European Data Center Hub Sees Disappointing Clean-Power Auction

(Bloomberg) -- Ireland’s latest auction procured 2,071 gigawatt-hours of clean-power projects, falling short of the minimum projections by a government that’s trying to keep pace with the growth of energy-thirsty data centers.

The country said in May this auction (PDF) would procure between 2,500 and 4,500 gigawatt-hours of renewables capacity, but a reduction in the maximum price it would support meant fewer participants. The successful projects will come online by 2030 when the nation plans to have 80% renewable electricity in its grid.

Still, they may not be enough to meet the goal, said Steph Unsworth, a senior associate for Aurora Energy Research. So far, the country is missing its target by 1,900 gigawatt-hours, she said.

Ireland’s electricity needs have soared since it started hosting the European bases of Microsoft Corp., Amazon, and Alphabet’s Google. Data centers consumed 21% of metered electricity last year, the government said.

That’s expected to jump to almost a third of consumption by 2030.

To manage energy constraints, the state-owned electricity operator imposed conditions for connecting new data centers, such as giving preference to those generating their own power.

The latest auction, the fourth in a series, procured about 1,334 megawatts of onshore wind and solar capacity, about double the amount from the previous round.

Related:Google Refused Permission to Build Data Center Near Dublin

Irish power prices remain among the highest in Europe, averaging close to €100 per megawatt-hour for the year – more than double the equivalent price in France, according to data from SEMO and Epex Spot SE.

Renewable sources of energy are helping reduce prices on the continent, but imports and fossil fuels still dominate the mix in Ireland.