Energia, a Dublin based energy company, parented by the Viridian Group, has recently announced that it will be investing €3 billion in Irish renewable energy over the next five years. These figures show promise of the creation of 200 more jobs directly within the organization. Additionally, there is likely to be a creation of between 3,000 and 5,000 construction jobs, given the sheer amount of huge projects that will soon be under way.
Many of the promised projects include a focus on the creation of renewable energy. This goes hand in hand with the Irish government’s plans to increase the country’s consumption of renewable energy by making it the most accessible and cost efficient type of electricity generator. The government hopes to increase renewable energy in the electricity market from 30 to 70pc by the year 2020, according to the Climate Action Plan.
The creation of onshore and offshore wind farms, solar power, hydrogen fuel generation, bio-energy facilities and the smart grid are all huge factors steps towards the fulfillment of this governmental initiative.
What is most interesting about this investment is the timing. The looming uncertainty of Brexit seems to be a deciding factor for many businesses in regards to where, when and how they invest their capital.
CEO of Energia, Ian Thom touched on this aspect saying: “Our decision to invest over €3 billion in renewable technology and energy infrastructure in the coming years is a clear signal of our intent to build on our continuous commitment to Irish communities, the economy and the sustainability of Ireland’s energy supply while contributing decisively to decarbonisation and the protection of our domestic and global environment.”
The company has currently invest around €1 billion into the country of Ireland, and seems to not be phased by the possible changes that Brexit could cause.
Perhaps a reason why this business is less worried about the effects of Brexit on their investment is the fact that energy has a stable demand curve. Despite what is happening in the economy, consumers still put value on electricity; this keeps the market steady despite many economic downturns.
Additionally, the quality for the price of this renewable energy has in the past had positive reviews. Energia is a popular brand, especially with a population that is becoming progressively conscious of their environmental impact and their bank account. According to their website statistics, consumers can save on average €343 a year, with an average annual bill tofaling €838.
It is not likely that this price would skyrocket after Brexit occurs, given that natural energy does require international trade. This is a huge benefit for the company, and its investments are likely to benefit both the company and the consumers within the daunting months to come.