{"id":243358,"date":"2026-01-14T02:13:08","date_gmt":"2026-01-14T02:13:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/243358\/"},"modified":"2026-01-14T02:13:08","modified_gmt":"2026-01-14T02:13:08","slug":"cabinet-approves-energy-plan-in-bid-to-attract-investment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/243358\/","title":{"rendered":"Cabinet approves energy plan in bid to attract investment"},"content":{"rendered":"<p>A new strategy has been approved by the Cabinet aimed at enabling the further development of energy intensive facilities, including data centres.<\/p>\n<p>The Large Energy Action Plan (LEAP) is designed to attract more investment in Ireland from large energy users, which also include the semiconductors and pharmaceuticals sectors.<\/p>\n<p>It contains 17 actions to be implemented over the next five years to address what the Government said are existing barriers to such centres and plants.<\/p>\n<p>The plan&#8217;s publication comes following the lifting of an effective moratorium on new data centre connections.<\/p>\n<p>The restriction was in place since late 2021, while the Commission for the Regulation of Utilities (CRU) reviewed its policy on large energy users amid energy consumption concerns.<\/p>\n<p>Last month, the CRU ruled that data centres could be built where they meet at least 80% of their annual energy demand through new renewable electricity sources.<\/p>\n<p>Under the rules, the projects will be allowed a six-year &#8220;glide path&#8221; for renewables to be developed and start generating.<\/p>\n<p>Data centres accounted for 22% of electricity usage in Ireland in 2024, up from just 5% in 2015.<\/p>\n<p>It is estimated the consumption level will grow to almost a third of the national electricity demand by 2030.<\/p>\n<p>The Minister for Enterprise, Tourism and Employment said the approach set out in the LEAP plan &#8220;will enable regions across Ireland to attract investment in the next generation of strategic industry, promoting long-term economic development and providing further employment across the regions&#8221;.<\/p>\n<p>Peter Burke said the data centres already employ around 21,000 people who manage and operate the facilities, which he said underpin over 180,000 jobs in the tech sector.<\/p>\n<p>Core to the strategy is the location of new large energy demands near renewable energy sources.<\/p>\n<p><img decoding=\"async\" alt=\"Ministers Peter Burke and Darragh O'Brien speaking at Govt Buildings\" src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/01\/0023bce8-614.jpg\"\/><br \/>\nMinisters Peter Burke and Darragh O&#8217;Brien speaking at Government Buildings today<\/p>\n<p>The plan also includes identifying so-called green energy parks, where for example, data centres would be co-located with renewable electricity generation, such as offshore wind, so they do not act as a drain on the national grid.<\/p>\n<p>There is a focus in the plan on developing such projects in regional locations, where renewable energy capacity exists.<\/p>\n<p>Data centres on the east coast &#8211; where there is currently a concentration of such facilities &#8211; would be permitted when further energy sources come on stream.<\/p>\n<p>Mr Burke said a number of green energy parks are planned and he said there are two that are &#8220;currently going to embark upon the planning process and they are going to be very significant&#8221;.<\/p>\n<p>He said about 50% of capacity from data centre activity &#8220;is taking up power in the greater Dublin area&#8221;.<\/p>\n<p>&#8220;So, capacity is very limited over that greater Dublin area over the next period of time. That&#8217;s why we have to set out an investment framework, a policy whereby we can direct activity to, because there are parts where there is capacity, but we&#8217;re also saying we&#8217;re not going to diminish that capacity. You have to bring your energy to the table.&#8221;<\/p>\n<p>The Minister for Climate, Energy and the Environment said a strategic approach to the development of an energy intensive industry in Ireland &#8220;will drive further innovation and investment in our renewable energy sector over coming decades&#8221;.<\/p>\n<p>Darragh O\u2019Brien said future industrial development &#8220;will be aligned with Ireland\u2019s continued green transition, robust energy security, infrastructure delivery, and affordability of energy for households and businesses throughout the country&#8221;.<\/p>\n<p>Minister O\u2019Brien insisted the plan is &#8220;consistent&#8221; with the Government\u2019s climate objectives.<\/p>\n<p>&#8220;If anything, it will accelerate the delivery of our renewable energy production and our renewable energy capacity,&#8221; he added.<\/p>\n<p>He said the CRU\u2019s policy decision requires additional renewable sources, &#8220;not those renewable sources that are already in place, and not those renewable sources that are already contracted&#8221;.<\/p>\n<p>&#8220;So, if anything, it will accelerate the delivery of our renewable energy production and our renewable energy capacity.&#8221;<\/p>\n<p>There has been a mixed reaction to the move.<\/p>\n<p>The chairman of Digital Infrastructure Ireland has given a broad welcome to what he described as &#8220;a positive step&#8221;.<\/p>\n<p>Maurice Mortell said the industry has been waiting four years since the moratorium &#8220;for a positive decision by Government&#8221;.<\/p>\n<p>He said during that period, Ireland lost out on significant investments.<\/p>\n<p>&#8220;We were unable to offer any new connections onto the grid, so as a result, we&#8217;ve lost billions of euro of investment, particularly around AI infrastructure, which has been announced in other European jurisdictions, the Nordics, Eastern Europe and down in the Mediterranean.&#8221;<\/p>\n<p>Mr Mortell said the decision provides businesses with the opportunity &#8220;to make some informed investment decisions about what the future holds for infrastructure in Ireland&#8221;.<\/p>\n<p>&#8220;At least now there&#8217;s a roadmap to making those investments and giving those companies the opportunity to make informed investment decisions,&#8221; he added.<\/p>\n<p>On the requirement for the facilities to have their own renewable electricity generation, the DII chairman said all the companies are &#8220;really committed to a sustainable future, and I think as part of that, the six-year roadmap into 80% renewables is easily achievable&#8221;.<\/p>\n<p>The chief executive of Friends of the Earth said the LEAP plan &#8220;risks prioritising the interests of the data centre industry at the expense of households, existing businesses, and Ireland\u2019s climate obligations&#8221;.<\/p>\n<p>Deirdre Duffy said renewables must be used to decarbonise existing homes and industries, &#8220;not to fuel unchecked expansion of the data centre industry&#8221;.<\/p>\n<p>&#8220;We urgently need policies that prioritise decarbonisation and public benefit, rather than offering yet more incentives to a single sector,&#8221; she added.<\/p>\n<p>Ms Duffy said Friends of the Earth is calling for &#8220;immediate clarity that households will not foot the bill for the infrastructure and incentives to support green energy parks for data centres&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"A new strategy has been approved by the Cabinet aimed at enabling the further development of energy intensive&hellip;\n","protected":false},"author":2,"featured_media":63194,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":["post-243358","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/243358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=243358"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/243358\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/63194"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=243358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=243358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=243358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}