natural gas storage. Over time, the same infrastructure is designed to support biomethane or green hydrogen/biomethane storage, helping to create a more resilient, secure and future-ready energy system for Ireland.
Kestrel Energy Storage brings together ESB, Bord Gáis Energy and dCarbonX. The partners combine experience across electricity generation, gas supply, underground storage, infrastructure development and long-term energy planning. ESB is a leading Irish utility with a deep history going back to the founding of the Irish State. Bord Gáis Energy is a major Irish energy provider and part of Centrica. DCarbonX‘s major shareholder is SNAM, a leading European gas infrastructure and storage operator. Together, the partners are seeking to deliver strategic energy storage using proven technology, experienced operators and private investment.
Ireland currently has no indigenous gas storage capacity, compared with an EU average of approximately 90 days. Most of Ireland’s gas supply is imported via the UK through two interconnectors, leaving the country exposed to external supply disruption, price volatility and energy security risks. While electricity demand is growing and renewable generation is increasing, older forms of stored energy from coal, peat and oil are being retired: in this context long-duration storage is needed to provide a domestic buffer during supply shocks, prolonged disruption or periods when renewable generation is lower.
Kestrel Energy Storage would restore a layer of strategic storage that Ireland currently lacks. By storing energy underground at scale, it would help Ireland manage supply disruption, price volatility and wider system stress. Updated geological and operational analysis indicates that Kestrel Energy Storage could provide at least 90 days of strategic reserve, based on average daily consumption. This would strengthen Ireland’s ability to withstand shocks and support a more reliable energy system as demand grows.
Kestrel Energy Storage is complementary to the Government’s FSRU. The FSRU would provide import flexibility and greater diversity of supply, including approximately seven days’ worth of gas supply, while Kestrel Energy Storage would provide security of supply through indigenous long-duration storage. These are different but mutually reinforcing roles. The FSRU helps Ireland access additional sources of gas supply; Kestrel Energy Storage would allow energy to be stored domestically for use during prolonged disruption or system stress. Updated geological and operational analysis indicates that Kestrel Energy Storage could provide at least 90 days of strategic reserve, based on average daily consumption.
Kestrel Energy Storage is seeking the policy certainty needed to progress strategic energy storage in Ireland. This includes clarity on the project’s Maritime Area Consent application; Government support in principle for large-scale geological storage of natural gas, biomethane and hydrogen; and a Department-led working group to develop the required legal, regulatory and market framework. Kestrel Energy Storage is not asking Government to build or own the project. The ask is for a clear framework that enables private investment in national resilience.
The full project cost will depend on final design, regulation and development pathway. Kestrel Energy Storage would be developed by the consortium. Government’s role would be to provide long-term policy and regulatory certainty, including an appropriate revenue framework, rather than direct capital funding. The State would not be expected to build or own the asset.
The consortium would carry upfront development and construction costs, so there is no upfront cost to consumers, while any future revenue or pricing model would be subject to the Commission for Regulation of Utilities framework. Any potential consumer cost would depend on the regulatory framework implemented for energy storage. The process is intended to ensure transparency, protect consumers and avoid undue downside risk for the State. The objective is to deliver a national resilience asset through private investment, with any consumer implications assessed and regulated in the public interest.
Kestrel Energy Storage is designed to support Ireland through the energy transition. In the near term, it will provide natural gas storage to strengthen security of supply while the energy system continues to decarbonise. Over time, the infrastructure is designed to evolve to support biomethane or green hydrogen storage. A renewable-led system will still need long-duration energy storage when demand is high and wind or solar output is lower. You cannot build a renewable future without system stability.
Without indigenous long-duration energy storage, Ireland remains exposed to supply disruption, global energy shocks and price volatility. Interconnection and an FSRU help diversify supply, but they do not remove the need for domestic storage at scale. As demand grows and the system relies more on variable renewable generation, resilience becomes more important. Inaction would mean continued reliance on foreign systems, reduced national control during stress events and higher exposure for households, businesses and the wider economy.