"The Bright Road to Ireland’s
New Energy Future"
Caitríona Diviney
Irish Wind Energy Association
15 November 2013
Disclaimer
Every care and precaution is taken to ensure the accuracy of
the information provided herein but such information is
provided without warranties express, implied or otherwise
howsoever arising and IWEA to the fullest extent permitted by
law shall not be liable for any inaccuracies, errors, omissions
or misleading information contained herein
"The Bright Road to Ireland’s New Energy Future"
Agenda
• Introduction
• Wind Energy in Ireland
• Current Key Sector Areas of Focus
• Wind Energy – Working Locally
• The Road beyond 2020
• Conclusions
Irish Wind Energy Association
• Largest national network with members from across the
sector
–
–
–
–
–
–
–
–
–
–
Wind farm developers
Turbine manufacturers
Construction companies
Supply companies
Accountants
Insurance
Consultancy
Legal firms
Banks
Small local businesses
IWEA Aims
• IWEA believes that Ireland can be a world leader in renewable
energy
•
•
•
•
Reduce CO2 emissions
Create investment and jobs
Increase energy security
Create a thriving export industry
• IWEA is committed to responsible and
sensitive wind energy development.
• IWEA promotes the development of onshore
and offshore wind
• IWEA supports the development of other
renewables particularly marine energy
Key Facts about Energy and the EU
Mtoe
World Energy Demand is on the Rise
18 000
Rest of world
16 000
China
14 000
Rest of OECD
12 000
European Union
10 000
8 000
6 000
4 000
2 000
0
1990
1995
2000
2005
2010
2015
Background Information for the European Council, 4
February 2011
2020
2025
2030
2035
Source: IEA, World Energy Outlook 2010
Energy Powers our Society and
Economy
Background Information for the European Council, 4 February
2011
Source: Eurostat 2010
Dependence on Imports could Grow
« Business as usual » scenario based on 2009 figures
in %
2005
OIL
2008
2020
100
2030
2005
GAS
2008
2020
2030
94 %
93 %
80
82 %
84 %
83 %
76 %
60
62 %
58 %
40
20
Today, Europe imports more than half of the energy it uses. If nothing
changes, our dependence on fossil fuel imports will rise by 2030.
Background Information for the European
Council, 4 February 2011
Source: European Commission
The EU Depends on a Few Suppliers
EU imports of crude oil
EU imports of natural gas
Others
11%
Nigeria 4%
Russia
32%
Norway
15%
Russia
Algeria
15%
OPEC Countries
36%
40%
Kazahkhstan 5%
Azerbaijan 3%
Norway
30%
Mexico 2%
Others 7%
in % (2008, total = 12,958,133 TJ)
in % (2008, total = 561,46 Mt)
Background Information for the
European Council, 4 February 2011
10
Source: Eurostat 2010
Positive Outlook for Renewable
Electricity
Source: IEA, July 2013
Renewable Power Spreading
Out Everywhere
Wind Energy in Ireland
The Story so far
Meanwhile in Ireland…
Ireland’s economy
and society are
heavily dependent on
imported fossil fuels
Fossil Fuel prices
and supplies are
Volatile
Wind can reduce CO2 and
mitigate climate change
Ireland has a
substantial natural
energy resource
There is a market for
these resources at
home and overseas
Local energy
production stimulates
domestic economic
activity and growth
Ireland's 2020 Targets
Note: The Irish Government has decided that the 16% Energy Target to be
delivered by:
40% Renewable Electricity
+ 12% Renewable Heat +10% Renewable Transport
Resources & Capabilities
Wind Energy in Ireland: The Story so far
5% The percentage of Irish electricity that
came from renewable sources in 2005
50% At particular time
East-West Interconnector
intervals, wind has produced
enough power to meet 50%
of Irish electricity demand
The newly launched East-West
Interconnector connects the Irish &
UK Grids. The 500 MW
interconnector capacity equates to
enough electricity to power 300,000
homes. This paves the way for
Ireland to trade renewable energy
with the UK
18% The percentage of Irish electricity that
comes from renewable sources today.
3.6 million tonnes of CO2.
40% The 2020 target for renewable
electricity. To meet this, Ireland will have to
build 275MW per year between now and
2020.
The use of renewables in
Ireland in 2011 avoided
emissions of 3.6 million
tonnes of CO2
€74 Million Wind generation in
20 years old. Ireland’s oldest wind
farm at Bellacorick, Co Mayo
celebrated its 20th birthday in
October 2012. The wind farm
comprises of 21 wind turbines, with a
total installed capacity of 6.45 MW
2011 reduced Ireland’s wholesale
market cost of electricity by around
€74 million.
