Environmental group raises concerns over Bord na Móna and Amazon energy deal
An environmental group has questioned an energy deal between Bord na Móna and Amazon.
Friends of the Earth said the partnership raises significant questions about the state’s strategy to decarbonise the Irish energy system.
It said it was concerned as the deal suggests that new semi-state renewable energy projects are being developed mainly to respond to new data centre operations and to decarbonise their rapidly increasing electricity demand.
Data centres’ ballooning electricity demand poses risks both for our climate commitments and our electricity grid. Ireland is already an outlier in terms of data centre development with 18% of all our electricity consumed by data centres in 2022 and projections that this will be as much as 30% by 2030.
David Rossiter, Fossil Free Campaigner at Friends of the Earth, said: "It is concerning to see an Irish semi-state body, Bord na Móna, put forward energy plans purely to generate power for data centres. Friends of the Earth opposes any policy of reserving semi-state renewable developments purely for the benefit of the data centre industry.”
“This agreement involves an Amazon development at a future eco-energy park in the midlands and a power purchase agreement between Bord na Móna and Amazon for electricity from Derrinlough wind farm when it comes on stream. As such, the renewable energy produced by Derrinlough will be consumed by new energy demand from an Amazon data centre.”
“Our concern is that Bord na Mona’s planned renewable energy developments could have been used to cut existing fossil fuel use, thus actually decreasing Ireland’s polluting emissions, if it had not entered into this agreement reserving it for future Amazon demand. If this is the case, then we will effectively be running to stand still when it comes to protecting Irish households by cutting fossil fuels.”
Jerry MacEvilly, Head of Policy at Friends of the Earth, said: "We strongly support renewables rollout so Ireland can urgently reduce its dependence on fossil fuels and establish a sustainable energy system for all. It’s important that industry prioritizes renewable energy solutions. However, the projected increases in data centre electricity demand, and in any sense 'reserving' renewables for new data centres, raise fundamental questions about who or what our energy transition is for. Is it to take climate action and ensure a better environment for Irish communities or has it simply become one more tool in an FDI toolbox? The Government risks undermining support for new renewable energy projects and for climate action more broadly.”
"When it comes to decarbonising the industry sector, the reality is that the state has obligations to reduce its polluting emissions in accordance with national carbon budgets, not simply to facilitate renewables developments for industry. A policy which prevents runaway data centre development and ensures alignment with climate obligations is urgently needed.”
Bord na Móna has been asked for comment.