Ireland has announced a sweeping review of its electricity system, with the government promising a blueprint to reshape the country’s power sector by 2050 as it races to meet climate targets and electrify its economy.
ADVERTISEMENT
ADVERTISEMENT
Irish Climate, Energy and Environment Minister Darragh O’Brien said on Wednesday that work is underway on a long-term strategy to set out how Ireland plans to generate, transmit and regulate electricity through to 2050.
The move from Dublin comes as Ireland has taken the helm of the rotating EU Council Presidency and vowed to make electrification a priority.
The disruption in the Middle East has also revealed how the EU’s dependence on imported fossil fuels is leading to higher energy bills and inflation, with roughly an extra €50 billion spent on fossil fuel imports in just 111 days during disruptions to the Strait of Hormuz.
“Ireland’s energy transition represents a momentous opportunity for us all, to help make our economy and industries more efficient and competitive, to open new opportunities for businesses, and create tangible benefits for our communities across Ireland,” O’Brien said.
The new “Power Sector White Paper” is expected to become the cornerstone of future energy policy, guiding legislation, investment decisions and grid development as Ireland shifts away from fossil fuels towards an electricity-based economy.
The review comes as electricity demand is forecast to surge over the coming decades, driven by electric vehicles, heat pumps, industry and rapidly expanding data centres, putting growing pressure on the national grid.
Data centres, in particular, consumed 23% of Ireland’s total metered electricity in 2025, scaling up from 5% in 2015. According to the Irish Central Statistics Office, total usage almost matched the electricity used by all urban and rural households combined (28%).
At the EU level, political talks are underway to agree on how to modernise the bloc’s ageing power grid. More than a technicality, revamping the EU’s grids is paramount for EU countries to fully utilise the vast amounts of renewable energy produced and ultimately electrify the bloc’s economy.
Adding pressure to the race towards electrification, the European Commission has recently announced a 46% electrification target by 2040, in a bid to encourage EU countries to boost related investments.
A holistic approach to electrify Ireland’s economy
The White Paper will examine some of the biggest questions facing the energy transition, the Irish government said. This includes how much electricity Ireland will need, where it will come from, how the grid should evolve and how the country can balance the competing priorities of affordability, security of supply and decarbonisation.
A statement from the Irish Department of Climate, Energy and the Environment said the strategy will be backed by detailed modelling of future energy scenarios, including risk assessments, demand forecasts, infrastructure needs and governance arrangements.
“This White Paper will be a key part of guiding the energy transition to clean, secure, affordable electricity. It will set a path to deliver — for this generation and future generations,” O’Brien added.
“It will require national conversation and collaboration. Starting today, I invite all stakeholders across government and the public, private and voluntary sectors to work with us on this initiative.”
The initiative forms part of Ireland’s commitment to achieve climate neutrality by 2050 under EU law, with electrification remaining the government’s central strategy for cutting emissions across transport, heating and industry.
France was the first EU country to announce its own electrification plan aimed at cutting reliance on fossil fuels. Other EU countries are likely to follow suit.
However, for the EU to fully succeed in electrifying the bloc’s economy, the current high electricity prices must be addressed, or households and businesses won’t have sufficient incentives to switch.
The Commission recently asked member states to ensure that electricity is not taxed more heavily than gas, while leaving governments free to determine the structure of their national tax systems under the EU’s energy taxation rules.
Eva Schwab, energy poverty policy officer at the European Federation of National Organisations working with the homeless, said that electrification will only succeed if everyone is included.
Schwab regretted that the Commission plan, seen as a model for EU countries to emulate, makes no mention of energy poverty.
“Without targeted support, the households that stand to benefit most from lower energy bills will remain locked into expensive fossil fuels while better-off households capture most of the gains.”