Advancing Europe’s energy agenda
Over the last few decades, European Union (EU) policy has been transformative for the energy sector: from market reforms and decarbonisation mandates, to targets for renewable energy and energy efficiency that have accelerated the green transition.
The decisions made at European level continue to shape the Irish energy system, and Ireland’s Presidency of the Council of the EU provides an opportunity to drive forward the policy and regulatory framework to make that system more resilient and competitive towards 2030 and beyond.
Europe still relies on imported fossil fuels for around 60 per cent of its energy needs, creating challenges on multiple fronts. Climate targets enshrined in EU and national legislation mean Europe must urgently cut emissions by replacing coal, oil, and gas with clean power sources. Meanwhile, geopolitical instability continues to impact the supply and price of fossil fuels. To strengthen energy security and affordability in the long term, Europe needs to become more autonomous and build out home-grown renewable generation.
As Ireland’s foremost energy utility, ESB is closely engaged with developments at European level through representative organisations like Eurelectric. With the Irish electricity system currently in a critical phase as the €13 billion grid investment under Price Review 6 (PR6) gets underway, and as we push to accelerate the rollout of new renewables, a number of key priorities will be in focus during the Irish Presidency where EU policy can make a real difference to delivery.
Accelerating infrastructure
To make the clean energy transition happen, Europe needs to rapidly expand its electricity infrastructure. This means building new renewable generation and energy storage, and upgrading the electricity grid so it can integrate greater volumes of renewables while accommodating growing demand for electricity. Investment in grids will also support flexibility, ensuring power can efficiently flow where and when it is needed.
One key file that can support these objectives is the European Grids Package. Brought forward by the European Commission in late-2025, this set of proposed measures includes actions around delivery of trans-European energy networks and a directive to accelerate permit-granting procedures related to grids. Measures on faster consenting and digitalised permitting should be important in reducing timeframes in deploying renewables, EV chargers, and batteries. During Ireland’s Presidency, interinstitutional negotiations (trilogues) on the file will take place, between the Council, the European Parliament, and the Commission.
Another file to watch is the Industrial Accelerator Act, proposed by the Commission in March 2026 and intended to strengthen European competitiveness and decarbonisation by supporting low-carbon manufacturing, clean technologies, and investment in strategic sectors.
For the electricity sector, it will be important to get the detail right on ‘Made in EU’ procurement requirements to avoid unintended knock-on effects that could increase costs, lengthen delivery timelines, constrain supply, and add complexity to essential grid delivery. The Council and Parliament are currently developing initial positions on the file.
Energy efficiency and electrification
Enhancing energy efficiency is the fastest, most cost-effective way to reduce the EU’s dependence on imported fossil fuels while lowering emissions. Electrification – replacing fossil fuels with electricity – also accelerates emissions reduction, allowing sectors like transport, heating, and industry to take greater advantage of clean renewable electricity.
Unveiled by the Commission just weeks into Ireland’s Presidency, the Electrification Action Plan has set the future direction in this arena, sending a clear signal that electrification is core to decarbonisation and cost competitiveness. It points to the imperative of making electricity cheaper and increasing the share of clean and affordable homegrown energy.
The Commission will begin delivering the measures announced in the plan to reduce the gap between electricity and fossil fuel prices. These include a legislative proposal to reform taxes and levies to make electricity-based technologies a more attractive choice. In recognition that the share of electricity in EU energy consumption has been stuck at around 23 per cent for a decade, the plan proposes an indicative 2040 electrification target of 46 per cent of final energy consumption. The Commission is set to undertake an impact assessment, with a firmer proposal expected towards the end of the Presidency.
Affordability
Energy affordability remains a key concern at national and European level, and practical approaches are needed to make sure that the shift to clean energy does not disproportionately burden those least able to pay. These can include targeted subsidies and grants for low-income and vulnerable groups to help offset costs for households most at risk of energy poverty.
Tax incentives can also help reduce the cost of investing in energy efficiency measures or adopting renewable technologies. Continued public investment in key infrastructure, such as upgrading electricity grids and expanding public transport, is also essential to lower overall transition costs and ensure widespread access to affordable clean energy. These measures, taken together, can help deliver a fair and inclusive transition.
In addition to ongoing work on the EU’s Multi-Annual Financial Framework (which sets out the EU’s long-term spending plans), a file to watch during Ireland’s Presidency is the legislative proposal to future-proof electricity bills. Covering network charges, taxation, and grid connection management, its aim is to make electricity more affordable than fossils fuels. Under the proposal, the use of taxation measures to achieve cheaper electricity will be at the discretion of the member state. With this file just at the beginning of its journey, negotiations are expected over the course of the next year.
Clean energy future
All in all, these measures being proposed and voted on at European level have the potential to accelerate the energy transition at a crucial juncture. The six months of the Irish Presidency present a unique opportunity to progress this agenda and advance a fair, flexible, and affordable clean energy future for Ireland and for Europe.
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