Jerry Buttimer (Cork South-Central, Fine Gael)

I thank Deputy Burke for raising this very important matter. He is right to highlight the relationship between data centres and electricity demand, which is a global challenge. There is the additional demand for energy by data centres and the need to ensure we are competitive. I am taking this matter on behalf of the Minister for Climate, Energy and the Environment.

I will first set out the work this Government is doing on private wires, which is the policy area that will allow for demand users to connect directly to generators, and I will then set out the work we are undertaking in respect of data centres.

The current legal position in Ireland is that, other than in limited circumstances, only the ESB can own an electricity distribution or transmission system and, as such, the supply of electricity from generation site to demand user takes place on the ESB-owned national electricity grid. Deputy Burke may be interested to know that this position has its roots back to the early years of the State and the establishment of the ESB in 1927. Following its establishment, the ESB set about creating a standardised national electricity network and have owned what we now know as our national electricity grid ever since.

The current electricity market and environment is very different now, with a liberalised and interconnected market in operation. As the Irish energy sector evolves further with a move towards renewables and a zero-carbon economy, there are opportunities to alter the environment in which electricity supply takes place. Private wires provide one such opportunity and, on a basic level, refer to private individuals or undertakings running their own electricity cables in order to transfer electricity from one site to another.

Having received Government approval on 4 July, the Department published a set of guiding principles for the development of a policy on private wires. The principles, while not making immediate changes, are to guide any changes which are to come and provide guidance to the public and industry as to the direction of travel in respect of this key area while reiterating the central role the national electricity grid will continue to play in our electricity system.

Developing a private wires policy is of importance to this Government and an action was included in the programme for Government to expedite the delivery of this policy. It is the Minister's intention to bring a policy document on private wires to Cabinet next month. The private wires policy will, among other things, aim to unlock private sector resources to build new electricity infrastructure by expanding the rights of private undertakings to connect supply directly with demand. The intention is that private wires will accelerate investment in new electricity infrastructure, including renewable generation and storage, in a manner consistent with the guiding principles of the private wires policy, thereby increasing the availability of power within the wider electricity system. An example of a private wire which may be seen in the future is where a manufacturing plant builds a private connection directly to a new renewable generator. Once introduced, this policy will require primary legislation, along with increased powers and staffing for the Commission for Regulation of Utilities, which this Government will move to implement as a priority.

While the Deputy has asked about data centres, it is worth noting that the private wires policy will be broader than just data centres. Data centres, while playing an important role in our economic prosperity, are just an aspect of many businesses, both indigenous and foreign, based in Ireland.

As part of developing a private wires policy, the Department undertook a detailed public consultation during 2023, the results of which were published along with the wider policy principles in 2024. As part of the public consultation, the views of numerous stakeholders representing various parts of the economy, including data centres, were sought and considered by officials.

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