Some €300m will need to be set aside as incentives to boost Irish wind farm development if the Republic is to meet its renewable energy targets, the utility regulator has said.

A total of 40% of Ireland's electricity is to be supplied by renewable sources by 2020, under an agreement the State reached with the EU.

To meet this target, more wind farms will need to be constructed along with specialised gas-fired power plants, which would be used if the wind farms failed to generate enough or cannot be used.

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Proposals for the future construction of these facilities was put together by Eirgrid, the national grid operator.

The plans included a number of incentives and payments that Eirgrid believe will be needed to guarantee the specialist power plants can operate and produce a return for investors.

According to the Commission for Energy Regulation (CER), the incentives and payments package would cost €300m, a cost that would ultimately be passed on to consumers and businesses.

A final decision has not been taken on Eirgrid's proposals, with the CER and the Single Electricity Market Committee asking the grid operator to review their proposal and to carry out a cost-benefit analysis.

(MH/JP)