Minister O'Brien announces publication of department's NDP Sectoral Capital Plan for 2026-2030

Minister for Climate, Energy and the Environment Darragh O'Brien has today launched the department's Sectoral Capital Plan for 2026-2030 under the National Development Plan. The plan is strongly aligned with the goals, objectives and actions of the Department of Climate, Energy and the Environment's new Statement of Strategy, Le Chéile 28 (published in September).

The Sectoral Capital Plan provides for a total capital funding envelope under the National Development Plan of up to €5.640 billion and describes priority investments in the energy, climate and circular economy sectors over the next five years, together with planned electricity grid investments that will be leveraged by a separate equity investment of €3.5 billion in EirGrid and ESB.

Under the department's Sectoral Capital Plan, a key priority will be to meet the commitments in the Programme for Government to allocate a share of annual carbon tax proceeds for investment in energy efficiency programmes. The largest single programme in the plan, up to €3.7 billion, will be invested in residential energy efficiency programmes through the Sustainable Energy Authority of Ireland. This funding will enable the department to expand delivery of the National Retrofit Plan, to increase the delivery of home energy upgrades to homeowners, community groups and, through the Warmer Homes Scheme, households at risk of energy poverty towards the cost of a range of home energy efficiency measures aimed at reducing energy consumption and supporting the transition away from fossil fuels.

Other key priorities under the plan include:

• Continuing sustained action to tackle the climate crisis and to decarbonise the economy, including by accelerating delivery of actions to achieve national and EU targets in emissions reductions to 2030 and 2040 and setting a pathway to net-zero emissions no later than 2050
• Delivering the energy infrastructure required to sustain a growing economy
• Improving our competitiveness in a changing world and preparing Irish enterprises to position Ireland ahead of emerging economic trends
• Making Ireland's buildings more sustainable and energy-efficient, reducing reliance on fossil fuels, and lowering energy costs for households, by promoting retrofitting, renewable heat and solar energy solutions and technologies
• Leading a revolution in renewable electricity with a commitment to achieving 80% of Ireland's electricity generation from renewable sources by 2030
• Ensuring our communities thrive, including by empowering communities in renewable energy and making climate action accessible; and
• Promoting a circular economy

Commenting, Minister O'Brien said:

Minister of State with responsibility for Circular Economy Alan Dillon said:

Minister of State with responsibility for the Marine Timmy Dooley said:

The department's NDP Sectoral Capital Plan for 2026-2030 can be viewed on its website.

ENDS

Equity injection for ESB Networks and EirGrid

The department's Sectoral Capital Plan sets out planned ESB and EirGrid investments of up to €18 billion that will be leveraged by the State's equity investment of €3.5 billion, based on the CRU's draft determination for Price Review 6 (PR6). This equity investment is additional to the Department’s NDP capital ceilings for 2026-2030 and is being provided to the companies through separate statutory processes.

All spending by EirGrid and ESB Networks is agreed with the CRU in five-year cycles, referred to as Price Reviews. The current price review (Price Review 5) is in effect until the end of 2025 and saw the CRU sanction an over €8 billion capital investment in the Grid over the period 2021-2025.

On 3 July, the CRU published its Draft Determination on Price Review 6 (PR6). PR6 will deliver upon the Programme for Government priority to ensure that the necessary investment is made in the electricity grid. The Draft Determination proposes an investment of up to €18.08 billion in our electricity system between 2026-2030, with a €14.1 billion baseline investment guaranteed.

The Draft Determination will enable the delivery of over 500 capital network projects, supporting economic growth, the connection of new housing to our electricity system, the integration of greater renewable energy, both on and offshore, and decarbonisation. This will see major investment in the onshore electricity grid and represents a step change in grid development and investment, a process which will see further progressive scaling during the 2030s to meet future targets.

The PR6 consultation process closed on 11 September, and the final CRU determination is expected by the end of the year.

The Electricity (Supply) (Amendment) Bill 2025 was published on 30 October and completed all stages in Dáil Eireann as of 5 November. Once enacted, it will allow government to invest €1.5 billion in ESB Networks for critical development of our electricity infrastructure. The bill also provides for an increase in the statutory borrowing limit of ESB from €12 billion to €17 billion.

Key departmental capital programmes

Indicative investment envelopes for key departmental programmes are set out below. All programme envelopes are subject to future adjustment in line with programme expenditure and emerging priorities.

The department will complement its allocations under the National Development Plan with funding from a range of additional sources, including income from the statutory Climate Action, Market Cap and Circular Economy Funds, and from the Energy Efficiency National Fund. The Department also expects to receive continuing funding over the 2026 – 2030 period from ongoing EU programmes to support delivery of key investment priorities.

Programmes indicatively identified as receiving funding under the Infrastructure, Climate and Nature Fund are subject to a formal designation process in accordance with the legislation for the fund.