Planning news
Majority of large housing developments still not starting construction
A recent report has highlighted a major challenge in Ireland’s housing sector: many large housing developments that receive planning permission have not actually started construction. According to the Annual Construction Sector Report 2026 by construction consultants Mitchell McDermott, only 30% of large-scale residential developments (LRDs) that gained planning approval between 2022 and 2025 have begun building. Large-scale residential developments refer to projects that include 100 or more homes, apartments, or student accommodation units. These developments are particularly important because they account for 60–70% of all planning permissions in Ireland and are therefore essential to increasing housing supply. However, despite their importance, many approved projects are still stalled and have not progressed to construction.
The report found that planning applications were submitted for around 63,000 housing units during the four-year period. Of these, about 15,000 units failed to secure planning permission, while planning permission for another 4,000 units was overturned through judicial review. This left roughly 44,000 units with valid planning permission. After removing projects that only recently received approval, the study found that 18,500 units had begun construction, while approximately 14,000 units with planning permission had not yet started.
Industry experts say this situation is a serious concern given Ireland’s ongoing housing shortage. According to report co-author Paul Mitchell, the fact that many developments with full planning approval remain stalled is worrying, particularly during a housing crisis. He suggested that these approved projects should be prioritised by the Government’s Housing Activation Office, which could help unlock stalled developments using available supports and funding.
The report also examined what level of housing delivery would be needed to meet the Government’s target of 300,000 new homes by 2030. It estimates that around 39,000 homes would need to be delivered this year, with construction levels increasing significantly over the following years to meet demand.
Overall, the findings show that planning permission alone does not guarantee that housing will be built. Addressing barriers such as financing, infrastructure, and construction capacity will be essential if Ireland is to significantly increase housing supply and meet national housing targets.
Government to continue plans for rotunda critical care wing
The Irish Government has confirmed that it intends to move forward with plans for a new critical care wing at the Rotunda Hospital in Dublin, despite a recent planning setback. The proposed development is a major healthcare project designed to improve facilities for critically ill mothers and newborn babies, but it has recently faced delays after being refused planning permission.
The planned extension, estimated to cost around €100 million, would include a four-storey building providing additional hospital space and modern medical facilities. The project was expected to deliver around 80 additional hospital bedrooms, including a labour ward, neonatal intensive care unit, special care baby unit, and new operating theatre facilities. These upgrades aim to significantly improve the hospital’s ability to care for women and infants who require specialist treatment.
Although the development was initially approved by Dublin City Council, the decision was later overturned by An Coimisiún Pleanála following appeals from conservation groups and a local resident. The planning authority concluded that the proposed building could negatively impact the historic character of Parnell Square, which is an important Georgian heritage area in Dublin.
Despite this setback, the Government has stated that it is determined to ensure the project moves forward. Health Minister Jennifer Carroll MacNeill has confirmed that a new planning application will be prepared in order to deliver the critical care facilities that the hospital urgently needs. The revised proposal is expected to include expanded critical care services for both women and babies, as well as an enhanced Sexual Assault Treatment Unit.
The Rotunda is one of the busiest maternity hospitals in Ireland, delivering thousands of babies each year. Healthcare professionals and political representatives have emphasised the importance of improving its facilities to ensure safe and modern care for patients. Many have argued that delays to the project could impact the quality of maternity care available to women and newborns.
Overall, the Government’s commitment to resubmitting plans highlights the importance of investing in maternity healthcare infrastructure. While planning and heritage concerns must be addressed, the project remains a key priority for improving medical services for women and families in Dublin.
Renewables news
Supreme court clarifies climate obligations in planning decisions
A recent decision by the Irish Supreme Court has provided important clarification on how climate obligations must be considered in planning decisions. The ruling came from a legal case involving Coolglass Wind Farm Limited, which challenged a decision by An Coimisiún Pleanála to refuse planning permission for a wind farm in County Laois.
