Agri-food sector fuels March industrial and commercial gas demand, as food and beverage production ramps up

Gas Networks Ireland’s latest gas demand statement indicates that a seasonal increase in food and beverage production, driven by the spring dairy peak, led to a 39 per cent month-on-month rise in the sector’s gas demand in March.

The increase reflects a well-established seasonal pattern¹, as higher milk volumes during the spring period drive a surge in processing activity across some of Ireland’s largest food production facilities. Dairy processing is energy-intensive, with gas demand typically rising each spring as production scales up. As the food and beverage sector typically accounts for approximately eight per cent of Ireland’s overall gas demand, these seasonal shifts can have a noticeable impact on monthly demand trends.

Overall gas demand increased one per cent month-on-month in March but was four per cent lower year-on-year.

Across the wider picture, total gas demand increased by five per cent in Q1 2026 compared with the previous quarter and was one per cent higher year-on-year, reflecting continued activity across key sectors. 

Gas continues to play a critical role in Ireland’s energy system, supporting homes, businesses and key industries, including the agri-food sector. It provides a reliable and flexible source of energy for heat and power, particularly during periods when renewable electricity generation is lower. 

In Q1 2026, gas accounted for 38 per cent of Ireland’s electricity generation, while gas generated 33 per cent of Ireland’s electricity in March. Gas-fired electricity generation peaked at 65 per cent² in March and 67 per cent² during the first quarter of the year. It did not fall below 14 per cent² in March or 12 per cent² across Q1, highlighting its role in maintaining electricity system stability.

Wind generation accounted for 40 per cent of electricity in March and 38 per cent across Q1, while solar contributed 3 per cent in March and 2 per cent during the quarter. While renewable output remained strong overall it varied at times, reinforcing the importance of flexible gas-fired generation in supporting the system.

Commenting on the latest figures, Gas Networks Ireland’s Director of Strategy and Regulation, Edwina Nyhan, said:

“The increase in industrial and commercial gas demand in March reflects the seasonal nature of Ireland’s agri-food sector. With farming playing such a vital role in the Irish economy, gas is essential in supporting that activity, providing a reliable and flexible energy source for processors during periods of increased output.” 

^{1 The Food and Beverage sector increases in March over the last three years: +33% MoM in 2025; +31% MoM in 2024; +33% MoM in 2023
2 All peak and low measurements recorded over a 15-minute resolution}