Offaly MEP says planning bottlenecks threaten economic progress

PLANNING and regulatory bottlenecks are now threatening Ireland’s wider economic competitiveness and are affecting Offaly projects and major plans by Offaly companies, MEP Barry Cowen has said.

Mr Cowen was commenting following the revelation that Amazon has cancelled a €300 million data centre server rack manufacturing facility in Dublin which would have created about 500 high-tech jobs.

Amazon made the decision after being told by ESB Networks that a grid connection could not be provided within its required timeframe, despite the project already having secured planning permission and support from both the Government and IDA Ireland.

Mr Cowen, Member of the European Parliament for Ireland's Midlands North-West constituency, said he has been warning for years that - overseen by ESB and EirGrid – this country’s electricity infrastructure, capacity auction system and planning regime are not fit for purpose.

He expressed frustration that serious investment opportunities continue to be lost due to structural failures and short-term thinking – including debates that falsely pit housing needs against industrial investment like data centres.

“We should not be choosing between homes and jobs – we can and must deliver both,” MEP Cowen said. “What’s missing is a functioning system, not ambition. The Midlands, for example, has energy parks with grid capacity ready to host high-energy projects. The issue is delivery – not demand.”

While welcoming the €3.5 billion committed to the grid under the National Development Plan (NDP), Mr Cowen warned it risks becoming “money down the drain” unless tied to a comprehensive package of reforms.

These include fast-tracked planning for energy infrastructure, clear timelines and targets for connection delivery, and a fundamental overhaul of the auction system to ensure new entrants can compete on a level playing field.

The MEP pointed to the High Court ruling in favour of Kilshane Energy Ltd and Coolpowra FlexGen Ltd as a clear signal that flaws in the system are now being exposed in court.

He also cited the long-delayed Banagher meat processing facility – first approved in 2019 – as evidence that planning and regulatory bottlenecks are now threatening Ireland’s wider economic competitiveness.

In relation to the Amazon decision Mr Cowen said: “This isn’t just another lost opportunity – this is the latest symptom of a broken system. The electricity infrastructure is outdated, the capacity auction system is dysfunctional and planning delays are pushing major employers elsewhere. The result? 500 fewer jobs, €300 million in lost investment and, perhaps most damaging, a growing reputation risk for Ireland.”

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He added: “Even the courts have now shone a light on the opaque and inconsistent auction process that has locked out competition and limited new generation. Meanwhile, €2 billion has been spent on costly temporary generation. That is the definition of a false economy.

“Grid investment must be tied to delivery – not just funding. That means clear targets, fast-tracked planning for energy infrastructure, and a fundamental redesign of the auction system to ensure new entrants and fair competition. Without that, we’ll continue to lose out.”

Coolpowra FlexGen Ltd is a Tullamore-based company run by Offaly man Nigel Reams which aims to develop three new gas-fired generator units in Co Galway with a 25 km gas pipeline and a 400 kV substation. Also, a related company had a nine-unit battery storage project on an adjacent site.

Coolpowra won a High Court action last year after being excluded by Eirgrid and the Commission for Regulation of Utilities (CRU) from a capacity auction.

That decision effectively meant the company would not be in the running for the delivery of new energy from October 1, 2028 to September 30, 2029.

EirGrid said the company's proposal was not feasible within the timeframe and also cited issues with the transmission grid.

Coolpowra contested EirGrid's reasons for refusal and the court found it unsatisfactory that certain emails sent by the energy company were not taken into account when the final exclusion decision was made. The High Court quashed the decision.

Separately, Bord na Mona last year announced that Amazon Web Services will locate a data centre in its Midlands Eco Energy Park which will be located on the Offaly/Westmeath boundary.