Electricity bills could rise by up to 30 per cent under new carbon tax laws, according to a report commissioned by the Department of the Environment.
The study by consultants Byrne O'Cleirigh said prices may increase by between 5 and 30 per cent "depending on the scenario" when restrictions on carbon-dioxide emissions are introduced next year.
The findings underscore the depth of the challenge facing the economy as it prepares to cap CO2 discharges, said Mr Peter Brennan, managing director of A&L Goodbody Consulting.
"This is going to be a huge issue for the powergen sector," he said.
The ESB said it was aware of the report but would not respond until it had studied it in detail.
Its comments came as Irish industry gave a muted reaction to the publication by the Environmental Protection Agency of emission limits for the State's 100 heaviest producers of CO2.
Although several major companies had previously warned that carbon taxes would damage their ability to compete and could lead to redundancies, their response to the EPA's announcement was cautious and understated.
The ESB said the unveiling of the EPA targets marked the beginning of a long process.
Heineken Ireland, which last week said the carbon tax regime could throw into doubt the future of its brewery at Lady's Well in Cork, was also keeping its own council.
A spokeswoman said the group was still examining the EPA figures.
Irish Cement, which had said the proposed new regime could "threaten the very existence and development of cement manufacturing in Ireland", said it was too soon to comment.
IBEC, the employers' organisation, which has campaigned for "realistic" emission targets, said it still had misgivings about the Government's strategy but acknowledged that concerns over competitiveness had been taken into account.
While most of the top 100 carbon producers face cutting emissions by 2-5 per cent, the EPA targets mean some may have to slash discharges by up to 10 per cent, said Mr Brennan.
The cost to industry could be abated if builders were legally obliged to use environmentally friendly cement in their concrete, according to Ecocem Ireland, a manufacturer of "eco-cement".
Mr Donal O'Riain, group managing director said: "Carbon taxes and potential breaches of our Kyoto and EU emission reduction obligations will incur substantial extra costs on the economy unless currently available alternatives to traditional cement are made more accessible."