The CRU indicates this policy is for the near-term, pending a longer-term approach which would consider spatial planning to facilitate coordinated delivery of utilities. Effective spatial planning underpins infrastructure delivery. When it comes to grid connection and demand response, these are areas supported by EU and domestic law regimes. Connection policy must be non-discriminatory, and there are prescribed circumstances in which connections may be refused.  In addition, demand response under EU law is an activity undertaken by final customers in response to market signals or the acceptance of their bid to sell demand reduction. 

The assessment criteria proposed by the CRU are framed as pre-conditional to the processing of a connection application. If they are not satisfied, the System Operator (“SO”) will terminate the connection application.

The proposed criteria are set out below.

Location

Applications would be assessed by reference to the “location of the data centre applicant with respect to whether they are within a constrained or unconstrained region of the electricity system”.

A format will be determined for publication by the SOs of regular information on available capacity. The CRU suggests that flexible connections under the IME Directive may be relevant. Under the Directive, a ‘flexible connection agreement’ is a set of agreed conditions for connecting electrical capacity to the grid that includes conditions to limit and control the electricity injection to and withdrawal from the grid.

Generation and/or Storage

Applications would be assessed by reference to the “ability of the data centre applicant to bring onsite or proximate dispatchable generation (and/or storage) capacity equivalent to or greater than their demand, that participates in wholesale market arrangements, is separately metered, which meets appropriate availability and other technical requirements as may be specified by the relevant SO, in order to support security of supply”. 

The generation would have to participate in the wholesale electricity market. It is suggested it would participate in the capacity market, and that storage will participate in the wholesale electricity market once provisions of Future Power Markets are in place.  Technologies for onsite or proximate generation would be required to be futureproofed to facilitate low/zero emissions (for example, being capable of using hydrogen).

The CRU states that data centres that meet this criterion will not have to meet the Mandatory Demand Curtailment requirements (which apply in a System Emergency State under load shedding policy).

Demand Flexibility

The CRU’s proposed decision is that there will be no additional requirement for demand flexibility provisions on all new data centre connections; however the SOs can require demand flexibility provisions from data centres on the local system as deemed necessary on a case-by-case basis. Notwithstanding this, the CRU’s proposed direction states that applications would be assessed by reference to the “ability of the data centre applicant to bring demand flexibility provisions if deemed necessary by the relevant SO.” 

Comments are invited from respondents on the proposed approach of providing the SOs with the ability to require demand flexibility from data centres on the local system as deemed necessary on a case-by-case basis.

Emissions

Applications would be assessed by reference to the “applicant’s commitment to self-report to SOs on the data centre site’s emissions and use of renewable energy on an annual basis”.  The CRU acknowledges that it does not have a statutory basis to require emissions reduction and offsetting measures as a condition to grid connection, but it is requiring data centres report to the System Operator annually on their renewable energy use and their emissions, and the SOs to annually publish summaries of this information.

Gas

The CRU does not propose to introduce any new decisions on connections to the gas network as part of its review process. Notably, the CRU has stated that the provisions under the Climate Action and Low Carbon Development Act 2015 and Gas Act 1976 do not provide a sufficient legal basis to the CRU for measures in relation to islanded data centre gas connections and emissions provisions.

Next Steps

Ireland is in need of clear pathways to infrastructure delivery and this proposed decision is an initial step in providing a pathway for data centre connections. For legal certainty and system cohesion, grid connection policy should always align with legal frameworks in Irish and EU law. In practical terms, the sector may wish to note the potential to be subject to both a requirement to provide dispatchable generation as well as demand flexibility. Further clarity on how this will be implemented should be sought from the CRU.