Real Estate, Energy and Construction
Key points
Real Estate: Growing demand for life sciences real estate in Ireland is recognised by the Government’s Next-Generation Sites strategy, which is focused on delivering strategically located and serviced regional development sites.
Energy: The transition from fossil fuels to renewable energy sources is increasingly being driven not only by decarbonisation objectives, but also by industrial competitiveness. A range of legal and policy initiatives are expected to emerge in pursuit of this goal.
Construction: Increased inspections and enforcement activity by the Health and Safety Authority highlight the importance of effective risk management across construction projects, not least in the life sciences sector, where multiple interfaces can pose unique health and safety challenges.
Real Estate
The life sciences sector’s continued growth demands significant investment in real estate assets. Companies in this space face strategic decisions about whether to build, purchase, or lease properties, with location and room for expansion being critical considerations.
The Irish Government is taking concrete steps to support this growth. In April 2026, it approved the Next-Generation Sites strategy, led by IDA Ireland, which aims to establish master-planned landbanks of 500 to 1,000 acres each across the West, East, and South of Ireland over the next 15 years. IDA Ireland’s capacity to deliver on this will be bolstered by the Industrial Development (Amendment) and Miscellaneous Provisions Bill, which will expand its powers to partner and co-invest with third parties, including other Government agencies and the Ireland Strategic Investment Fund (ISIF), in developing property and infrastructure. The Bill will also modernise grant supports for IDA clients investing in sustainability and digital transformation.
For real estate investors, the life sciences sector also offers a compelling opportunity for resilient portfolio diversification. As regional life science clusters develop in Ireland, this diversification extends beyond asset class to include geographic spread into the regions.
Sustainability and brand enhancement also remain key drivers in all investment decision-making. While laboratories are energy-intensive, new life science developments that are designed and built to operate in a way that optimises energy efficiency, incorporating sustainable design and leveraging the latest technologies and data infrastructure, are well placed to achieve excellence in sustainable operation.
The life sciences industry is also a leader in the creation of social value through the development of life-saving treatments and tools, championing STEM and collaborative and community-centred engagement. Life science real estate investment has the potential to enhance ESG strategies by delivering a significant and measurable positive social contribution in making that innovation and social value possible.
Energy
"Electrification is becoming a lever for industrial competitiveness."
ENERGY PRICES AND SECURITY OF SUPPLY
Energy prices and security will be a focus of the Irish Presidency of the EU in H2 2026. Electrification is becoming a lever for industrial competitiveness. An Electrification Action Plan is expected in Q3 2026 (signalled by Accelerate EU), aimed at speeding up electrification of energy consumption in industry. There is also a new legislative proposal to amend law on electricity network charges and taxation, further underpinning the policy of making electricity (from a decarbonised system) competitive relative to fossil fuels. The Industrial Accelerator Act is also being negotiated. As we indicated in our briefing, some pharmaceutical activities may ultimately fall within scope of certain provisions. Revision of the EU framework on security of gas and electricity supply is also underway with implications for how supply risks are managed.
The policy trajectory will be relevant to business cases for electrification and planning and permitting strategies for new facilities. Much will depend on delivery and optimisation of infrastructure at national level, which are key priorities for Ireland’s cross-Government Accelerating Renewable Electricity Taskforce.
Read our briefing on The EU Industrial Accelerator Act: Impacts on renewable energy auctions, public procurement and FDI
GRID ACCESS, PRIVATE WIRES AND FLEXIBILITY
Timely, competitively priced grid access is critical for demand customers. The Irish Presidency will pursue agreement on the EU Grids Package, intended to achieve more efficient use of existing grid and to accelerate planning and delivery of new grid, along with recent EU guidance. Significant increases in grid investment in Ireland are planned, as outlined in our 2026 What’s another year? Horizon Scanner.
A Government Policy Statement on private wires proposed several use cases for permitting private wires, including connecting a customer directly to an electricity generator, which has potential relevance for life sciences campuses. A Bill focusing on direct lines is now before the Oireachtas. We consider the Bill in our Insights blog post: Energy Update: Direct Lines Bill.
