Ireland needs to progress the Shannon LNG terminal, redesign its biomethane support scheme and adopt a more technology-neutral approach to renewable energy, if it is to improve its long-term competitiveness.

These were among the recommendations in the latest Ireland’s Competitiveness Challenge report, published by the National Competitiveness and Productivity Council (NCPC).

The NCPC is the Government’s independent advisory body on competitiveness and productivity.

ADVERTISEMENT

The report outlines measures aimed at strengthening economic resilience, supporting investment and improving productivity.

AD scheme redesign

In light of the failure of the multiplier mechanism in the forthcoming Renewable Heat Obligation, a broad heat scheme aimed at developing the anaerobic digestion (AD) sector, the NCPC recommended introducing a Contracts for Difference (CfD) scheme to provide greater certainty for investment in AD development.

A CfD scheme, which is common in many parts of Europe, has repeatedly been called for by the AD industry.

However, it has been explicitly ruled out by the Government, which has instead opted for a blanket policy that will affect all users of energy for heat generation.

The council also said the development of strategic LNG infrastructure at Ballylongford should be progressed to enhance security of supply.

Planning

The council recommends rapidly reforming planning and permitting processes to meet the timelines required under the EU Renewable Energy Directive III and preparing for the forthcoming Grids Package.

This includes the timely delivery of Phase 1 offshore wind projects and the North-South Interconnector.

The report also recommends reducing the cost of doing business, reforming planning and regulatory processes, strengthening skills development, and accelerating the adoption of digital technologies and artificial intelligence to improve productivity.