The electricity transmission network is to get a €4bn boost that will result in capacity being doubled by the year 2025.
The network operator, EirGrid, said the plan will drive renewable energy and support balanced regional development while also creating jobs.
However, the construction of new overhead transmission lines will be controversial.
Ireland has 6,000km of overhead transmission lines but electricity demand is projected to grow by 60% in just over a decade.
EirGrid says with wind power also playing an increasing role in electricity generation, the grid has to change.
Over 4,000km of transmission lines are to be upgraded while more than 1,000km of new lines are to be constructed.
Constructing new pylons is controversial and some campaigners, like North East Pylon Pressure, argue the transmission lines should be buried.
However EirGrid says all decisions will be subject to planning and they maintain people's health will not be affected.
Electricity consumers will have to pick-up the €4bn tab through small year-on-year increases in their bills.
Energy Minister Eamon Ryan says the changes will actually result in over-all savings as the revitalised grid will be able to access cheaper electricity.
