The IDA said Ireland was losing ground to other EU countries and the United States because of the high cost of energy.
In a series of briefings for the government, the investment agency said strong security of power supply was “imperative” for enticing companies into Ireland.
It said the operating environment for foreign direct investment was becoming more difficult, more aggressive, and with a “relentless focus on competitiveness.”
The IDA briefing said that traditional drivers of investment like market access, tax, and talent were still important.
However, it added: “New drivers such as digital/green, subsidies/incentives, and friendly nation status make the environment more complex.
“Adding to the challenge for IDA in sustaining/winning investments are constraints to the carrying capacity of Ireland’s economy and utilities – which are causing significant delay, backlogs and reputation risks to winning new investments.”
The briefings were prepared last summer for the Department of the Environment as the investment agency warned Ireland’s financial position was heavily dependent on foreign direct investment (FDI).