Energy transition at a crossroads as data centres to use 20% of power by 2030

Irish Examiner

16 hours ago

Ireland's energy transition is at a crossroads with data centres expected to account for 20% of all power by 2030, and major investment needed to cope with demand, a new report warns.
The report by Pinergy in collaboration with global consultancy Wood Mackenzie predicts that Irish electricity demand will grow by two thirds by 2050, with on-grid power generation climbing 16% by 2030, but says that current progress is insufficient to meet key energy targets.
The 'Energy Transition Outlook: Ireland' recommends that a wider shift to low-carbon energy sources is needed if Ireland is to meet legally binding net zero targets set for 2050.
"Ireland's energy transition is at a crossroads and we must invest in our future," said Pinergy chief executive Enda Gunnell. "We've set ambitious goals and commitments, but this report makes it clear we must move from aspiration to urgent, tangible action. The time for deliberation is over."
The report said that EV adoption is on course to meet 2025 goals but falls short of 2030 targets by 35%. In order to meet our EV targets, the report predicts Ireland needs to accelerate our adoption rate by 54%.
Heat pump adoption trails 2030 target by 461,000 units, 68% behind 2030 targets.
Data centres are projected to consume 8.6 TWh of electricity from the grid by 2030, accelerated by the demands and use of artificial intelligence. "This energy consumption is equivalent to powering two million homes, placing significant strain on the grid. As the grid capacity increases and the electrification of heat and transport intensifies, the share of total power demand for data centres is expected to fall to 16% by 2050."
Mr Gunnell welcomed the planned €3.5bn investment announced in the revised National Development Plan earmarked for Ireland's electricity grid infrastructure. "This is badly needed as getting grid connections, large and small can sometimes be slow. We want to see a dynamic agile grid that utilises technologies like AI to deliver a grid fit for the next century that builds upon the work of the last century. The investment announced last week is a great first step, but we may need to see more investment beyond the initial amount in NDP."
Ireland is projected to fall 4GW short of its 5GW offshore wind target by 2030 as projects suffer delays and cancellations.
"This decade is pivotal to the energy transition and results rather than ambition alone will be the measure of success,' said Lindsey Entwistle, senior analyst at Wood Mackenzie.
'Globally, geopolitical turmoil is creating headwinds for the energy transition. Costs have risen and uncertainty has increased across energy supply chains. Domestically, the sluggish adoption of critical technologies such as electric vehicles and heat pumps risks delaying the transition over the next decade.'
Pinergy supplies 10,000 business and 28,000 residential customers.
Mr Gunnell said Ireland's grid must be robust enough to deal with outside factors. "We need a grid which distributes electricity generated by renewables locally both on shore and offshore that ensures we as an island are not exposed to geo-political risks as we have seen since 2022."
"We need to invest in a mix of renewables that generate electricity across wind and solar but also hydro and renewable gases together with storage that ensures we have a balanced mix to ensure there are no outages. Some fossil fuels may n