ESB Chief Executive Padraig McManus says some €1bn a year will be spent by the industry over the next five years to guarantee Ireland's supply of electricity.
He was speaking at a sod turning ceremony this afternoon to mark the beginning of the construction of a new €400m ESB power station at Aghada in east Cork.
Mr McManus said the ESB alone would be spending €3.5bn upgrading its network between now and 2012, as well spending €500m on the new Cork plant and upgrading the existing Aghada plant.
He says efficient power generation will be critical to the success of the new all-island single electricity market, which comes into effect next month.
He says the benefits will pay dividends for customers in the not too distant future.
The new €400m plant, which will be a 400MW gas turbine power plant, will be operational by October 2009.
A further €100m is being spent on a major overhaul of the existing Aghada plant.
A staff of 78 will be responsible for the two plants which will produce 925MW of power.