The original refusal was based on the fact that the proposed wind farm would have contravened the Laois County Development Plan, which did not permit wind energy developments in that specific area. The developer challenged the refusal in the High Court, arguing that the planning authority failed to properly consider Ireland’s climate obligations under the Climate Action and Low Carbon Development Act 2015, as amended in 2021.
The High Court initially ruled in favour of the developer and quashed the decision of the planning authority. However, the case was later appealed to the Supreme Court. While the Supreme Court ultimately dismissed the appeal and agreed that the decision should be reconsidered, it clarified that the High Court’s interpretation of climate obligations had been too broad.
The Supreme Court explained that public bodies, including planning authorities, must perform their functions in a way that is consistent with national climate objectives, but only “in so far as practicable.” This means that climate considerations must be taken into account when making planning decisions, but they do not automatically override other planning factors such as development plans, environmental impacts, or local planning policies.
The Court also highlighted that climate obligations should not be treated as a strict rule that always favours renewable or climate-positive projects. Instead, decision-makers must balance climate objectives with the broader planning framework. However, they must clearly demonstrate that they have meaningfully considered climate policy when making their decision.
Overall, the ruling provides clearer guidance for planning authorities and developers. It confirms that climate considerations are now a key part of planning decisions in Ireland, but they must be applied within the limits of existing planning laws. The judgment is expected to influence future planning decisions, particularly for projects related to renewable energy and climate action.
Ireland’s wind power surges in January, cutting costs despite record demand
Ireland’s wind energy sector delivered a strong performance in January, highlighting the important role renewable energy plays in powering the country while helping to reduce electricity costs. According to Wind Energy Ireland’s latest monthly report, wind farms generated approximately 1,400 GWh of electricity during the month, supplying around 34% of Ireland’s total electricity demand. This represents one of the strongest January performances on record for the sector and demonstrates the growing contribution of wind power to the national energy mix.
January was also marked by particularly high electricity demand. Cold winter temperatures increased the need for heating across homes and businesses, pushing national electricity demand to a record 4,087 GWh for the month. Despite this surge in demand, wholesale electricity prices fell significantly compared to the previous year. Average wholesale prices stood at €126.95 per megawatt-hour, down from €167.51 per megawatt-hour in January 2025. This decline highlights how increased wind generation can help stabilise energy prices and reduce reliance on more expensive fossil fuel generation.
The impact of wind energy on electricity prices was particularly evident on days when wind generation was highest. On those days, the average wholesale electricity price dropped to approximately €101.84 per megawatt-hour. In contrast, when electricity generation relied more heavily on imported fossil fuels, prices rose to around €145.84 per megawatt-hour. These figures demonstrate how renewable energy sources such as wind can play a crucial role in protecting consumers and businesses from volatility in international fossil fuel markets.
The report also highlighted the regions contributing most to Ireland’s wind power output. County Offaly produced the largest amount of wind energy during the month with around 179 GWh of generation. This was followed by Kerry with 168 GWh, Cork with 155 GWh, Tyrone with 138 GWh, and Tipperary with 111 GWh. These counties continue to play a major role in supporting Ireland’s renewable energy capacity and contributing to national climate and energy targets.
While January’s figures underline the benefits of wind energy, the report also emphasises the importance of further investment in Ireland’s electricity grid. At times, available wind energy could not be fully used because the grid lacked sufficient capacity to transmit all the power being generated. Strengthening and expanding the electricity network will be essential to ensure that renewable energy can be fully utilised and to maximise the economic and environmental benefits of Ireland’s wind resources.
Overall, January’s performance demonstrates how wind energy continues to support Ireland’s transition towards a more sustainable and secure energy system. By supplying a significant share of electricity during a period of high demand and helping to lower wholesale energy prices, wind power is proving to be a key component of Ireland’s energy future. Continued investment in renewable infrastructure and grid development will ensure that these benefits can grow even further in the years ahead.
