Oireachtas Joint and Select Committees

Tuesday, 9 May 2017

Joint Oireachtas Committee on Communications, Climate Action and Environment

Electricity Grid Development Strategy 2017 and Proposed Celtic Interconnector: EirGrid

7:00 pm

Photo of Michael McDowellMichael McDowell (Independent) | Oireachtas source

The scenario in the low carbon living graph shows data centres growing significantly, with total demand for electricity increasing by 60% by 2030 compared to today. Beside the graph is written that data centre connections would reach 1,950 MVA in 2030 and most of these would be based in Dublin.

There is a series of data centre applications in the pipeline, as I understand it, and under consideration. It seems that whatever view one takes, a large data centre can account for 6% to 8% of current electrical output as things stand. Who is actually deciding that Ireland needs extra data centres? Who is deciding we should have 20, ten or five data centres? Is EirGrid involved in a collaborative strategic plan with IDA Ireland? Does IDA Ireland want more data centres? As I understand data centres, a venture with 150 jobs, which may require a substantial investment of €1 billion, and require an increase of 6% to 8% of our electricity generation. Is this a price we want to pay for 150 jobs? If somebody said he or she had a plan to build a shoe factory, which will chew up 8% of electricity and asked for a grant, people might say it would have huge implications for data centres.

As I understand it, nobody has actually evolved a policy on this. I do not understand whether Ireland wants to have 20 or three extra data centres or five large data centres, but the implications for our national demand are colossal. EirGrid is a service organisation. It looks at inputs coming in from elsewhere, one of which is demand by data centres for power supply. Who decides, in terms of Ireland meeting its environmental targets for electricity consumption, the fundamental strategic decisions as EirGrid understands it?

Suppose I am a company such as Google, and I say I want to increase Irish data centres by building something massive, which will increase Irish electricity generation demand by 8%, who says to me it is not a very good idea and asks how it will be accommodated in our overall national strategy? There does not seem to be anybody who is taking responsibility and saying this is a sustainable plan, this number of data centres is something we can accommodate if we have rapid economic growth, and if we have all of these data centres we will have a massive demand and increase for electricity. The way I see it, nobody is stating he or she is making the decision for Ireland.

The reason I mention this is I believe Ireland has natural advantages as a data centre location. Our climate means it is cheaper to cool data centres, our geography means we are less likely to suffer an earthquake or landslide or be snowed in. We are attractive from this point of view. The real question is what is the attraction for us. If we look at EirGrid and the electricity producers, this is extra market, but what is the attraction? Do we have a plan as to how much of this market we want to locate in Ireland? It seems the employment advantages are fairly small but the energy and sustainable energy implications are very large. Nobody has ever been able to explain to me who is calling the shots on this. Does IDA Ireland, the Government, EirGrid or the electricity producers have a plan or is it a case of let us see what comes in, we will try to accommodate it, we will not make any strategic decisions, and then, in the planning process, An Bord Pleanála and all of the rest will just have to pick up the pieces? Is that what is going on?

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