EirGrid analysis examines the balance between electricity demand and supply over 10 years

Irish homeowners have been issued a warning over the “potential challenges” facing the country’s electricity supply, amid an increasing number of data centres.

In its All-Island Resource Adequacy Assessment 2026–2035, EirGrid warned of “an increasing tightness between supply and demand”.

It added that there may be a “minor reduction” in electricity supply over the next few years.

It believes that older electricity plants leaving the market, combined with “delayed growth” in the new technology sector will lead to “increased challenges” over the next two years.

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EirGrid highlighted that factors such as the weather and economic activity are hard to predict and may lead to significant challenges for the grid.

It also cited the number of houses that are due to be built, particularly following the publication of the Government’s latest housing plan.

As well as that, the report contains a section on the potential impact of the number of data centres being developed across the country.

It describes the connection of data centres as a “key driver for electricity demand” in Ireland.

It is believed that the demand for electricity from data centres will continue to rise, as their operators look to increase their output.

“Almost all this extra load is contracted in the greater Dublin region,” EirGrid stated.

It also cited a direction from the Commission for Regulation of Utilities (CRU), which set out a number of requirements for the development of data centres.

The direction aimed to “address risks in relation to security of electricity supply” and “potential impacts on national renewable energy targets and carbon emissions”.

In its concluding statement, EirGrid addressed the challenges facing Ireland’s electricity grid and outlined the steps needed to address them.

The report states: “Over the next few years, the assessment indicates a potentially challenging outlook in Ireland across the study horizon.

“The electricity industry will have to find new ways to meet the increasing need for energy without relying mainly on burning fossil fuels.

“Looking out to 2030 and beyond, electricity demand is set to continue to increase as consumers use electricity in new ways, with slower but sustained growth then out to 2035.”

It emphasised the importance of working with the Government in developing new environmental policies.

“New government policies are expected to help guide us away from fossil fuels toward alternative heating methods, such as electric heat pumps, and cleaner modes of transport, such as electric vehicles.

“This changing demand and generation supply landscape will require coordinated management of both the volume and type of new capacity, alongside new ways of managing increasing demand to ensure security of supply.”

EirGrid added that it would continue to engage with the Department of Climate, Energy and the Environment, the CRU and other relevant stakeholders on the issues at hand.

The full report can be accessed here.