Ireland’s first Flexibility Needs Assessment ("FNA") is anticipated in Q3 2026. The National Energy Demand Strategy remains the domestic policy framework in which flexibility products are developed (and this is an area with legislative underpinning). Where operational requirements permit, life sciences operators may wish to consider whether flexibility agreements could reduce costs and generate revenue.
Read our 2026 What's another year? horizon scanner.
DECARBONISATION AND EFFICIENCY
As Ireland seeks to meet renewable energy targets, corporate power purchase agreements (“PPAs”) (and private wires) will increase decarbonisation opportunities for large energy users. Recent guidance on removing barriers to PPAs looks at multi-buyer PPAs, standardisation of contracts, and biomethane and heat PPAs, as well as greater time granularity for guarantees of origin. Much of this has legislative underpinning and is relevant for companies pursuing 24/7 carbon-free energy matching under their Scope 2 reporting frameworks.
A Large Energy-User Action Plan prepares for a plan-led approach to the location of very large energy user sectors, especially in the period after 2030, including through identifying green energy park locations. The intent is to facilitate co-locating energy-intensive industrial developments with indigenous renewable energy supply.
Biomethane production needs to increase to meet the State’s 2030 goal. Development of an obligation on fuel suppliers for heat to source a percentage of fuel from renewable sources will be delayed following a finding that a design feature was incompatible with internal market rules. Separately, new State aid approval is in place for the support scheme for renewable heat, intended to support industrial decarbonisation. The latest date on which aid can be granted is 31 December 2030 and payments can be made up to 2047.
The EU ETS is under review (PDF 643 KB), with potential expansion to other sectors in the mix of outcomes. The part-ETS funded Industrial Decarbonisation Bank, under development, could benefit life sciences where they qualify as industrial emitters or host energy‑intensive processes. The Carbon Border Adjustment Mechanism is operational and further goods are to be brought in scope. These developments should be kept under review for impact on cost and decarbonisation strategies.
The rules around energy management systems and energy audits are changed by the recast Energy Efficiency Directive and potentially capture more entities. Transposition in Ireland is awaited. For more on potential impact and upcoming deadlines for business, see our Insights blog post: Energy management systems and energy audits: New rules under the Recast Energy Efficiency Directive. Transposition of the Energy Performance of Buildings Directive is also underway, with further legislation expected following some initial reforms.
Workplace inspections are projected, by the end of the year, to reach
Construction
The sharp rise in workplace fatalities in 2025 was a setback for health and safety in Ireland and underscored the importance of effective risk management across the construction sector. In response, the Health and Safety Authority has increased its targeted number of workplace inspections in its Programme of Work for 2026. Workplace inspections have been gradually increasing over the last five years, from 9,300 in 2022 to a projected 12,450 at the end of 2026. Further, the HSA Strategy Statement 2025-2027 (PDF 2 MB) specifically notes that farming and construction accounted for three-quarters of all work-related fatalities in recent years and emphasises that these sectors will continue to be in focus for the 2025-2027 period.
A defining feature of construction in the life sciences sector is co-activity with live or partially operational environments. Further, construction projects in the life sciences sector will typically involve multiple overlapping contractors (for example, general contractors, cleanroom specialists and process vendors), giving rise to additional safety risk at interfaces.
While life sciences sites typically operate under extremely mature safety systems, it is important for companies in the sector to be cognisant of the fact that, given these interfaces, on life sciences projects risk frequently sits between parties rather than with them. Oversight mechanisms at the client level are therefore of central importance, not only to ensure legal compliance but to enable safe and efficient project delivery.
What's next?
The renewed Government focus on life sciences real estate will be welcomed by the sector. It also presents a compelling dual opportunity for investors: resilient portfolio diversification, underpinned by strong ESG credentials.
Private wires, corporate PPAs, and refinement of guarantees of origin will be key areas to watch, while EU legislation increasingly targets prices and security of indigenous energy supply.
While life sciences sites typically have advanced safety systems, the recent and trending increase in enforcement action and inspections by the HSA serves as an important reminder that companies in the sector must continue to have a laser focus on health and safety.
Authors
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