Rural Ireland must not be left behind in Government energy supports
Liquid Gas Ireland warns that ongoing omission of liquid gas from decarbonisation policy ignores tens of thousands of homes and businesses nationwide
Liquid Gas Ireland (LGI) has warned that the continued omission of liquid gas from decarbonisation policy risks leaving tens of thousands of rural homes and businesses without viable support options.
LGI today (12.05.2026) urged the Government to ensure rural and off gas grid households are fully included in forthcoming energy affordability and retrofit measures, cautioning that current proposals risk widening inequality in the energy transition.
The warning comes as changes to the Renewable Heat Obligation are expected following concerns from the European Commission that the proposed multiplier for indigenous biomethane breached EU internal market rules. While the National Biomethane Strategy commits to producing up to 5.7 TWh of biomethane by 2030, LGI cautioned that mandating demand without adequately supporting supply risks undermining that ambition.
At the same time, the Government is developing new energy affordability measures and expanded retrofit supports. However, LGI said that without a technology neutral approach, rural communities could again be overlooked. Many households still rely on higher carbon fuels such as oil, peat and coal, and the energy crisis highlighted their exposure to price volatility, supply disruption and limited choice.
Research by the ESRI and SEAI shows Ireland is off track on residential heating targets, with retrofit and heat pump uptake constrained by cost, disruption and suitability. Up to 22% of homes are not suitable for efficient heat pump use, reinforcing the need for additional solutions.
LGI said liquid gas and renewable liquid gas can deliver immediate emissions reductions as drop in fuels compatible with existing heating systems, particularly where electrification is not currently viable. Supporting these fuels would offer a practical and cost-effective pathway for rural homes and businesses.
LGI has called for equal access to grants and incentives for rural energy users, formal recognition of renewable liquid gas within SEAI schemes and sustained support for domestic renewable fuel production through clear long term policy signals.
Alan Farrell, Senior Director of Government Affairs and Policy at LGI, said:
“For many rural homes and businesses, electrification is not a realistic short term option. Liquid Gas & Renewable liquid gas can cut emissions now while improving affordability and energy security. If these solutions are excluded, rural communities risk being left behind.
“Government policy must reflect the realities facing off gas grid households and ensure that supply of renewable fuels is properly supported alongside demand.
“If Ireland fails to build sufficient domestic biofuel production, we risk creating a system where demand is mandated but supply is not. Increasing funding alone will not address this strategic gap. Government policy must recognise the realities facing rural and off gas grid energy users and act now to support the development of sustainable alternatives.”
