Oireachtas Joint and Select Committees

Tuesday, 30 January 2024

Joint Oireachtas Committee on Climate Action

General Oversight of EirGrid: Discussion

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats) | Oireachtas source

We have heard concerns in respect of getting renewable energies on the grid. All present would agree there have been delays in that regard and we may not be on target to meet the 2030 obligations. If we continue to facilitate and connect new data centres, or existing data centres that are not using their agreed and contracted capacity, but do not match that with electricity generation from renewables, is there a risk that we are signing a cheque that the grid and energy generation capacity may not be able to meet in 2030?

That is where concerns are arising. EirGrid stated that 2% demand increase is not exponential, but the growth in demand specifically from data centres is very high compared with that from the rest of the economy. We are looking at 30% by 2032, compared with 4% in Europe. A significant proportion of electricity demand is coming from that sector. Is there a risk that if we cannot meet that demand through renewable energy, that is where problems will occur and we will need to have derogations and facilitate temporary generation in order to meet not only the current demand, but also what it could technically ramp up to?

As regards policy, data centre policy was updated in the past year, but my sense is that EirGrid still believes that is not what is needed to manage and facilitate the grid. What would it like to have seen in that policy that is not there? The policy currently focuses specifically on the Dublin area and data centres have to produce their own energy. EirGrid keeps speaking about net zero demand, however. I think that is the phrase it uses in its document. Its view is that even if these data centres come on board, there will be a net zero demand from it. That is not net zero emissions or net zero carbon, however; EirGrid specifically refers to net zero demand. It is saying that those data centres will not take demand from the grid and that as they will be able to generate their own energy, it is not EirGrid's problem, as such. In the wider context, however, it might be EirGrid's problem in the context of emissions targets. That is a long and convoluted question. I hope the witnesses can get some sense from it.

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