Consumers will be able to reduce electricity costs with the introduction of a so-called smart electricity grid.

A report by Sustainable Energy Authority of Ireland and Eirgrid, which runs the electricity network, said a smart grid would allow consumers to manage their consumption better.

"Ireland is ideally positioned to lead the way internationally on the implementation of smart grids. We are known for our expertise in IT, software and communications. This, combined with our abundant renewable energy resources, positions us to become a world leader and presents many business opportunities. Achieving an intelligent electric system will bring significant benefits for consumers and our economy," said Owen Lewis, chief executive of SEAI.

The report said that development of a smart grid would provide significant opportunities for businesses to use Ireland as a test-bed because of the country's skills and technologies.