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Irish Times
2 days ago
- Business
- Irish Times
Data centres could consume as much electricity as two million Irish homes by 2030, report predicts
Data centres in Ireland are projected to consume the same amount of electricity as two million homes by 2030 due to their accelerating demands and use of AI, a new report has suggested. The report by energy analysts Wood Mackenzie, in collaboration with the energy company Pinergy, concludes that by 2050, electricity demand will grow by two thirds, reaching 59 terawatt hours (TWh). This will be driven in the short term by data centre needs. Data centres are projected to consume 8.6TWh of electricity by 2030 due to their increasing demands and use of AI. 'This energy consumption is equivalent to powering two million homes, placing significant strain on the grid. However, as the grid capacity increases and electrification of heat and transport intensifies, the share of total power demand for data centres is expected to fall to 16 per cent by 2050,' adds the report published on Wednesday. READ MORE According to figures from the Central Statistics Office last year, data centres accounted for 21 per cent of total metered electricity consumption in 2023, compared with 18 per cent for urban households and 10 per cent for rural homes. The report by energy analysts Wood Mackenzie, in collaboration with the energy company Pinergy, says Ireland could become a net exporter of electricity as early as 2030, enabled by offshore wind and new interconnectors. Ireland's energy transition 'is unstoppable but its success hinges on renewables and the rapid expansion of electrification, especially in transport and heating'. 'In the long term, electricity demand growth will be fuelled by changing consumer behaviour towards low-carbon choices, particularly through EV adoption and electrification of heating systems in residential and commercial buildings,' it says. As Ireland works to reduce reliance on fossil fuels, the report says the country must shift to a system powered by low-carbon energy sources to progress towards legally-binding net zero emissions 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 planned €3.5 billion investment under the revised National Development Plan, earmarked for Ireland's grid infrastructure was critical in providing necessary infrastructure, he said. 'A successful energy transition will not only reduce our carbon emissions and protect our environment, but it will also create new jobs, boost our economy and enhance our energy security,' Mr Gunnell added. Renewables are on track 'but at risk following delays to capacity buildout', the report finds. It forecasts a contribution of 80 per cent of generated electricity from wind and solar by 2030, climbing to 93 per cent by 2050, with wind alone accounting for 77 per cent. This will be enabled by a forecasted 56 per cent increase in onshore wind and a 166 per cent rise in solar power compared to current levels. Ireland, however, is projected to fall 4 gigawatts (GW) short of its 5GW offshore wind target by 2030 'as projects suffer delays and cancellations'. EV adoption is on course to meet 2025 goals but falling short of 2030 targets by 35 per cent. Wood Mackenzie says the adoption rate must be accelerated by 54 per cent to meet 2030 targets. Heat pump adoption is 68 per cent behind 2030 targets – equivalent to 461,000 units – and lagging other European countries. Globally, geopolitical turmoil is creating headwinds for the energy transition, said Lindsey Entwistle, senior analyst at Wood Mackenzie, with rising costs and uncertainty across energy supply chains. 'Domestically, the sluggish adoption of critical technologies such as EVs and heat pumps risks delaying the [Irish] transition over the next decade.' The report calls for accelerated grid infrastructure upgrades, deploying the latest energy storage solutions for flexible power supply and streamlining permits to unlock the full potential of renewables. To support variable renewables coming onto the grid, 4.7GW of storage should be installed by 2030, it adds, more than doubling capacity in the next five years to support peak power demand and reduce curtailment. 'Without a robust and adaptable grid, Ireland cannot grow its economy and effectively integrate the increasing volumes of renewable energy that will power the country's future,' Mr Gunnell added. 'The domestic economy is currently very vulnerable due to issues with the national grid, with demand set to grow significantly for electricity... Ireland's energy grid is ageing and needs significant resources, urgent investment and deliverable actions to meet demands and opportunities that come with the energy transition.' Increased renewables will not happen, the report says, without 'addressing supply chain instability, port infrastructure limitations and planning uncertainty in getting offshore wind projects back on track'.
Irish Examiner
2 days ago
- Business
- Irish Examiner
Energy transition at a crossroads as data centres to use 20% of power by 2030
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
