Large Energy Users electricity emissions reporting framework

Background

In 2021, Ireland implemented the Climate Action and Low Carbon Development (Amendment) Act 2021, which legally binds the Republic of Ireland to achieve a 51% reduction in GHG emissions by 2030 and net zero emissions by 2050. The growth of demand from Large Energy Users (LEUs) and, in particular, data centres, poses a challenge to these emissions targets. By 2032, 30% of all electricity demand is expected to come from data centres and other new large energy users. 

Many Large Energy Users (LEUs) have corporate climate and sustainability objectives, regarding climate change mitigation, that are evolving from net annually averaged renewable energy or CO₂ emissions targets to more meaningful real time netted targets. These LEUs recognise that variable renewable electricity over- or under-production may result in lower than optimal avoided emissions. The evolving approach may lead to LEUs managing their grid electricity demand in a flexible manner resulting in beneficial grid services and more optimal emissions reductions. Regulation may encourage such progressive action by LEUs and measures should be considered that facilitate it. 

About the report

SEAI was tasked in the Climate Action Plan to “Develop an enhanced reporting framework and implementation plan for electricity emissions for LEUs to facilitate reduced carbon intensity across their demand profile and promote grid efficiency”.

With guidance from relevant state bodies and feedback from industry stakeholders, this reporting framework plan “LEU electricity emissions reporting framework - Recommendations for design and implementation” is now available to download

The report sets out high-level recommendations for how the framework could be structured. The decision to implement the scheme in the manner recommended (or not), whether to adopt, and how to phase, each of the different elements of the scheme will be made by the Department of the Environment, Climate and Communication (DECC). They will take into account the recommendations and challenges highlighted in the report, along with other stakeholder engagement.

This SEAI report was informed by the prior SEAI commissioned study “Corporate PPA policy in Ireland” and further develops upon key recommendations of that study and also  formed part of the evidence underpinning the CRU proposed decision “Large Energy Users connection policy”.

Report structure

The report is structured as follows; 

• Project context and approach
• EU Guarantee of Origin
• Potential drawbacks
• Benefits of a new framework
• Policy and international review
• High level design
• Options assessment
• Recommendations