A landmark €3.5 billion investment in Ireland's electricity grid infrastructure has been officially approved as part of the government's National Development Plan.

The investment will see €1.5 billion allocated to ESB Networks and €2 billion to EirGrid, enabling both companies to significantly increase capital investment to expand Ireland's onshore and offshore electricity transmission and distribution network infrastructure.

This commitment, which represents the largest single investment in the country's electricity network in its history, will future-proof Ireland's electricity system and ensure it can meet the growing demands of economy, homes and climate targets.

The enhanced grid will be crucial to deliver on key Programme for Government commitments, including achieving 80% renewable electricity by 2030. This requires building 9GW of onshore wind, 8GW of solar power, and 5GW of offshore wind in construction by 2030.

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Commenting, Minister O'Brien said: "A modern, resilient electricity grid is the backbone of everything we want to achieve — from powering the 300,000 new homes we've committed to build by 2030, to attracting the foreign investment that creates jobs in communities across Ireland. This investment will help to deliver energy security for Irish families and businesses, while helping us reach our target of generating 80% of our electricity from renewable sources by 2030."

Minister of State with responsibility for the Marine, Timmy Dooley, added: "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 the investment is reflective of expenditure required in most European countries as they seek to increase connections of renewable energy, interconnect with neighbouring countries and provide reliable networks for the increased electrification of the energy system.

The investment forms part of the Price Review 6 (PR6) process currently underway, with a final decision by the Commission for Regulation of Utilities (CRU) expected by the end of the year.