Oireachtas Joint and Select Committees

Tuesday, 6 July 2021

Joint Oireachtas Committee on Climate Action

Reduction of Carbon Emissions of 51% by 2030: Discussion (Resumed)

Photo of Lynn BoylanLynn Boylan (Sinn Fein) | Oireachtas source

I will follow on with regard to the data centres and the research done by the ESRI that shows domestic consumers are cross-subsidising the increase in demand for renewable electricity to satisfy the demand of data centres. I am particularly interested to hear from the CRU how the public service obligation, PSO, charge is levied. At present, it is levied on residential consumers, commercial consumers and large industrial consumers according to their contribution to peak demand. The more the sector contributes to peak demand, the higher the portion of PSO they pay. This is letting data centres off the hook because they have a massive steady demand that does not contribute to peak demand. Would the CRU be open to looking at alternatives that help prevent households subsidising data centres? As I said, the ESRI has outlined a scenario if various PSO groups were levied according to their average demand. Each sector would be responsible for paying for only that proportion of renewable electricity to which they give rise and there would be no cross-subsidisation. Alternatively, the PSO could be recouped on a charge for each unit. Is the CRU looking at how the PSO is levied at present? It is quite regressive and is not fair.

I also seek clarification on how much of the demand is accounted for by data centres. We hear mixed messages on this. We have heard from EirGrid that 100% of the demand will come from data centres and not from heat and transport. It is important for us to get clarity on this. Is this the case? Or is it what the CRU is saying, which is that it is a mix of data centres, heat and transport?

As for the microgeneration scheme, the witnesses said in their statement the CRU wants to ensure equity between consumer groups. We know the preferred model chosen by the Minister, Deputy Eamon Ryan, which was put out to public consultation, scored zero out of five on equity. This is according to the analysis commissioned by the Minister. It seems the chosen model already has built-in structural inequity. I am interested to hear from the CRU how it would ensure equity and protect vulnerable customers.

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