The company's interim results for January to June this year reveal that operating profit has increased by €157 million compared to the same period in 2022.
ESB Group has said that the surge in operating profit has enabled it to increase capital investment by 46% to €779 million in comparison to January to June 2022.
The capital investment is going towards the development of new wind and solar generation and significantly increasing the amount of renewable generation connected to Ireland's electricity networks.
Paul Stapleton, ESB’s Chief Financial Officer said: "We fully understand that people find it difficult to comprehend energy company profits at a time when prices for families and businesses remain high. As ESB’s generation and supply businesses are required to operate separately, we cannot use profits from ESB’s generation business to offset Electric Ireland’s prices. However, we remain committed, as we have been throughout the energy crisis, to supporting our customers in so far as we can. It remains crucial that ESB continues to earn sufficient profits to allow us to support the increased investment required to deliver a future powered by clean electricity.
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"This increased level of investment is required to ensure a reliable and sustainable electricity system as we transition to net zero. During the first six months of 2023, ESB invested €779 million of capital expenditure to support energy security and to lower the carbon intensity of our networks and our generation portfolios. These results, and the sustained financial stability of ESB, provide the basis for continued strong investment in a cleaner and more resilient energy future in line with the company’s strategic ambition of Net Zero by 2040."
The state owned electric company said it "recognises the ongoing challenges posed by high energy prices" for Irish customers. Since winter 2020 Electric Ireland has pledged over €63 million to customer supports. This included foregoing profits in its ROI residential electricity business in 2022, and giving a €50 credit to each of its 1.1m customers, which was paid in early 2023.
Mr Stapleton stated: "Market conditions have been relatively more stable in the first six months of this year, with wholesale prices reduced from the peaks of 2022, albeit they are still significantly higher than pre-energy crisis levels. If this downward trend in wholesale prices continues, customers should progressively see the benefit reflected in lower energy prices. It is positive that Electric Ireland was in a position recently to announce reductions of 10% for electricity and 12% for gas for its 1.1m residential customers in the Republic of Ireland. Electric Ireland continues to offer competitive retail prices as it has throughout the energy crisis and keeps its prices under constant review."