>3400 IWEA members employ
3407 full time employees in wind
energy as of September 2013
Wind Energy In Ireland : An Overview
• Irelands total capacity is 2,388.1MW as of end of June 2013
– ROI 1833.8MW
– NI 554.3MW
– Generated from 191 wind farms in 26 counties
(on the island of Ireland)
• 3,629 MW of Wind contracted and will be in the process of
connecting to the grid to meet 2020 targets
Wind Energy In Ireland : Delivered to Date
2500
2224
2025
2000
NI
ROI
1769
Installed MW
1574
1500
1239
954
1000
795
598
500
420
294
180
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Building a Sustainable Energy Future
2020 Buildout
+
I.
II.
III.
2030 Targets
Exporting Project/s
Offshore ???
€27M
€4.7Bn
Onshore Investment Pipeline for the next 3 years = €1.9BN
Irish Wind Energy
– Key Areas of Focus
Looking to the Future
– Key Areas of Focus
1. Connecting to the Grid
- System Integration
2. Financial Framework
- European Market Integration
- Additional Market Opportunities
3. Planning
- Social Acceptance
Focus for
Ireland
&
European
Wind Energy
1. Connecting to the Grid
• Limited Capacity Available
• “Gate” allocation system
• Significant work is required
to meet 2020 targets
• Challenging environment
for delivery of new
infrastructure
“I want to see Eirgrid do everything it reasonably can to secure community acceptance.
However the engagement between company and community must be reasonable and must be tempered
by what constitutes the public interest. However, no Government can walk away from its responsibility
to provide the country with a secure energy supply. Nor can any Government wantonly inflict
unnecessary costs on energy consumers to allay concerns that are not well founded”
Minister Rabbitte 12/11/13
System Integration
The DS3 Programme
- DELIVERING A SECURE, SUSTAINABLE ELECTRICITY SYSTEM
2. European Market Integration
• The EU is developing a Single European Market for
electricity (SEM), which Ireland will join in 2017
•
The aim is to allow electricity to be
traded freely across borders,
moving from where it is produced
to where it is needed.
•
All of Europe’s renewable
resources will be required to feed
into this pan-European grid. In the
future, Europe’s renewable energy
resources will have to be used to
supply renewable electricity, not
just on a national basis, but also to
customers throughout all of
Europe.
Within the EU’s SEM,
electricity will be traded on
an unrestricted basis
across national borders.
Significant Change Ahead
European Market involves trading at 4 different timeframes
Forwards
Market
Day Ahead
Market
Intraday
Market
Balancing
Market
Today the SEM in
Ireland involves gross
mandatory pool at day
ahead timeframe
© IWEA 2013
Irish Wind – Market Opportunities
Progress towards 2020 targets for Ireland and other nearby EU Member
States (2010 progress reports)
Opportunities for
Ireland to contribute
through exports and
cooperation
mechanisms
The UK Export Opportunity
• Ireland will comfortably meet its 40%,
mainly from onshore wind
• Ireland has a significant RES resource
that can not be consumed
domestically
UK population 12x Ireland
• UK has significant demand needs
-could need ~30GW from wind by
2020
• Up to 15GW onshore UK
• Remainder either offshore, or imported
(e.g. from Irish Sea & Irish Midlands)
• Distances similar, but imports from
Ireland cheaper than offshore
• Inter-Governmental trade agreement
UK land mass 3.5x Ireland
Wind Energy: The Economic Opportunity
Exporting - “Without cost to the Irish Consumer and to the benefit of the
economy"
Jobs
&
Investment
Investment
and “Boost”
to local
economies
Delivery of
Strategic
Infrastructure
ECONOMIC
OPPORTUNITY
Potential State
Monetisation
of green
credits
Ireland
“Home of
Green
Finance”
Market for
Non Gov
Target
Projects
3. Social Acceptance
• The current Planning Context is under consideration
• Update of the Irish Wind Farm Planning Guidelines
(2006) underway
- Update will focus on noise, separation distance
and shadow flicker.
- Draft due for consultation at the end of November
for an 8-10 week consultation.
Public Support for Wind
Community Engagement
I. Keep an open Mind
II. Seek out the facts
III. Make decisions based on Evidence
Need for new forms of engagement, dialogue and
collaboration
IWEA Facts Infographic’s
IWEA Wind Myths
IWEA Fact Sheets
22932
63
[No of Turbine installed
globally in 2012]
[Installed In Ireland
in 2012]
22750
[Avg No of Turbines Installed Globally
per year last 5 years]
101
[Avg No of Turbines Installed in Ireland
per year over last 5 Years]
IWEA Fact Video
IWEA Best Practice on Community
Engagement and Commitment
• IWEA Best Practice on Community Engagement
and Commitment now launched
• The most important step to a successful wind
energy project is to involve local communities,
answer their questions and ensure any myths
and misperceptions and tackled from as early as
possible
• At least €1000/MW in community commitment
contributions going forward highlighted as Best
Practice
Maintain transparent and frequent communication that
begins early and extends across all stakeholders
Irish Wind Energy – Working Locally
The Local Economic Benefits
“Investment and boost to local economies”
Clean, green,
competitive,
locally produced
energy.
