As Ireland’s economy has developed and our population has surged in recent years, demand for electricity has increased significantly, putting a strain on our national grid. The situation is set to become even more challenging in the years ahead. EirGrid forecasts Irish electricity demand will increase by around 45 per cent by 2034, with peak demand set to rise by 24 per cent.
Is there a case for doing more with what is already available to overcome power grid constraints, rather than waiting for additional capacity to come online, which could be some way off?
“Absolutely,” says Justin Brown, chief executive of Power Capital. “Optimising existing grid assets through smart technologies, flexible connections, and improved forecasting can deliver meaningful gains in the short term. We don’t need to wait for new infrastructure to start improving the system.”
While debate around energy efficiency often focuses on the domestic side and what consumers can do, the reality is that if we wish to move the dial quickly, this is best done at the industrial user level.
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A small percentage of electricity users consume a large proportion of the power on the grid and while that was mainly carbon intensive industry in previous years, today’s high demand users typically come from sectors such as pharmaceuticals and IT. The biggest demand on the network comes from data centres, which are forecast to use 27 per cent of all electricity on the grid before the end of this decade.
At present, EirGrid has no say on where high-demand users locate. As a regulated utility, it points out that it is obliged to connect customers to the grid wherever they choose, regardless of existing demand for power in the area.
The problem here is that most existing and proposed high-demand users wish to locate on the east coast which is putting pressure on the local demand for electricity, and on existing grid infrastructure in this area. In contrast, most developers of new renewable electricity want to locate in remote areas of the country where the grid is weaker.
EirGrid has proposed that new high-demand users locate closer to sources of clean power. To make the most of existing grid infrastructure, they would be sited near big towns and cities in the west and south of the country. This approach is based on the development of 4GW of new inland wind farms, 2GW of solar farms, and 2GW of offshore wind. It is estimated that it would lead to approximately 41 projects to upgrade or add to the grid at a cost of more than €500 million. Such a plan would require an alignment of Government policy and a clear commitment on the part of large electricity users to locate in optimal areas for the grid.
Getting industry to use more renewables in this way has multiple benefits. From the enterprise’s point of view, there are direct savings to be made in electricity procurement that is aligned with optimal use of the grid. In simple terms, when the wind blows, electricity is cheaper. There are also fewer C02 emissions and the benefits of more efficient consumption by industry flow through to everyone else who needs to take power from the grid.
“Industry can actually have a very large role as an off taker for surplus or excess renewable power that they can use flexibly in their own manufacturing facilities. This technology can be quite simple, involving very large tanks of hot water, like your immersion at home. You can then store hot water on your site and that means that you can have a constant load of heat as you need it,” says Enterprise Ireland’s Kevin Whoriskey.
Among the other initiatives that can help Ireland gain more efficiency are distributed energy resource management systems (DERMS), which allow real-time balancing of supply and demand. These systems enable aggregators and consumers to participate in grid services, support battery storage, and facilitate demand response. This digital layer of control reduces the need for conventional backup generation and enhances grid flexibility.
Localised solutions such as green microgrids and hybrid battery energy storage systems are being piloted to relieve pressure on the national grid. These systems can operate independently or in co-ordination with the main grid, providing resilience and reducing curtailment of renewable energy.
Notwithstanding the importance of industry, consumers also have a role to play in making more efficient use of what we already have. Initiatives such as the installation of smart meters to better monitor and control consumption, retrofitting insulation and installing more modern heating systems, especially in older fewer energy efficient homes, and the growing adoption of solar panels, all take pressure off the grid.
As Ireland navigates the complexities of its energy transition, embracing efficiency wherever we can, as well as increasing renewable production, may be the key to powering Ireland and achieving our climate goals without compromising reliability or affordability.
