Lawyers at Eversheds Sutherland say that the recent refusal of planning permission for a Google Ireland data centre shows the importance of early engagement with PPAs (power-purchase agreements).

South Dublin County Council (SDCC) refused Google permission for a proposed data-centre expansion at Grange Castle Business Park in south Dublin.

The proposed centre was set to be the third phase of the Google Ireland data-centre campus at Grange Castle.

In a note on the firm’s website, the Eversheds Sutherland lawyers say that the refusal was partly due to a lack of clarity provided by Google Ireland on its engagement with PPAs in Ireland.

PPAs are long-term contracts under which an organisation agrees to buy some or all of its electricity directly from a renewable-energy generator.

‘Evidence of engagement’

In its decision, the council also referred to the existing insufficient capacity in the electricity network, the lack of significant on-site renewable energy to power the proposed development, and the lack of a connection to the surrounding district-heating network.

In its application Google Ireland stated that the onsite solar-energy system would provide 20% of the total required energy for the data centre.

The Eversheds Sutherland lawyers state that the required development-plan objective is that the site will be, as far as possible, 100% powered by renewable energy.

“Where this objective cannot be met, the applicant must provide evidence of engagement with PPAs in Ireland. Therefore, lack of significant on-site renewable energy isn’t a reason for refusal on its own,” they write, adding that Google Ireland sought to rely on an existing 14-year PPA for 58 megawatts of new-to-the grid capacity from a permitted solar farm.

Eversheds Sutherland says that the local authority’s decision in this case indicates that data-centre applicants cannot rely on engagement with PPAs in Ireland as a general concept.

They add that, if a 100% renewable-energy source cannot be achieved, applicants must show “concrete evidence of engagement with PPAs for each development as distinct consideration”.

Similar decision appealed

The lawyers point out that another data-centre developer was refused permission on similar grounds last year, but successfully appealed to An Bord Pleanála after providing additional evidence on engagement with PPAs.

“One would expect Google Ireland to similarly follow suit,” they add.

“The planning authority’s decision brings into sharp focus the benefit of early engagement with potential PPA providers in circumstances where certain development plans require data centres to demonstrate evidence of clear engagement with PPAs,” the lawyers conclude.