Jobs
(Employment in
Construction,
and O&M)
Significant
Local Authority
Rates
Improved
infrastructure roads, reinforced
electrical
network
Sustainable
income
diversification for
landowners
Commercial Rates Contribution/Local Economy
A Journey from €44K to €11.5 Million
1992 < £44K
Rates
contribution
from
Wind Energy
2012
€11.5 Million
approx. per
Annum
1738MW
+2262MW
Reaching 2020
Targets
€27 Million
approx.
per Annum
The Economic Opportunity
“Employment boost to local economies”
2001/2
2012
2001/2
2012
Wind Generation in Galway
• Galway’s County Development Plan 2009‐2015 pointed out
that the County’s “wave and wind resources are among the
richest in Europe”
• Have a progressive 2020 Vision in place of:
– 500MW of electricity from wind energy
• Galway’s renewables leadership opportunity:
– Supportive communities
– A turbine manufacturer in Athenry
– Talent in place including here in The Ryan Institute
Galway can be Ireland’s renewable energy capital.
Economic Benefits to Galway – Investment
• Galway today boasts a generating capacity of 71.15 MW,
this represents an overall investment figure of €120m.
• This investment can grow to €850m if Galway reaches its
goal of 500MW (Enough power for 325,000 homes)
Economic Benefits to Galway – Rates
• Estimated local authority rates generated from windfarms
in Co. Galway equate to more than €480,000 per annum.
• Potential €3.4m annual Co.Galway rates windfall
if 2020 targets realised.
Wind Energy: Ireland's Opportunity
Local
economies
€11.5M –
€27M per
Annum
Investment
ROI for
2020
€3.8Bn
On-Shore
2020
Targets
Co2
Abatement
500Mt per
Annum
Community
Gain
€55M over
25 years for
2020 Project
Export
Industry
Delivery of
Strategic
Infrastructure
- Grid 25
World
Leader in
Integration
of Wind
Jobs
10,70030,000
Irish Wind Energy-An Industry in Numbers
Domestic Industry - 2020
1.
1.3M
[No of Homes that can be Powered
by wind]
3407
€70M
[Full Time Employed]
[Indicative Tax take from
existing workforce]
2.
€4.7Bn
€1Bn
€1.9Bn
[Investment Pipeline
over next 7 year]
[Investment in Labour
next 7 years]
[Investment Pipeline
over next 3 year]
3.
2.35
€11M-€27M
€55M
[Average Jobs per MW
Installation/Site Preparation]
[Commercial County
Council Rates Paid Per Annum]
[Potential Community Gain from
new projects to reach targets over 25 Years
Export
Industry
5GW
€>15BN
[Quantum that Ireland will seek to
Export to the UK]
[Total Investment potential
from Exporting]
€75M €20-€40M €>5M
[Saving to Irish &UK Consumer
annually – Delivery of
Interconnection]
[Local County Council
Commercial rates]
[Community Gain
per Annum]
Irish Wind Energy
– The Road beyond 2020
2030 framework for EU
climate change and
energy policies
• EU leaders plan to discuss 2030 Framework at their regular spring
summit in March 2014.
• Will build on the experience of, and lessons learnt from, the 2020
framework and identify where improvements can be made
• But will also look towards Roadmap for moving to a competitive low
carbon economy in 2050,
• Key questions
– What type, nature and level of climate and energy targets should be set
for 2030?
– How can coherence between different policy instruments be attained?
– How can the energy system best contribute to EU competitiveness?
– How can Member States' different capacities to act be taken into
account?
The Global New Energy Future
A View of Ireland’s Cumulative Capacity of
Onshore and Oshore Wind Installations to 2050
Source: SEAI Roadmap 2050
What does 2030 look like?
The European
Super Grid
Ireland’s Future Energy System
Components for Success
1. Resources:
3. The Enablers:
2. Talent:
Conclusions
There is a Bright Road to our New Energy Future
• Excellent resources and skills in Ireland
• Ambition to develop a significant
• indigenous industry
• Strong strategic policy framework
• Ability to deliver significant local and national benefits
• Essential to have Communities and Stakeholders with us if
we want to realise local and national ambition.
Changing energy patterns call for new forms
of engagement, dialogue and collaboration
Any Questions???
The “Sonnagh Old” Wind
Farm in East Galway
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