New policy paper sets out five key recommendations to lower electricity costs, strengthen energy security and accelerate electrification
10 September 2026: Ireland must make electricity more affordable if we are to reduce our reliance on fossil fuels, strengthen energy security and accelerate the transition to clean energy.
This is the key finding of the new policy paper, ‘Making Electrification Attractive’, developed by Ireland Electrified and launched at its Annual Conference 2026 taking place today (10th September) at the Radisson Blu Royal Hotel in Dublin.
The conference will feature a keynote address from Minister for Climate, Environment and Energy and Minister for Transport Darragh O’Brien TD, who is expected to highlight how Ireland will use its EU Presidency to place a renewed focus on renewable energy deployment, grid modernisation and economy-wide electrification.
The paper identifies affordability as one of the principal barriers to electrifying Ireland’s heat and transport systems.
Wind and solar power help lower electricity prices by reducing our reliance on expensive fossil fuels. When renewable energy is high, wholesale electricity prices can be around half the level seen when we rely more on imported fossil fuels. But households and businesses do not always see the full benefit, as taxes, levies and network charges add to their bills.
The latest SEAI figures show that, once these charges are applied, a unit of electricity costs 2.84 times more than a unit of gas — a gap the report terms the “spark gap”.
This price imbalance is discouraging households and businesses from switching to heat pumps, electric boilers and electric vehicles, despite their greater energy efficiency and potential to reduce Ireland’s dependence on imported fossil fuels.
The paper sets out five recommendations to make Ireland’s transition to an Electrostate more attractive and affordable for households and businesses:
- Moving energy policy and system costs from electricity bills into general taxation.
- Reforming network charges to reward flexible electricity use and establishing a clear framework for permanent flexible grid import connections.
- Reducing taxes and levies on electricity, including seeking EU approval to reduce the VAT rate on electricity to 5 per cent.
- Strengthening capital allowances and introducing targeted grants for electrification technologies and infrastructure.
- Rewarding households and businesses that shift their electricity use to periods of high renewable generation, helping them capture more affordable, clean power while supporting grid operators.
Helen O’Sullivan, Chairperson of Ireland Electrified, said:
“Electrification offers Ireland a clear path to lower energy costs, greater energy independence and a more resilient, competitive and low-carbon economy. But to deliver this transition at the pace required, consumers must feel empowered to be part of building an energy independent Ireland.”
“‘Making Electrification Attractive’ sets out clear, practical measures to reduce electricity costs, reward flexibility and ensure that the cleanest and most efficient option is also the affordable option. These measures have already delivered proven results in other countries.”
“Europe has an electrification roadmap and the technologies needed to accelerate the transition – now we need Government to act on the solutions that can make electrification work for consumers and businesses.”
Ireland spends an estimated €1 million every hour on imported fossil fuels. Accelerating electrification would allow the country to make greater use of its renewable electricity, reduce exposure to volatile international energy markets and retain more investment within the Irish economy.
Other speakers include Helen O’Sullivan, Chairperson of Ireland Electrified; Barry Andrews MEP; Mark Christal, Executive Director of Enterprise Ireland; James Atkinson, Stakeholder Engagement Manager at EirGrid and Adrian Hiel, Director of the Electrification Alliance.
The Ireland Electrified Annual Conference 2026 takes place from 9:00am to 4:00pm on Thursday, 10 September at the Radisson Blu Royal Hotel, Golden Lane, Dublin 8, with more than 100 policymakers, industry leaders, investors and innovators expected to attend.