The ESB should sell between some power plants and move from distribution and supply to buying in services on a competitive basis, according to a new report by the Economic and Social Research Institute (ESRI).
The report entitled, Aspects of Irish Energy Policy,was published today and looks at how energy policy can best deliver competitive and secure energy supply.
The ESRI said that the ESB should be allowed to replace some, but not all, the power plants while at the same time allowing new plants be built by different operators.
The institute recommends an all-island electricity market saying it would "confer significant benefits on consumers, reducing the long-term cost of providing a reliable electricity supply below what it might otherwise be."
However, it added that "businesses and households should pay the full economic cost of energy, with no hidden subsidies to ensure that increasingly expensive energy resources are allocated in an optimal manner".
The ESRI said the government should consider strengthening the crucial gas transmission network and invest in fuel diversity to help protect Ireland against the risk of oil or gas price shocks.