The ESB today announced an investment programme of €22 billion ($34.72 billion), half of which it plans to spend on renewable energy sources.
The company aims to halve its carbon emissions within 12 years, by which time it will be delivering one-third of its electricity from renewable generation, and to achieve a "carbon net-zero" by 2035, it said.
"This will include over 1,400 megawatts of wind generation, in addition to wave, tidal and biomass," it said. Ireland imports nearly 90 per cent of its fuels.
The company said it would invest €4 billion directly in renewable energy projects and €6.5 billion to "facilitate" renewables by smart metering and smart networks.
European Union countries agreed last year to cut emissions contributing to global warming by 2020 and increase the share of wind, solar, hydro and wave power in electricity output by the same date.
Aside from cutting emissions by at least one-fifth by 2020 from 1990 levels, EU states have agreed to use 20 per cent of renewable energy sources in power production, and 10 per cent of biofuels from crops in transport by the same date. Ireland has set a target of obtaining a third of electricity from renewable sources by 2020.
Minister for Communications, Energy and Natural Resources Eamon Ryan, praised ESB for making the shift towards greener power.
"As the ESB takes a historic decision to become a green utility company, it is clear that the programme of change is well and truly under way," Mr Ryan said. Mr Ryan said the plan plays to ESB’s traditional strengths of engineering expertise.
"In solving our climate change and energy security challenges at home the company will also gain new expertise that should ensure their continuing success in international markets," he said. "The company’s commitment to a new low carbon future is a signal that every business, every farm, every home and every institution in the state should move in the same direction."
ESB said the investment will ensure at least a further 6,000 megawatts of wind wave, tidal and biomass power is harnessed on the island. This could power more than 6,000 homes. The smart meters will also allow small energy producers to sell electricity back to ESB and allow householders to manage their power use to cut costs.
Lochlann Quinn, ESB chairman, said the company was operating in a dramatically changing environment.
"Three overarching concerns now exist - the consequences of climate change, energy security and competitiveness of energy supply and ESB is strong, focussed and prepared to deal with them," Mr Quinn said.
Padraig McManus, ESB chief executive, said the power generator had in the past demonstrated its ability to change without damaging profits. "ESB is now entering a new period of particular challenge that we embrace with enthusiasm and vigour," Mr McManus said.
"This robust plan will deliver tangible and sustainable results for the economy as we face global challenges in a coherent and managed way. It positions us as a leading energy company in Europe."
Simon Coveney, Fine Gael energy spokesman, said the investment would help to highlight the economic case for green power.
Martin Ferris, Sinn Fein spokesman on energy, said the ESB plan was highly significant. “In addressing these issues in the past I have pointed to the low level of state investment in areas such as wind and tidal energy and am pleased to see that this seems set to increase dramatically,”