I want to thank the IPI for the invitation to deliver the closing address at your Autumn Conference and to compliment you on what has been a wide ranging and expertly informed discussion across the broad canvass of issues that are central to harnessing Ireland’s energy opportunity. I am also pleased to note that the SEAI, an agency funded through my Department, has been a sponsor of today’s proceedings.
When you look at the range of issues which featured for discussion today you get a real sense for the complexity involved in bringing developments in the energy sector through from project conception, to design, execution and final delivery. When you see the challenges we face as a nation in terms of our energy needs and the opportunities that exist for addressing our own needs and the needs of other countries as part of an interconnected European energy system, it reinforces the need to get all parts of the energy planning and development jigsaw right.
The benefits of reducing our dependency on imported fossil fuels and increasing our energy diversity have been well documented from both an environmental and financial perspective. The development of these resources also provides additional opportunities and benefits such as security of energy supply, job creation and economic growth, as well as the potential for Ireland to become an exporter of renewable energy.
As a Member State we have legally binding targets to meet 16% of our energy consumption by 2020 from renewable sources, a large component of which will be met by renewable electricity which will account for 40% of our electricity consumption by 2020. While these targets are challenging, we are making good progress.
Developers have made or are making decisions on their Gate 3 connection offers. The response has been very positive. Information from EirGrid and ESB Networks indicates that sufficient wind farms have accepted offers to connect to the grid to facilitate meeting the target of 40 per cent of electricity from renewable sources by 2020. The Gate 3 phase of group processing by EirGrid and ESB Networks has resulted in approximately 3,000 megawatts of wind generators accepting their offers to connect so far. Added to the current installed renewable generation and existing contracts for connection, Ireland is on track to meet European 2020 renewable energy targets.
While there is significant work ahead in delivering the required grid infrastructure and developing smart grid solutions, with major effort and commitment also required of wind farm developers to bring these projects to fruition, this is a very positive milestone. In addition to the above figures, there are already just over 2,000 megawatts of renewable generation connected to the power system in Ireland, mainly onshore wind farms. In the electricity sector, it has been estimated that between 3,500 and 4,000 megawatts of installed wind generation will be required to meet Ireland’s renewable targets, in addition to hydro generation, bio-energy, and renewable combined heat and power generators.
We are seeing the economic benefits. A recent survey of IWEA member companies shows that some 3,400 people are in full time employment in this sector. These existing job numbers will grow as we progress towards our legally binding 2020 targets.
Ireland has the capability to achieve its national targets for renewable electricity from onshore renewable generation alone, with capacity to spare. This means that there is potential for projects of scale onshore that are aimed at export markets. It also means that our offshore wind resource can be developed as an export opportunity. In this regard, work is progressing on signing an Inter-Governmental Agreement between Ireland and the United Kingdom in the coming months.
There are very clear and significant potential economic benefits arising from the export opportunity. Significant employment can be created. For example, employment creation arising from a 3 Gigawatt project would be expected to be in the order of 3,000 to 6,000 job years in the construction phase, with the actual number dependent on the construction schedule to 2020. NewEra advise me that there would be about €1 billion of construction spending on civil engineering works over 2 to 3 years. There would also be additional jobs created in the on-going maintenance of turbines over a 20-year operating life. Further employment opportunities would arise if turbines or components were manufactured in Ireland.
More generally, the shift towards renewable energy and related technologies promises to bring many benefits. There will be opportunities to develop new products across the information technology, remote communications and software sectors. In the near future, we may see Irish-designed products managing everything from control of energy in the home to management of wind farms and ensuring energy on the grid is optimised.
There would also be a flow of income to local economies in terms of rates, rent to land owners and local community funds. There are also potentially significant interconnection benefits, enhancing security of supply, allowing for increased intermittent wind generation and facilitating the operation of the single market.
There is of course another side to this and I want to revisit some of the issues raised by my colleague Minister Jan O’Sullivan this morning in relation to community engagement.
When I addressed the IWEA Conference last week I spoke in very clear terms about the need for developers to engage early and on an ongoing basis with communities on their concerns including potential amenity and environmental impacts of wind farm developments.
My comments were directed at the proposed export projects in the Midlands but the principle of open engagement with communities applies irrespective of the nature of the project. This is a clear principle of our planning system and is a central component of the “Government Policy Statement on the Strategic Importance of Transmission and Other Energy Infrastructure” published last year.
I should point out, incidentally, that while our focus today is on renewables projects, that Transmission is also very much to the fore in our minds. Several electricity transmission projects of national importance are currently in preparation for consideration by the planning authorities. Notably these include the 400 KV lines GridLink and GridWest and, most immediately, the North South interconnector which is so important for energy security on the island.
The 2012 Policy Statement also acknowledges the need for project developers to examine appropriate means of building community gain considerations into project planning and budgeting.
It is encouraging to see that the conference addressed these issues this morning and I am looking forward to being briefed on Kate Henderson’s presentation on “Communities, Wind Farms and Mediation in the UK”.
In July of this year, I announced that I am putting in place a clear national renewable energy export policy and development framework, which will guide An Bord Pleanála when considering any proposals of a significant scale for wind energy export projects. The proposed large–scale wind farms intending to export must await the putting in place of this framework which will be underpinned by a Strategic Environmental Assessment. The framework will be prepared over the coming year or so and will provide an opportunity for all stakeholders including local authorities, potential project developers and local communities to be consulted and have an input into the national policy for wind export. The process will provide an opportunity to integrate SEA and Appropriate Assessment under the Habitats Directive in developing the new national framework. The initial phase of public and stakeholder consultation on the framework will begin in the next few weeks. This will complement the work being advanced by Minister O’Sullivan on the review of the Wind Energy Guidelines which she outlined this morning.
Separately, I would like to inform the Conference that I will be shortly publishing the Offshore Renewable Energy Development Plan. The process of developing this plan began with the carrying out of a Strategic Environmental Assessment. Taking the findings of the Strategic Environmental Assessment, and the subsequent Appropriate Assessment, the OREDP seeks to form a link between three critical policy areas for Ireland, namely, renewable energy, the marine, and the growth potential of the green economy. In this way, it is intended that the OREDP will provide a tool to inform and coordinate policy and implementation across the energy, environment and economic areas, thus supporting the sustainable exploitation of Ireland’s offshore wind and ocean energy resources out to 2030.
To conclude, we have made very significant progress toward meeting our 40% 2020 target and are on the cusp of making export of renewable energy real with all its attendant economic benefits. However, this is only going to happen with community acceptance and involvement. In addition, the progression towards realising this export potential must be supported by ensuring that the enablers, including policy and planning certainty are implemented to ensure that the manner in which we harness this energy opportunity delivers in the long term interests of our State.
Chairman, I am glad to have had this
opportunity to talk to your conference. I very much value the role that your Institute, and indeed the planning profession at large, will undoubtedly play in explaining to the wider community the significance of the planning framework that underpins both transmission grid and renewable energy development. I expect that the coming year will be a busy one in terms of planning so that we really can harness Ireland’s very significant energy opportunity.
Thank you.