The European Commission has awarded €4m to build an electricity inter-connector linking France with Ireland.
The Celtic inter-connector will make it possible for energy to be traded more freely between EU countries.
It will also improve Ireland's security of energy supply and, it is hoped, our broadband connectivity.
Ruth Deasy of the EU Commission in Dublin said: "This €4m grant is the next step to getting 600kms of cable laid between France and Ireland.
"It will mean Ireland will have a much more secure energy supply (and0 will be able to take advantage of lower prices on the open energy market.
"These cables will also carry fibre-optics which may improve our internet and broadband capabilities."