Oireachtas Joint and Select Committees

Tuesday, 22 March 2022

Joint Oireachtas Committee on Climate Action

Energy - Ambition and Challenge: Discussion (Resumed)

Dr. Paddy Finn:

The industry has been largely disappointed with the level of participation from data centres, which present a substantial resource. They have considerable back-up uninterruptible power supply, UPS, systems, battery systems and generation, which is diesel but can be run on hydro-treated vegetable oil, a 10% carbon alternative to diesel with a ten-year shelf life. Unfortunately, the incentives the sector needs in order to participate are not reflected in the incentives that exist. The sector is very ESG-focused and there is no accountable carbon credit associated with providing these services from demand response.

If we provide DS3 services from demand response or storage systems, we avoid inefficient power plants being on line, spinning and ready to be used. We are avoiding that carbon. Having that acknowledged in a carbon credit would encourage that industry to participate. There have been a number of studies by UPS providers into that sector that have highlighted the ability of those systems to simultaneously provide security to data centres while providing these services to secure the electricity grid. The incentives are not there to encourage data centre operators to participate. A key incentive would be to link the availability of connection agreements to a commitment to future participation in providing services to the electricity system.