Oireachtas Joint and Select Committees
Tuesday, 30 August 2022
Joint Oireachtas Committee on Climate Action
Energy Supply and Security: Discussion
Ms Aoife MacEvilly:
On the questions on why we are here, I probably would respectfully disagree with some aspects of Mr. Foley’s opening statement, in that we know that growing data centre demand is a challenge. That has been clear from advice that we have received from those at EirGrid, including in letters they wrote to us, which lay behind our imposition of a new data centre direction in terms of connecting data centres. We think it is part of the challenge. In fact, the ability to accurately forecast this is also challenging for EirGrid. I possibly would not accept that we have had a consistent forecasting of the scale of the challenge that we face at the moment. That is an area that we too think is worth considering and is part of the review we are undertaking at the moment where we believe there are improvements that could be made in that process.
Overall, the challenges that we outlined in terms of that rapidly increasing demand proved that the data centre demand can be delivered more quickly than we have been able to deliver generation and transmission capacity to support it. As Mr. Foley said, if we had that delivery of the 500 MW, it would not be a challenge. However, we are in the position where there is delayed delivery. That is the reality. Those delays in the delivery of generation capacity are part of the challenge, as well as that challenge around the reliability of the existing fleet, which was also mentioned.
What we are doing about that is outlined very clearly in our programme of actions. More capacity needs to be brought on quickly. It will brought on through the capacity mechanism. We are working on options to improve the effectiveness of that capacity auction. We thank EirGrid for its contribution to that process. We look forward to its response not the consultation on how we can collectively do that. We are also working on the demand side because that is part of the solution as well.
In terms of this winter, Mr. Foley set that out very clearly. As he said, there are no cast-iron guarantees at the beginning of any of winter. This winter poses particular challenges. However, we have been working very effectively with EirGrid and other stakeholders to mitigate those challenges to the greatest extent. We will remain alert throughout this winter. As new issues arise, we will come forward with solutions to address them. In particular, that further consultation currently under way on enhanced demand-side flexibility also has the potential to help solve our challenges.
On measures for customers, in addition to the protection measures we outlined, we are willing to work with the Government on any measures, as we have, for instance with the electricity credit scheme that just finished. We are working to deliver on the public service obligation, PSO, levy rebate as well, which affords some small measure of relief. However, as the Minister, Deputy Eamon Ryan, outlined, the scale of this challenge is huge. It is beyond anything we have seen and will require a whole-of-government response. This is not something that any one set of measures on its own can address. We need to work collaboratively to support customers at this very difficult time.
No comments