More Data Centres could be attracted to Mayo if private companies get go ahead to operate their own power lines
The Government’s Private Wires Policy Statement, announced by the Department of Climate, Energy and the Environment in July, will allow private companies to build and operate their own electricity lines.
Currently, only ESB can own and operate lines that bring electricity from a generator to a customer. Under the new policy, generators such as wind farms could connect directly to nearby factories or data centres without using the national grid.
The Commission for Regulation of Utilities (CRU) will oversee private wire applications.
The new policy is expected to spark interest in County Mayo from companies looking for strong wind resources near relatively cheap land.
Mayo Data Hub Ltd has already been granted planning permission from Mayo County Council to build a data centre in Killala, signalling the scale of potential investment in the region.
Independent councillor Harry Barrett has warned that communities must not be bypassed in the process: “When the private wires policy comes to pass, we have to generate serious community benefit from these private corporations,” he said ahead of this month’s council meeting.
Cllr Barrett is tabling a motion that calls for action in three areas from the council.
First, a full review of Mayo’s existing community benefit scheme; second, direct engagement with energy developers and the CRU to increase contributions from operators in the county; and third, the preparation of a strategic plan to respond to the new Private Wires Policy.
As part of that plan, Cllr Barrett wants to ensure that any new private wire development will not bypass Mayo communities. He has stated that any new infrastructure must be subject to local consent and contribute directly to community benefit funds.
His motion comes as news that the Meals on Wheels services in three locations in Mayo are under severe pressure and are scaling back due to rising costs. As well, the CRU has warned that the number of households in energy arrears could rise sharply this winter.
“We have to reengineer the community benefit scheme situation in this county. We have to levy more charges on these entities, both public and private,” Cllr Barrett said, “So that we at least have enough money to run our Meals on Wheels operations in Mayo.”
“We have to revitalise and review our community benefit in the county, and we have to plan for this new private wires policy,” he added, arguing for a fair allocation of resources.
The private wires bill policy would allow for any corporation to bypass the grid. However Cllr Barrett noted that in 2022, EirGrid announced a de facto halt on the development of new data centre connections in Dublin until 2028.
This, combined with the recent planning approval for a data centre in Killala, could indicate an opportunity for more data companies to move into Mayo, where land is cheaper and there is an international data cable available.
The America-Europe Connect (AEC-1) was connected in Killala Bay in 2015. There is currently a second cable, the America-Europe Connect 2 (AEC-2), that is looking for permission to connect in Clew Bay.
“You're going to have a situation where they are going to be located where the land is cheap and they're close to data cables,” warned Cllr Barrett, “In North Mayo there’s going to be a big push for data centres, to be close to the data cable coming in from the Atlantic.”
“All I'm saying is that, if these private entities are coming in, they have to pay a fair amount of community benefit. “If [they] can increase their charges for electricity, Mayo County Council should have every right to seriously review and increase all charges on their community benefit scheme.”
He added: “You can't have Meals on Wheels struggling in this county when you have that sort of wealth being generated off our coast and off our windfarms.”
Cllr Barrett is calling on Mayo County Council to push for national regulations requiring private wire operators to contribute to local benefit funds. He has requested a six-month report outlining recommendations to strengthen the county’s Community Benefit Scheme.
This article has been funded by the Local Democracy Reporting Scheme.