Dáil Éireann Debate, Tuesday - 15 September 2020
184. Deputy Denis Naughten asked the Minister for Climate Action and Communication Networks the measures being put in place to ensure that the projected additional €9 billion cost to the electricity sector by 2027 of data centres is fully borne by data centre developers; and if he will make a statement on the matter. [23776/20]
View answerGovernment policy in relation to data centres is led by the Tánaiste and Minister for Business, Enterprise and Innovation. The Government Statement on the role of data centres in Ireland's Enterprise Strategy published in 2018 recognised that a plan-led approach is needed to develop a range of measures to promote regional options for data centre investment, minimising the need for additional grid infrastructure.
While data centres have until recently accounted for less than 2% of Ireland’s total electricity demand, EirGrid, in their Generation Capacity Statement 2020-2029, project that demand from data centres could account for 27% of all demand by 2029. Significant increases in volumes of generation capacity, including from renewable energy sources, will be required to meet Ireland’s electrification objectives and demand from heat pumps, electric vehicles and data centres. The Climate Action Plan sets out a number of actions to ensure that data centres are accommodated in a sustainable manner.
All large energy users, including data centres, are subject to the same charging rules. These rules are determined by the Commission for Regulation of Utilities (CRU) Ireland’s independent energy regulator. In July Eirgrid published an updated Data Centre Connection Offer Process and Policy. It is also currently undertaking a “Vision 2030” study across the three dimensions of electricity networks, power system operation, and electricity markets with the aim of developing an integrated all-island vision of the 2030 power system and electricity market.
Corporate power purchasing of renewable energy by large energy users that is unsubsidised by the state will also be critical to supplying data centre demand, as will ensuring that large demand connections are regionally balanced to minimise grid reinforcements and the costs to consumers. The Climate Action Plan includes a target for 2030 to meet 15% of electricity demand by renewable sources contracted under corporate power purchase agreements, with the data centre sector, the first to execute these in Ireland.
The Climate Action Plan also provides that the Industrial Development Agency (IDA) will use its new strategy for 2020 to 2024 to fully integrate decarbonisation objectives across its portfolio of clients and other relevant stakeholders. Building on the 2018 Government Policy Statement, the new IDA Strategy will seek to ensure new large-scale enterprise investments in Ireland, including factors such as location and power purchase agreement opportunities, are aligned with the build-out of the grid to maximise renewable sources.
