Ireland unveils plan to electrify economy by 2050

Ireland has launched a comprehensive review of its electricity system, outlining plans to transform the country's power sector by 2050 as it seeks to meet climate goals and accelerate the shift toward an electrified economy.

Climate, Energy and Environment Minister Darragh O'Brien announced that the government is preparing a long-term strategy detailing how Ireland will generate, transmit and regulate electricity through mid-century, Caliber.Az reports, citing Euronews.

The initiative comes as Ireland assumes the rotating presidency of the Council of the European Union, with Dublin pledging to make electrification a key priority during its term.

The government also pointed to recent instability in the Middle East, saying Europe's dependence on imported fossil fuels has contributed to higher energy prices and inflation. According to Irish officials, disruptions in the Strait of Hormuz led the EU to spend roughly an additional €50 billion on fossil fuel imports over a 111-day period.

"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 planned Power Sector White Paper will serve as the foundation of Ireland's future energy policy, guiding legislation, investment and grid expansion as the country moves away from fossil fuels toward an electricity-based economy.

The review comes amid expectations that electricity demand will rise sharply over the coming decades, driven by growing use of electric vehicles, heat pumps, industrial electrification and rapidly expanding data centres, placing increasing strain on the national grid.

Data centres have become a major contributor to electricity demand, accounting for 23% of Ireland's metered electricity consumption in 2025, up from just 5% a decade earlier. Figures from the Irish Central Statistics Office show their electricity use nearly matched that of all urban and rural households combined, which accounted for 28%.

At the European level, negotiations are continuing on modernising the EU's ageing electricity grid, a key step toward integrating larger volumes of renewable energy and supporting the bloc's transition to an electrified economy.

Adding momentum to the transition, the European Commission recently proposed raising the EU's electrification target to 46% by 2040 to encourage greater investment across member states.

According to the Irish government, the White Paper will examine key issues shaping the country's energy future, including projected electricity demand, future energy sources, grid development and how to balance affordability, energy security and decarbonisation.

The Department of Climate, Energy and the Environment said the strategy will be supported by detailed modelling, covering future demand, infrastructure requirements, risk assessments and governance frameworks.

"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 strategy forms part of Ireland's commitment under EU law to achieve climate neutrality by 2050, with electrification remaining central to reducing emissions from transport, heating and industry.

France was the first EU member state to introduce a national electrification strategy aimed at reducing dependence on fossil fuels, and other countries are expected to adopt similar plans.

However, experts warn that the success of Europe's electrification drive will depend on lowering electricity prices to encourage households and businesses to move away from fossil fuels.

The European Commission has recently urged member states to ensure electricity is not taxed more heavily than natural gas, while allowing governments to maintain flexibility under the bloc's energy taxation framework.

Eva Schwab, energy poverty policy officer at the European Federation of National Organisations Working with the Homeless, said electrification will only succeed if vulnerable households are not left behind.

She criticized the Commission's strategy for failing to address energy poverty, warning:

"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.”

By Bakhtiyar Abbasov