Post: CRU invites views on data centre connections

CRU invites views on data centre connections

The Commission for Regulation of Utilities (CRU) has released a proposed decision paper on the Large Energy Users (LEU) connection policy, which aims to balance economic growth with decarbonisation. The policy aims to address the escalating energy demands of LEUs, particularly data centres, which have significantly impacted the nation’s electricity infrastructure.

Ireland is committed to reducing emissions by 51% by 2030, compared to 2018 levels. The government’s policy aims to facilitate both digitalisation and decarbonisation. But the paper, issued on 18 February, notes that, while data centres have become integral to Ireland’s economy, their energy consumption has risen from 5% of the national total in 2015 to 21% in 2023. Projections indicate that, based on existing contracts, data centres could account for 30% of Ireland’s electricity demand by 2030, predominantly concentrated around Dublin, intensifying pressure on the local electricity network.

The CRU’s proposed policy outlines a framework for integrating large energy consumers into the electricity and gas networks while minimising the impact on carbon emissions and considering the capacity of grid infrastructure.

The main elements of the Commission’s proposed decisions are that:

• data centres connecting to the electricity network will be required to provide dispatchable (i.e. available when it is needed by the system) generation or storage onsite or nearby, which will participate in the electricity market
• the ramping up of a new data centre’s demand will be linked to the delivery of the required generation capacity
• the System Operators (SO) should continue to take into account the location of any data centre connection applications and associated generation capacity in respect of whether it is in a constrained or unconstrained region of the electricity network
• the SO will be required to publish regular information on existing and future grid network capacity to accommodate connections on the electricity network and to provide insight to new data centres and other developers
• data centres will be required to self-report to the SO annually in relation to their use of renewable energy and their sites’ emissions. A summary of these reports will be published

The CRU invites feedback on the proposals with view sought by 4 April.

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Client Spotlight: Keppel DC REIT

Keppel DCR REIT (Ireland) is a global company that manages and operates assets, focusing on data centers. The business has chosen GridBeyond to deliver a BESS (Battery Energy Storage System) at two of their sites, and secure a CPPA (Corporate Power Purchase Agreement) contract from an Irish wind farm that will help drive revenue.  

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