Policy and legislation
Dáil to Vote on Fast-Tracking ‘Critical’ Building Projects
The Irish Government is proposing new legislation that would allow certain building and infrastructure projects to be designated as “critical”, enabling them to move more quickly through the planning and approval process. Under the proposal, the Dáil will have the power to vote on whether specific projects should receive this designation before they are fast-tracked. The aim of the measure is to reduce delays that often slow down major developments and to ensure that key infrastructure projects can be delivered more efficiently.
The proposed legislation, known as the Critical Infrastructure Bill, would create a special pathway within the existing planning system. Projects considered essential to national development—such as transport networks, energy infrastructure, water services, and flood defence schemes—could be prioritised and moved to the front of the planning queue. Once a project is officially designated as “critical,” all relevant state bodies would be required to prioritise its assessment and work together more closely during the approval process.
Government ministers argue that this change is necessary because Ireland’s planning system can often be slow and complex, particularly for large infrastructure developments. Minister for Public Expenditure and Infrastructure Jack Chambers has stated that the new bill is designed to address “unacceptable delays” in approvals by encouraging better coordination between agencies and ensuring that priority projects receive quicker attention from decision-makers.
Supporters of the proposal believe the legislation could help accelerate the delivery of essential infrastructure needed for economic growth, housing development, and climate transition projects. Faster planning decisions could also help address long-standing backlogs in infrastructure projects and reduce the time it takes for major developments to move from planning to construction.
However, the proposal may also raise questions about planning oversight and transparency. Critics could argue that fast-tracking projects may limit opportunities for public consultation or environmental scrutiny if not carefully managed. For this reason, the requirement for the Dáil to approve the designation of “critical” projects is intended to provide democratic oversight and ensure that only a limited number of projects receive this status.
Overall, the proposed legislation represents part of a wider effort by the Government to reform Ireland’s planning and infrastructure delivery systems. If approved, it could significantly speed up the development of major projects considered essential to the country’s future growth and resilience.
Applications open for Rural Regeneration and Development Fund (RRDF)
The Government has announced a new call for applications under the Rural Regeneration and Development Fund (RRDF) to support large-scale capital projects in rural areas across Ireland. The fund, which is part of the national Project Ireland 2040 strategy, aims to revitalise rural towns and villages by investing in infrastructure, community facilities, and development projects that encourage people to live and work in rural areas.
The announcement was made by Dara Calleary, who opened applications for a Category 1 call for proposals. This category focuses on large strategic projects that already have planning permission and other approvals in place and are ready to begin construction. The fund is seeking projects with significant impact, with funding requests ranging from €500,000 to €10 million.
Since it was first introduced, the RRDF has invested more than €614 million in 273 projects across the country. These projects have included initiatives that transform town centres, create tourism attractions, and develop community hubs where people can meet, work, and access services. The government believes that this investment has already had a positive impact on rural communities and has helped stimulate local economies.
The main objective of the fund is to support projects that help rural towns and villages become more attractive places to live, work, and invest. Successful proposals must be led by a state-funded body such as a local authority, local development company, or other state agency. In addition, projects must demonstrate strong collaboration between organisations and involve community engagement in their planning and development.
According to Minister Calleary, the fund represents a major opportunity for rural areas to develop ambitious projects that can improve infrastructure and strengthen local communities. The initiative also supports wider government policies such as Our Rural Future and the Town Centre First strategy, which aim to create more sustainable and vibrant rural towns.
Applications for the current funding round are open until 28 July 2026, giving local authorities and organisations several months to develop and submit proposals for projects that could play a key role in the future development of rural Ireland.
Public consultations
Kilkenny County Council
Proposed Variation No.8A to the Kilkenny City & County Development Plan 2021: NPF Implementation: Housing Growth Requirements. Open from 6th March – 3rd April 2026 at 23:59.
Laois County Council
Public Consultation: Variation No.1 to the Laois County Development Plan 2021-2027. Open: 25th February – 27th March 2026 at 5:00pm.