Energy firm Eirgrid will create 30 jobs directly while 200 people will be employed building power lines and sub-stations, reports RTE.
A further 50 jobs will be created in the professional service sector.
Some analysts have said 40% of Ireland's electricity will be generated by wind by 2020.
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Much of the infrastructure to be built will be used to get electricity generated on the west coast to the east of the country.
Around 3,500km of transmission lines will be installed during the upgrade project, which will also increase the length of the transmission network.
Irish Energy Minister Eamon Ryan has welcomed the announcement, saying: "Ultimately, the grid must be built. While we have met our 15% target for renewables and reached second or third place in Europe in terms of integration of wind in our system, we will not make progress unless we build our grid to tap into the potential resources available to us.
"We need a transmission grid, not only to enable us to transmit wind power to different counties but also to create jobs in these counties."
(NS/CD)
