What the CRU’s new connection policy means for energy flexibility in Ireland

The CRU’s (Commission for Regulation of Utilities) new Large Energy Users Connection Policy is a clear signal of where Ireland’s electricity system is heading.

Electricity demand, driven largely by data centres, is growing faster than new grid infrastructure and generation can be delivered. Data centres already account for over one fifth of national electricity demand, with this share expected to rise significantly over the coming decade. 

Rather than restricting growth outright, the CRU has reset expectations around the role large energy users are expected to play in the power system.

Under the new framework, data centres are no longer treated as passive consumers of electricity. Instead, they are expected to actively support the system through:

• Contribution to security of supply
• Support for renewable integration
• Participation in electricity markets
• Delivery of system flexibility, alongside generation and storage 

In practical terms, the policy introduces clear, measurable requirements for new data centre connections or applications for additional capacity. Data centres above the minimum threshold (greater than 1 MW) will be required to meet at least 80% of their annual electricity demand with additional renewable electricity generated in Ireland, with a defined transition period to achieve this target.

Taken together, these measures help address wider concerns about the impact of data centre growth on Ireland’s electricity system, while supporting security of supply and the integration of renewable generation.

This represents a structural shift in how large energy users are viewed within Ireland’s electricity system.

The CRU explicitly recognises that a secure, low-carbon power system relies on a combination of:

• Generation
• Storage
• Demand response and flexibility
• Network capacity 

As Ireland moves towards much higher levels of renewable generation, flexibility becomes essential to managing variability, reducing curtailment and maintaining system stability.

Well-designed demand response and flexibility can enable large energy users to:

• Respond to periods of system stress and local network constraints
• Reduce exposure to curtailment and connection risk
• Participate in wholesale and flexibility markets
• Align operations with a renewables-led electricity system

Rather than being a last-resort measure, flexibility is increasingly recognised as a core system capability.

Delivering flexibility at scale requires more than individual assets acting alone. It depends on the ability to aggregate, optimise and dispatch flexible demand, generation and storage in response to real-time system and market signals.

Aggregators, such as Enel X, play a critical role by bringing together flexible assets, managing market participation, and ensuring performance when the system needs support.

We already work with data centres and other large energy users across Ireland to:

• Aggregate flexible assets into market-ready portfolios
• Enable participation in demand response, capacity and other flexibility markets
• Optimise when and how assets respond based on system conditions
• Support customers in aligning operational flexibility with grid and renewable requirements

As expectations on large energy users evolve, aggregation and flexibility management will be central to enabling participation while reducing operational and connection risk.

For a practical example of this approach in action, see our Digital Realty case study.

The message from the CRU is clear:

• The future grid will reward those who can respond and adapt, not just consume
• Large energy users are becoming active system partners, not just demand sources
• Flexibility is moving from optional to essential

For data centres this policy marks a clear shift in role and responsibility, and a significant opportunity for those prepared to engage with a more dynamic, flexible energy system.

Talk to us to find out how Enel X works with data centres and other large energy users to deliver flexibility and demand response that support both business outcomes and the wider power system.