Investment in wind turbines could be substantially bolstered by an unlikely ally: data centres. A new report from consulting firm Baringa underscores this potential symbiosis, revealing that wind energy saved Ireland nearly €1 billion on gas for electricity generation in 2024. This significant saving was achieved as wind farms contributed 32% of Ireland’s electricity, reducing gas expenditure by €748 million and slashing carbon taxes by a further €268 million.
The report, part of Baringa’s annual “Cutting Carbon, Cutting Bills” series, highlights the pivotal role of wind energy in Ireland’s energy landscape. With over 5,000MW of onshore wind generation capacity installed, Ireland reached record levels of wind energy generation last year. However, Noel Cunniffe, CEO of Wind Energy Ireland, noted that 2024 was also marked by substantial wind power losses due to grid capacity challenges. This dichotomy underscores the urgent need for infrastructure upgrades to fully harness wind energy’s potential.
Data centres, which have faced development pauses in Dublin due to energy infrastructure concerns, could be a game-changer. Baringa’s research suggests that corporate power purchase agreements (PPAs) could derisk investments in offshore wind projects. Mark Turner, a partner at Baringa, emphasised that data centres can provide the revenue certainty needed to attract investment in offshore wind. Conversely, offshore wind can decarbonise Ireland’s data centre capacity, aligning with the country’s digitalisation goals.
The geographical distribution of wind energy production is also noteworthy. Cork led the country, contributing 11.7% of Ireland’s wind power, followed by Kerry, Offaly, Tipperary, and Galway. This regional diversity highlights the broad impact of wind energy on local economies and energy security.
Wind energy’s role is expected to grow, with offshore wind farms poised to support Ireland’s housing supply aims by providing necessary infrastructure support. The report highlighted that wind energy accounted for nearly a third of Ireland’s electricity production in January, emphasising its ongoing importance.
Cunniffe stressed the need for a resilient electricity grid to meet growing demand and secure a sustainable energy future. The focus must shift towards strengthening grid infrastructure, a vital investment for Ireland’s future energy security.
This news has far-reaching implications for the energy sector. Firstly, it showcases the potential for unconventional partnerships, such as those between wind farms and data centres, to drive investment and decarbonisation. Secondly, it highlights the economic benefits of wind energy, not just in terms of cost savings but also in reducing reliance on imported fossil fuels.
Moreover, the report underscores the need for robust infrastructure to support renewable energy growth. As Ireland experiences more severe weather events, a resilient grid becomes crucial. This necessity extends beyond Ireland, serving as a lesson for other countries aiming to integrate more renewable energy into their grids.
The potential for corporate PPAs to derisk investments in offshore wind projects opens new avenues for financing renewable energy. This model could attract more private sector involvement, accelerating the transition to clean energy.
Lastly, the regional distribution of wind energy production in Ireland suggests that renewable energy development can have broad economic benefits, stimulating local economies and creating jobs.
As the energy sector evolves, such insights will be instrumental in shaping policies and investments. The interplay between wind energy and data centres, the economic advantages, and the infrastructural requirements present a compelling narrative for the future of renewable energy. This report does more than just highlight the achievements of wind energy in Ireland; it provides a blueprint for how other countries can leverage similar strategies to drive their renewable energy agendas forward.
