The Government has approved legislation paving the way for a €1.5 billion investment in ESB Networks to support major upgrades to Ireland’s electricity grid over the next five years.

The Electricity (Supply) (Amendment) Bill 2025, published on Wednesday, will enable the State to provide equity funding to ESB Networks as part of plans to modernise and expand the grid in line with the updated National Development Plan. The legislation will also increase ESB’s statutory borrowing limit from €12 billion to €17 billion.

The investment will form part of ESB’s wider €13.4 billion programme to upgrade critical electricity infrastructure between 2026 and 2030, including more than 500 projects nationwide. These will involve new and upgraded substations, over 300 kilometres of underground cables, and the replacement of 50,000 poles.

Minister for Climate, Energy and the Environment Darragh O’Brien said the investment would “future-proof” Ireland’s electricity system and ensure energy security for homes and businesses. He said it would also create thousands of jobs and strengthen the grid against future weather events.

Paddy Hayes, chief executive of ESB, said the proposed legislation would support the company’s investment in an “increasingly decarbonised” electricity system that underpins housing growth, economic development and network resilience.

The equity funding forms part of a €3.5 billion Government package approved earlier this year to support investment in the electricity network, with €2 billion allocated to EirGrid over the next five years under separate legislation.

The Commission for Regulation of Utilities is currently finalising its draft Price Review 6, which sets out up to €18.1 billion in potential electricity system investment to 2030, including targets for new housing connections, electric vehicles and data centres.