Oireachtas Joint and Select Committees

Wednesday, 15 November 2023

Joint Oireachtas Committee on Climate Action

Future Licences and Contracts to Connect Data Centres to the Gas Network: Discussion

Mr. John Melvin:

If we come back to talk about storage at this committee, as Mr. Gannon said, it is very important to understand the difference between the really short duration batteries that provide one service, which is not typically about storing carbon-free electricity and is about responding very quickly to changes in the market, and then the longer duration storage batteries. The Department consultation is on longer duration storage, how much is needed, does it need to be supported and how might it be supported. That is expected early next year.

In terms of market interactions and how batteries interact with the energy market, if there is on-site storage in a data centre, that is just demand and it is not impacted by any wholesale market barriers. The industry is currently consulting and there is a trading and settlement code modifications panel where the industry is consulting with itself to find the right ways to change the rules to remove barriers to participation of batteries in the energy market. In particular, where they need to fill themselves up and recharge themselves, it is to automate and systematise that. That is a process that the industry is going through to decide on the right modification, and the modification will be put into the systems and will take effect. That is under way within the industry at the minute.

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