Post: CRU firms up new data centre requirements

CRU firms up new data centre requirements

Ireland’s Commission for Utilities Regulation (CRU) has published a decision paper on the Large Energy Users connection policy that aims to set out a pathway for new data centre applications to the electricity system. Published on 12 December, the decision paper notes that Ireland’s total electricity demand has grown by 30% over the past 10 years, with data centre demand having greatly contributed to this level of growth. As electricity demand increases, the amount of electricity supply required from new and existing generation also increases. The significant increases in demand have coincided with a challenging environment for the delivery of grid infrastructure and new generation facilities.

To address risks in relation to security of supply and system constraints and promotes renewable energy targets, while minimising, where possible, the impact on national carbon emissions, new data centres with a Maximum Import Capacity (MIC) of 1MVA or above will be required to participate in the wholesale electricity market and provide new renewable and dispatchable electricity generation.

All data centres with MIC equal to or above the de-minimis level are required to meet at least 80% of their annual demand with additional renewable electricity generated in the Republic of Ireland.

Data centres with MIC above the de-minimis level but less than 10MVA are to be required to provide an “auto producer unit” that meets 100% of the demand site’s MIC on de-rated basis which participates in the wholesale electricity market. If compliant no separate requirement will be made for Mandatory Demand Curtailment (MDC).

Data centres with MIC equal to or greater than 10MVA are to be required to provide dispatchable onsite or proximate generation and/or storage capacity which matches their MIC (subject to derating requirements), with this generation being separately connected and metered, and required to participate in the wholesale electricity market. If compliant, there will be no separate requirement for MDC provisions. The connection cannot be operational or ramp up to its full MIC without achieving delivery of associated generation. The de-rated capacity of the onsite or proximate generation and/or storage must at a minimum meet the ramped or enduring MIC of the site for the duration of the connection and be operational.

System Operators are required to develop and publish an engagement and connection process for data centre connection applicants by 31 March 2026.

GridBeyond’s head of market strategy & risk James Tedd welcomes the paper:

“This paper provides much-needed clarity and direction for grid connections under Ireland’s evolving energy landscape. The policy aligns with our ongoing net zero work for new data centre developments, recognising the potential for market participating distributed assets on large demand sites and the role of power-matching with renewable PPAs, and sets a framework that supports both decarbonisation and energy system stability.

“But the practical implementation of this policy will require detailed clarity on how network constraints are assessed and managed. It will be important that solution-based approaches, like those we deploy internationally, can provide system operators the confidence to proceed with connections in a way that unlocks capacity while maintaining security of supply.”