Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237929 
Year of Publication: 
2020
Series/Report no.: 
ESRI Working Paper No. 657
Publisher: 
The Economic and Social Research Institute (ESRI), Dublin
Abstract: 
We investigate the power system implications of the anticipated expansion in electricity demand by datacentres. We perform a joint optimisation of Generation and Transmission Expansion Planning considering uncertainty in future datacentre growth under various climate policies. Datacentre expansion imposes significant extra costs on the power system, even under the cheapest policy option. A renewable energy target is more costly than a technology-neutral carbon reduction policy, and the divergence in costs increases non-linearly in electricity demand. Moreover, a carbon reduction policy is more robust to uncertainties in projected demand than a renewable policy. High renewable targets crowd out other low-carbon options such as Carbon Capture and Sequestration. The results suggest that energy policy should be reviewed to focus on technology-neutral carbon reduction policies.
Subjects: 
Datacentres
generation expansion planning
transmission expansion planning
climate policy
renewable energy
Document Type: 
Working Paper

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