Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

Under the Climate Action Plan 2023, the Government has committed to a new demand-side strategy for electricity and gas being put in place. The Commission for Regulation of Utilities, CRU, commenced work in this area by publishing a call for evidence and consultation paper in June 2023. The closing date has now passed. The CRU is currently analysing all responses received. In addition to formal consultation, officials in my Department regularly engage with relevant stakeholders, particularly in the context of the energy demand strategy currently being conducted by the CRU. I have been informed by the CRU that it expects that the demand-side strategy will be delivered by the first quarter of 2024, with the aim of 20% to 30% of electricity demand to be flexible by 2030, thereby facilitating active participation by citizens and businesses in the energy market.

Large energy users, LEUs, will be expected to make up a higher proportional contribution to the target as they are making up a high proportion of the increase in electricity demand. A review of the gas and electricity connection policies for new LEUs is being carried out to ensure any new connections are not causing energy security challenges and are in line with our sectoral emission ceilings. Demand-side flexibility will be crucial to fully utilise the ambitious renewable generation that is being developed. LEUs are important stakeholders in our decarbonisation and renewable energy ambitions. My officials regularly engage with them as part of a wider collaboration between industry, system operators, regulators and the Government. It is only by working together that we can achieve our climate goals and optimise the use of renewable generation here in Ireland.

It is important to note that connections to the electricity grid are dealt with by EirGrid on a case-by-case basis, in line with the assessment criteria set out by the CRU in November 2021 and available capacity. I am informed by EirGrid that the particular data centres mentioned in the question are part of the ramp-up of an existing EirGrid connection agreement that predates the November 2021 data centre connection policy decision by the CRU. The addition of this new demand is therefore expected and has already been taken into consideration in the expected growth figures in the generation capacity statement.

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