Irish Government Approves €3.5 Billion Investment in Electricity Grid
The Irish government announced a landmark €3.5 billion investment in the nation's electricity grid infrastructure for the period 2026-2030. Part of the National Development Plan, it marks the largest single investment in Ireland's electricity network to date, aiming to bolster energy security, stimulate economic growth, and significantly accelerate the country's transition to renewable energy.
Irish Government To Invest €3.5 billion in Electricity Grid
Ireland will invest €3.5 billion in its electricity grid infrastructure from 2026 to 2030. This significant allocation, part of the National Development Plan, marks the largest single investment in the country's electricity network to date. The primary goals are to enhance energy security, stimulate economic growth, and accelerate the transition to renewable energy within Ireland.
The investment will see €1.5 billion allocated to ESB Networks and €2 billion to EirGrid.
This funding will empower both companies to significantly increase capital investment, expanding both the onshore and offshore electricity transmission and distribution network infrastructure.
This is designed to future-proof Ireland's electricity system, ensuring it can meet the escalating demands of its economy, households, and ambitious climate targets.
The Aims of this Investment
Enhancing the grid is deemed crucial for delivering on key Government commitments, particularly the target of achieving 80% renewable electricity by 2030.
This ambitious goal requires the construction of 9GW of onshore wind, 8GW of solar power, and 5GW of offshore wind under construction by 2030 – targets that are only attainable with a modernised and efficient electricity network.
Minister for Transport, Daragh O'Brien, emphasised the potential impact of the investment, stating:
This €3.5 billion investment is about building the energy infrastructure that Ireland needs for the future. It’s about ensuring every home and business has a reliable and secure source of electricity, creating thousands of jobs, and making Ireland a more attractive place for international companies to invest and grow.
He added that a modern, resilient electricity grid is the "backbone of everything we want to achieve," from powering 300,000 new homes by 2030 to attracting vital foreign investment.
Increased Investment in Wind Energy
Minister of State with responsibility for the Marine, Timmy Dooley, highlighted the important role of this investment in harnessing Ireland's vast offshore energy resources:
Ireland's offshore energy potential is enormous, and this grid investment is essential to unlock it. Our Atlantic coastline offers some of the best offshore wind resources in the world, and with the right infrastructure, we can transform Ireland from an energy importer to an energy exporter.
The scale of this investment aims to match the expenditure observed in most European countries as they endeavour to increase renewable energy connections, enhance interconnection with neighbouring nations, and establish reliable networks for the increasing electrification of their energy systems.
Ireland's wind energy sector achieved a record-breaking performance in June 2025, providing 30% of the nation's electricity and contributing to a significant drop in wholesale electricity prices.
The latest monthly report from Wind Energy Ireland (WEI) highlights the strongest June on record for wind generation, coupled with a notable impact on consumer costs.
Ensuring Affordability and Resilience
The government's investment in ESB Networks and EirGrid will strengthen their financial standing, helping them maintain credit ratings. This, in turn, will enable the companies to borrow at lower interest rates, reducing the overall cost of investment and mitigating potential increases in electricity network charges for consumers.
In a further move to address consumer concerns, the government has established a cross-government Energy Affordability Taskforce.
This taskforce will develop an Energy Affordability Action Plan, reviewing both short-term measures for Budget 2026 and long-term structural reforms to benefit households and businesses while ensuring energy security and economic stability.
Furthermore, ESB Networks is actively implementing a Winter 2025 Grid Resilience Plan. This plan, building on lessons from recent severe weather events like Storm Éowyn, aims to strengthen the electricity network in vulnerable locations and is set to be completed by the end of October.
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