The existence of the national power grid system means that power stations do not have to be located adjacent to, or within, large population centres. This was not always the case, and in the early part of the 20th century Dublin's first power station was located in the heart of the city centre at Fleet Street.

When a number of different power stations are feeding into the grid, the most efficient ones can be chosen to produce electricity first, in order to minimise electricity production costs.  With the advent of liberalisation, the electricity market has been designed to deliver, over time, lower electricity prices.