The Daily Star Ireland
The National Development Plan (NDP) is the Irish Government’s long-term strategy for investing in infrastructure essential to the country’s growth and wellbeing. First launched in 1988, it has been revised multiple times to address emerging national needs. The current iteration extends through 2040, outlining major investments in critical services such as transport, electricity, water, and housing. The government is now reviewing its spending priorities for 2026 to 2030 and is expected to unveil a significant funding boost early next week.
This upcoming revision is seen as essential for addressing Ireland’s persistent housing crisis. Chronic infrastructure deficiencies—especially in water, sewage, and electricity—are seen as key barriers to increasing the supply of new homes.
Infrastructure Gaps Are Stalling Housing Development
A functioning home isn’t just walls and a roof—it requires access to clean water, wastewater treatment, and power. Unfortunately, Ireland’s infrastructure has not kept pace with its housing demands, creating serious bottlenecks in development.
A prime example is the Greater Dublin Drainage project. Without this crucial sewage treatment facility, local authorities in Dublin may be unable to grant planning permission for new residential developments within the next three years. Despite its urgent need, the project has been delayed for seven years in the planning process, partially due to objections, including one raised by a sea swimmer. While An Coimisiún Pleanála finally gave the project the green light last week, there remains a window for further legal challenges that could delay it further. Meanwhile, the Ringsend treatment plant—the only one serving much of Dublin—is operating at or above capacity, raising environmental concerns about pollution in Dublin Bay if new homes proceed without updated infrastructure.
Water Supply: A Fragile System Nearing Its Limit
Water availability is another pressing concern. The greater Dublin region, home to about 1.7 million people, relies heavily on the River Liffey for 85% of its supply. Daily water production is capped at 620 million litres, but demand frequently exceeds that, reaching over 640 million litres. To cover the excess, authorities draw from reserve treated water—an unsustainable practice in the long term.
To secure future supply, a proposal to divert 2% of water from the River Shannon has been in discussion since the 1990s. The government has finally agreed to move forward, with Uisce Éireann (formerly Irish Water) aiming to submit a planning application by year’s end. However, opposition is expected, and the complex planning process could delay implementation once again.
Electricity Demand Growing Rapidly
Electricity connections represent a third major obstacle to infrastructure and housing expansion. Ireland’s population is projected to grow by one million by 2040, and new homes are increasingly reliant on electric systems for heating, transport, and daily living. Modern homes consume roughly twice the power of those built two decades ago.
By the end of this decade, the energy grid will need to accommodate millions of devices—from electric vehicles and heat pumps to smart meters and energy storage systems. ESB Networks, the national electricity provider, has emphasized the urgent need to expand grid capacity to meet rising demand. The issue is compounded by the rapidly growing electricity consumption of data centres, which already account for more than 20% of national electricity use.
Funding the Future: A €97 Billion Commitment
To address these intertwined infrastructure issues, the upcoming NDP review will allocate an extra €20 billion in funding from special sources, including proceeds from the sale of AIB shares and back-tax collected from Apple. This brings the total infrastructure investment planned through 2030 to €97 billion.
The expanded plan will prioritize essential sectors like housing, electricity, water, and transport. These areas are seen not only as enablers of growth but as safeguards against the social and economic consequences of underinvestment.
Ireland’s historical underperformance in infrastructure development has not gone unnoticed. A recent International Monetary Fund (IMF) report noted that Ireland trails its economic peers by 32% in infrastructure spending—a gap largely attributed to cutbacks following the 2008 financial crisis.
A Tool for Public Transparency and Climate Resilience
To help citizens stay informed, the government has launched an interactive map showing where projects are taking place and their expected completion timelines. This public tool offers a transparent look into how national investments will impact local communities.
Climate change is also playing a growing role in shaping infrastructure needs. ESB Networks has flagged risks such as increased vegetation growth, invasive species like woodpeckers, and extreme weather as threats to its operations—necessitating more resilient grid systems. Similarly, Uisce Éireann has highlighted how droughts and intense rainfall events will affect both water availability and quality. In flood-prone regions, additional funding will be directed toward protective infrastructure to mitigate future risks.
Conclusion: Planning for a Sustainable, Connected Ireland
Ireland’s revised National Development Plan marks a pivotal moment in national infrastructure strategy. As housing needs grow and climate pressures intensify, the country must rapidly scale up its investment in essential systems. With €97 billion now earmarked for the next five years, the government aims not just to build for today—but to prepare for a more resilient, sustainable future.
