The National Offshore Wind Energy Association of Ireland was established in 2007 to promote the development of Ireland’s substantial offshore wind resource and to ensure that our island leads the way in building a sustainable, green economy.
Set up by Ireland’s five largest operators
Oriel Windfarm Limited
Codling Wind Park
Saorgas Energy Limited
Fuinneamh Sceirde Teo
Potential investment of over €8bn.
Capacity of over 2680MW from existing lease areas with potential for a further 4000MW.
NOW Ireland – Objectives
To position offshore wind in the Irish energy debate.
To Promote the implementation of a framework in Ireland which supports offshore wind deployment.
To raise awareness of the capacity of offshore wind.
To ensure that the National Grid is developed in a manner which facilitates the development of
To assist member companies to progress licenses and leases.
To harness existing lease potential.
To promote co – operation and best practice in industry.
Ireland has huge Offshore Wind Resources With more renewable energy generating capacity than required Strongest potential Very high potential High/medium potential Medium/low potential Simplified map based on Risø National Laboratory, Denmark, 1989
Overview of The Oriel Windfarm Project
An offshore wind farm in the North Irish Sea.
Wind farm Capacity:
Capacity up to 330 MW
Sufficient energy to provide for 250,000 homes
550 jobs during construction
60 long term high skill operation and maintenance jobs
Foreshore Lease expected
In Gate 3 - The current grid connection process
Identifying a Suitable Location for the Development of an Offshore Windfarm
An area in the North West Irish sea was selected as the most suitable location for the Oriel Windfarm Project due to its :
excellent wind resource
<30m water depths at >5km from shore
good seabed sediment conditions
shelter from high wave loads
low tidal streams
grid access North and South
Bathymetry: Red = 15m, Blue = 30m
Oriel Windfarm Project Timeline
Preliminary Feasibility Started 2001
Foreshore Licence Oct 2005 - Oct 2007
EIA Jan 2006 - Jan 2007
Application for Lease Feb 2007 - ??
Grid Connection Offer April 2011
Pre Construction planning
and procurement 2011 & 2012
Construction 2013 & 2014
Operation Commencing 2015
Drivers for Offshore Wind Development in Ireland
Danger of security of supply - At the end of a long pipeline
Fuel price risk - 92% of fuel imported
Renewable Energy Targets - 40% of electricity from renewables by 2020
Oil price today - $80 per barrel in the worst recession in 60 years
Economic imperative - using our natural resources
What is needed to kick start the industry
Barriers to Offshore Wind Development in Ireland
Issue Solution Status
Licensing Regime Strategic Infrastructure Act New Legislation drafted
Grid Connection Gate 3 Process for initial projects Grid Modelling underway.
Some Projects with consent outside the Gate
Refit 14c/kWh announced February 2008 Terms and Conditions
published September 09
Ireland will not meet its Government Policy target of 40% of electricity from renewables or our EU
Obligations by 2020 if we don’t have a significant element of offshore wind on the system by 2020.
Phase 1: Ireland’s RES-E 40% Target
The government has indicated in its NREAP that it will require 6,500 MW by 2020
WE have about 1,500 MW on line
We are building about 200 MW a year
Many of the onshore projects will not be built, due to planning and financial constraints.
The scale afforded by offshore wind power is needed to meet our renewable energy targets.
Any excess can be exported
How do we kick start the offshore wind industry in Ireland? Use a Two Phased Approach operating in tandem
Phase 2: Export Opportunity
Offshore projects, exceeding requirements
- Scale Exceeds Ireland’s current needs
What do we do?
EU Single Electricity Market
EU coordinated grid structure
EU price system for exporters
Export Opportunity – Energy
EU Renewables Directive issued June 2009 allows:
EU inter state trading.
Requires individual member states plan to reach targets by June 2010.
Affords a country like Ireland with its massive offshore wind and ocean resource the opportunity to export.
coordinated planning for the industry 20/30 years out
Mechanism for export then needs to be developed by stakeholders in Ireland with objective of:
Protecting the consumer
Encouraging export development
Export Opportunity - Supply Chain
There is over 100,000MW of offshore wind capacity under development in European waters.
The European Commission expects the creation of 2.8m jobs by 2020 from renewable energy industry in Europe.
Siemens have predicted that there will be €300bn invested in the offshore wind industry alone in the next 20 years.
The UK is planning the installation of 33,000MW of offshore wind generation capacity over the next 10 years.
Offshore Wind Projects in Development in Europe
Export Opportunity - Supply Chain
The biggest supply chain market for offshore wind in the world is 40 miles across the Irish Sea
Licensing and Grid Connection: UK versus Ireland 2010 2014 2020 Q1 ‘09 Q4 ‘08 Q4 ‘09 Q2 ‘08 25 GW installed Construction Consents & contracts ~7000 turbines Round 3 Awards Bid Submission OFTO Grid Strategy Crown Estate Round 3 Commences Offshore UK Offshore Ireland Gate 3 announced SEA commissioned SEA Complete 2011 ???? installed
Government support Mechanisms are an important factor for Potential Investment Support system Total revenue Level of support Duration of support (years) Market electricity price estimate (€/MWh) Grid connection paid by (€/MWh) (€/MWh) Belgium Hybrid green certificates 150 107 20 35-50 Both (variable) Germany Feed-in-Tariff 150 150 12+8 1 Not relevant Government Netherlands Likely: Tender plus premium payment Unknown Unknown Unknown, likely 15 35-50 Developer UK Green Certificates 123 -150 83 Asset lifetime 30-50 Developer (variable) Index linked (variable) Ireland Feed-in-Tariff, tax incentive 150 140 up to 2025 Not relevant Developer 1 In Germany, offshore wind producers receive a high FiT for the first 12 years, and after that a lower tariff, depending on project circumstances (water depth and distance to shore) 2 This level is valid for the normal support level of 1.5 ROC/MWh. For those projects that will receive 2 ROCs per MWh under the UK Governments economic stimulus measures, the level of support will be higher, at around 100 EUR/MWh, and total revenue will in that case end up around 150 EUR/MWh.
Building the North Sea Oil and Gas Industry
Industry started 1965
Challenge was en par with the moon landing
Large structures far from shore
Limited similar experience
Questionable economic returns
Well orchestrated effort by key stakeholders on all key areas:
Academics and researchers
Fiscal regime to incentivise investment:
First era had exceedingly generous terms
Accelerated tax depreciation of 72% of all investment
50% tax on net income
What one saw was:
National income far exceeds the government support
The technical and operational challenges were surmountable
Norway built a sought-after competence that is now exported internationally
Offshore wind seems to have several parallels
Europe’s gas infrastructure (1979)
Europe’s gas infrastructure(2000)
Offshore Wind presents a substantial opportunity for Ireland
To achieve energy security
To reduce carbon emissions
To develop a new export product
To grow a green economy
The Oriel Windfarm is going to be a major first step in achieving this
Generating 330MW 5% of Irelands annual electricity consumption
Avoiding 600,000 tonnes of carbon
Creating 610 jobs
Using our most abundant resource to secure a better future for Ireland
One consented wind farm will restart the offshore wind industry