Dáil Éireann Debate, Tuesday - 15 June 2021
180. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the way he plans to deal with the growing energy needs of data centres with Eirgrid’s generation capacity statement of 2020 to 2029 projection that demand from data centres could account for 27% of all demand in Ireland by 2029; and if he will make a statement on the matter. [30776/21]
View answerThe Government Statement on the Role of Data Centres in Ireland's Enterprise Strategy (2018) acknowledges the role of data centres as part of the digital and communications infrastructure for many sectors of our economy. They have become increasingly important in the context of remote working during the Covid-19 pandemic and also support high-quality jobs. The Statement also noted that data centres pose considerable challenges to the future planning and operation of Ireland’s power system. In 2020, data centres represented approximately 11% of the total electricity used in Ireland. EirGrid, in their Generation Capacity Statement 2020-2029, project that demand from data centres could account for 27% of all demand by 2029. EirGrid has recently launched a public consultation, 'Shaping our Electricity Future', which considers potential geographic restrictions and incentives for large demand users such as data centres to locate in areas of the network closer to where electricity is generated. In addition, the Commission for Regulation of Utilities issued a consultation last week on a proposed direction to the system operators regarding data centre grid connections.
Furthermore, my Department is carrying out a review of the security of energy supply of Ireland’s electricity and natural gas systems which is focusing on the period to 2030 in the context of ensuring a sustainable pathway to net zero emissions by 2050. The review will consider the impact of increased demand, including from the data centre sector, and will identify and appraise policy options that could be implemented to ensure security of electricity supply.
There is significant opportunity through innovation, renewable generation, demand flexibility and storage to drive a clean digital economy to underpin our economic success into the future, and data centres must play their part in supporting our net zero climate ambitions.
My Department is evaluating policies to encourage the development of renewable energy projects by the data centre sector to meet their own demand and to contribute to the target set out in the Climate Action Plan of meeting 15% of electricity demand through Corporate Power Purchase Agreements (CPPAs) by 2030. The Sustainable Energy Authority of Ireland launched a public consultation on policy options for meeting the target, which closed on 14 April 2021. Based on the consultation feedback and other considerations, a recommendations paper on a roadmap for CPPAs will be developed later in 2021.
