Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I wish to respond on amendments Nos. 2, 7 and 22 together. Amendment No. 2 proposes the insertion of a paragraph (c) in section 3(1). As regards amendment No. 7, subsection (1) thereof suggests that a moratorium or pause be placed on data centres, while subsections (2), (3) and (4), along with amendment No. 22, relate to the implementation of risk analysis measures and reporting criteria. The management of connections to the electricity grid is a matter for the system operators, namely, EirGrid and ESB Networks, under the rules determined by the CRU, which is an independent statutory body solely accountable to the Oireachtas committee for the performance of its functions. It is important to note that restrictions on the connections of data centres have been introduced by the CRU based on whether a data centre occupant is in a constrained - that is, where energy demand is high - or unconstrained region of the electricity grid. The CRU will continue to monitor the effectiveness of these restrictions to protect security of supply in the coming years.

In addition, under the climate action plan, the Department of Enterprise Trade and Employment has committed to reviewing the 2018 Government statement on the role of data centres in Ireland's enterprise strategy to ensure alignment with Ireland's renewable energy targets, sectoral emissions ceilings and climate priorities. My Department is working with the Department of Enterprise, Trade and Employment to ensure there is a plan-led and regionally balanced approach to large developments such as data centres, taking into account congestion, existing grid availability and the opportunity to co-locate significant renewable energy opportunities. As transmission system operator, EirGrid is one of the stakeholders inputting to this review. The statement is due for publication in the coming months.

I will respond directly to some of the comments of Deputies, which are welcome. First, Deputy O'Rourke is correct in summarising the reasons we are purchasing this equipment in the way we are. As he stated, the capacity auctions did not deliver. Our system, including some of the regulators and grid operators I mentioned, did not correctly forecast and estimate the scale of power capacity needs we would have. There is also the increase in demand. Those are all components or reasons in the context of the tight electricity market. There are further reasons in terms of low system availability of some of the existing generation units, but those are the three underlying reasons that we have a tight market in electricity and are purchasing this equipment. The Deputy stated there is a need for a review of those various factors. That is exactly the reason I have asked Dermot McCarthy, a former Secretary General at the Department of the Taoiseach and one of the most eminent civil servants in the history of the State, with significant experience, to review and consider what lessons can be learned in the lead-up to us having to make purchases or engage in these contracts.

With regard to the issue of contracting data centres, a new data centre has not been approved since September 2020. That is because, coming into Government, we recognised there was a problem and that there cannot be an open door. As I have stated on numerous occasions in the House, every sector has to play its role in meeting our climate targets. If we had an unabated, unconstrained and no-holds-barred open door policy, that would be reckless and inappropriate. That is not what we are dong, however. There is a different thing in this State. I have seen it on several occasions in my lifetime in the House where the State has breached its contract or word. In the context of the data centres that have been approved within the system, we, as a State, cannot go back on our word. If we were to do so, it would probably increase the cost of electricity for all consumers because people would say the State cannot be trusted in its dealings as it agrees to something one moment but then changes its mind the next.

That is not how we operate.

I absolutely accept the comments from Deputies opposite that the expansion of data centres cannot be allowed to continue in a way that does not allow us to meet our climate targets. I know the data centre companies realise the situation will have to evolve. Critically, in my mind, that needs to be done by way of the provision of planning conditions that would see the use of district heating and the development by centres of their own renewable capacity, as Deputy Naughten suggested, which could, in the way it operates, help to stabilise, enhance and balance our system, as I stated earlier. That is the key thing we need to get right and it often needs to be done quite locally. The biggest constraint on our system is on the grid. If we can have data centres that support the grid in local areas, by varying their demand and using district heating and local renewable supplies, we then start to have a system that helps us to meet our climate targets and provide energy security, rather than counter to that.

Regarding the move to 70% or 80% renewables, Deputy Naughten is correct regarding EirGrid's analysis in its Shaping our Electricity Future roadmap. That was done, as I recall, on the basis of a commitment made by the Government on renewables. It was on that basis that it started on the timeline towards 70%. I have had detailed discussions with EirGrid on this and it is absolutely clear that by being able to achieve 70% renewables on our system, the physics and engineering capability in doing that will allow us to go to a higher target of 80%. It is doing further work on that. EirGrid is world-leading in running an isolated synchronised grid with very high levels of instantaneous renewable generation of up to 75%, which is unprecedented. No other country or grid operator is testing that. We are at the very edge of making it happen. Achieving it is often down to very technical and complex physics issues around how much inertia is in the system and the voltage and frequency stability. Everything EirGrid representatives say to me gives me confidence that in the timeline to 2030, it will be possible to go to the higher 80% target. It is continuing to learn, evolve and develop to make sure we achieve that.

Deputies opposite are correct that demand is just as important a part of the equation as supply. Yes, we need to move away from an unquestioning welcoming of demand. We must make sure demand gives us the capability we need and a balanced system. I do not believe that requires a moratorium on data centres. It requires working with the CRU and EirGrid to support what they are already doing in putting in place the sorts of standards that would require that industry to fit into our electricity plans rather than vice versa. That is what Government policy is and it is what is in place. On that basis, I am afraid I cannot accept these amendments.

See this speech in context