The scheme has been published by the Government
The 10 year scheme is expected to generate 500 million euro over 10 years - using the proceeds of existing oil levies.
It will be brought before the Oireachtas later this year providing the Programme for Government is passed by Fine Gael, Fianna Fail and the Green Party.
Minister for Climate Action Richard Bruton says it would also help employees at peat power stations which will be closed:
