Relying on wind energy in the short-term to generate electricity is "just Narnia", the head of business group IBEC has warned.
Danny McCoy was speaking as the European Union said it is working on "an emergency intervention" and structural reform of the electricity market.
Mr McCoy told The Hard Shoulder fossil fuels will have to form part of any energy transition.
"We'd be supportive of the LNG [Liquefied natural gas] model, in fact have been down through the years.
"We need to ensure that in going to this low transition, fossil fuels will form part of that transition.
"It is just Narnia to think that we - it's great to say there's great wind energy out in the Atlantic Ocean.
"We've lots of steps to go forward to actually get to that point.
"And that's why we need to keep the signals there for that long-term investment."
He said the invasion of Ukraine has led to a Russian 'premium'.
"We haven't ran out of gas, we just don't want to buy it from Putin.
"It's not a shortage of fossil fuels that we're experiencing globally, it's a decision that we've collectively taken... that we're going to collectively suffer as a result of that decision.
"It's worthwhile doing so to confront that tyranny, but it is a real cost.
"So the notion that people get away being left intact is just not feasible".
Mr McCoy added: "In the short-term, I think there is quite a fear that we will see some rationing over the winter".
'Capping energy costs'
While Duncan Graham, managing director of Retail Excellence Ireland, said the Government needs to offer retailers some support.
"Absolutely the big priority is energy costs and some form of capping of these energy costs.
"What we're seeing at the moment is people coming to us, who are looking at double the energy costs that they were paying this time last year.
"In some cases triple those costs, and they're wondering what to do.
"Should they stick with the wholesale rate, or should they now fix again?
"Really we need the Government to step in and provide some form of subsidy or some form of support when it comes to energy costs".
Speaking earlier on Monday, European Commission President Ursula von der Leyen outlined changes to the electricity market for member states.
"The era of Russian fossil fuels in Europe is coming to an end.
"And with freedom from blackmail will come greater power to defend global rules.
"That has to be our next strategic approach. Ending our dependency on Russian fossil fuels is only the first step.
"The skyrocketing electricity prices are now exposing, for different reasons, the limitations of our current electricity market design.
"It is no longer fit for purpose. That is why we, the Commission, are now working on an emergency intervention and a structural reform of the electricity market.
"We need a new market model for electricity that really functions and brings us back into balance", she added.
The skyrocketing electricity prices are now exposing the limitations of our electricity market design. It was developed for different circumstances.
We are working on an emergency intervention and a structural reform of the electricity market.
President @vonderleyen at #BSF2022 pic.twitter.com/WlrwulAobm— European Commission 🇪🇺 (@EU_Commission) August 29, 2022
