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<ul><li>Green Economy Expo 2010 </li></ul><ul><li>Brian Britton – NOW Ireland </li></ul><ul><li>21 st  May 2010 </li></ul>...
NOW Ireland  <ul><li>The National Offshore Wind Energy Association of Ireland was established in 2007 to promote the devel...
NOW Ireland – Objectives <ul><li>To position offshore wind in the Irish energy debate. </li></ul><ul><li>To Promote the im...
Ireland has huge Offshore  Wind Resources With more renewable energy  generating capacity than required   Strongest potent...
Overview of The Oriel Windfarm Project <ul><li>An offshore wind farm in the North Irish Sea. </li></ul><ul><li>Wind farm C...
Identifying a Suitable Location for the Development  of an Offshore Windfarm <ul><li>An area in the North West Irish sea w...
Oriel Windfarm Project Timeline <ul><li>Preliminary Feasibility  Started 2001 </li></ul><ul><li>Foreshore Licence  Oct 200...
<ul><li>Drivers for Offshore Wind Development in Ireland </li></ul><ul><li>Danger of security of supply  -  At the end of ...
<ul><li>Barriers to Offshore Wind Development in Ireland </li></ul><ul><li>Issue Solution  Status </li></ul><ul><li>Licens...
<ul><li>Phase 1: Ireland’s RES-E 40% Target </li></ul><ul><li>The government has indicated in its NREAP that it will requi...
Export Opportunity – Energy <ul><li>EU Renewables Directive issued June 2009 allows: </li></ul><ul><ul><li>EU inter state ...
Export Opportunity - Supply Chain <ul><li>There is over 100,000MW of offshore wind capacity under development in European ...
Export Opportunity - Supply Chain <ul><li>The biggest supply chain market for offshore wind in the world is 40 miles acros...
  Licensing and Grid Connection: UK versus Ireland 2010 2014 2020 Q1 ‘09 Q4 ‘08 Q4 ‘09 Q2 ‘08 25 GW installed Construction...
Government support Mechanisms are an important  factor for Potential Investment    Support system  Total revenue Level of ...
Building the North Sea Oil and Gas Industry <ul><li>Industry started 1965 </li></ul><ul><li>Challenge was en par with the ...
Europe’s gas infrastructure (1979)
Europe’s gas infrastructure(2000)
Source EWEA
Source EWEA
Source EWEA
Source EWEA
Source EWEA
Conclusion <ul><li>Offshore Wind presents a substantial opportunity for Ireland  </li></ul><ul><ul><li>To achieve energy s...
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Brian britton greenexpo

  1. 1. <ul><li>Green Economy Expo 2010 </li></ul><ul><li>Brian Britton – NOW Ireland </li></ul><ul><li>21 st May 2010 </li></ul>Offshore Wind – Securing Ireland’s Energy Future
  2. 2. NOW Ireland <ul><li>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. </li></ul><ul><li>Set up by Ireland’s five largest operators </li></ul><ul><ul><li>Oriel Windfarm Limited </li></ul></ul><ul><ul><li>Airtricity </li></ul></ul><ul><ul><li>Codling Wind Park </li></ul></ul><ul><ul><li>Saorgas Energy Limited </li></ul></ul><ul><ul><li>Fuinneamh Sceirde Teo </li></ul></ul><ul><li>Potential investment of over €8bn. </li></ul><ul><li>Capacity of over 2680MW from existing lease areas with potential for a further 4000MW. </li></ul><ul><li> </li></ul>
  3. 3. NOW Ireland – Objectives <ul><li>To position offshore wind in the Irish energy debate. </li></ul><ul><li>To Promote the implementation of a framework in Ireland which supports offshore wind deployment. </li></ul><ul><li>To raise awareness of the capacity of offshore wind. </li></ul><ul><li>To ensure that the National Grid is developed in a manner which facilitates the development of </li></ul><ul><li>offshore wind. </li></ul><ul><li>To assist member companies to progress licenses and leases. </li></ul><ul><li>To harness existing lease potential. </li></ul><ul><li>To promote co – operation and best practice in industry. </li></ul><ul><li> </li></ul>
  4. 4. 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
  5. 5. Overview of The Oriel Windfarm Project <ul><li>An offshore wind farm in the North Irish Sea. </li></ul><ul><li>Wind farm Capacity: </li></ul><ul><ul><li>Capacity up to 330 MW </li></ul></ul><ul><ul><li>55 Turbines </li></ul></ul><ul><ul><li>Sufficient energy to provide for 250,000 homes </li></ul></ul><ul><ul><li>550 jobs during construction </li></ul></ul><ul><ul><li>60 long term high skill operation and maintenance jobs </li></ul></ul><ul><li>Foreshore Lease expected </li></ul><ul><li>In Gate 3 - The current grid connection process </li></ul>
  6. 6. Identifying a Suitable Location for the Development of an Offshore Windfarm <ul><li>An area in the North West Irish sea was selected as the most suitable location for the Oriel Windfarm Project due to its : </li></ul><ul><li>excellent wind resource </li></ul><ul><li><30m water depths at >5km from shore </li></ul><ul><li>good seabed sediment conditions </li></ul><ul><li>shelter from high wave loads </li></ul><ul><li>low tidal streams </li></ul><ul><li>grid access North and South </li></ul>Bathymetry: Red = 15m, Blue = 30m
  7. 7. Oriel Windfarm Project Timeline <ul><li>Preliminary Feasibility Started 2001 </li></ul><ul><li>Foreshore Licence Oct 2005 - Oct 2007 </li></ul><ul><li>EIA Jan 2006 - Jan 2007 </li></ul><ul><li>Application for Lease Feb 2007 - ?? </li></ul><ul><li>Grid Connection Offer April 2011 </li></ul><ul><li>Pre Construction planning </li></ul><ul><li>and procurement 2011 & 2012 </li></ul><ul><li>Construction 2013 & 2014 </li></ul><ul><li>Operation Commencing 2015 </li></ul>
  8. 8. <ul><li>Drivers for Offshore Wind Development in Ireland </li></ul><ul><li>Danger of security of supply - At the end of a long pipeline </li></ul><ul><li>Fuel price risk - 92% of fuel imported </li></ul><ul><li>Renewable Energy Targets - 40% of electricity from renewables by 2020 </li></ul><ul><li>Oil price today - $80 per barrel in the worst recession in 60 years </li></ul><ul><li>Economic imperative - using our natural resources </li></ul><ul><li>What is needed to kick start the industry </li></ul>
  9. 9. <ul><li>Barriers to Offshore Wind Development in Ireland </li></ul><ul><li>Issue Solution Status </li></ul><ul><li>Licensing Regime Strategic Infrastructure Act New Legislation drafted </li></ul><ul><li>Grid Connection Gate 3 Process for initial projects Grid Modelling underway. </li></ul><ul><li>Some Projects with consent outside the Gate </li></ul><ul><li>Refit 14c/kWh announced February 2008 Terms and Conditions </li></ul><ul><ul><ul><ul><li>published September 09 </li></ul></ul></ul></ul><ul><li>Ireland will not meet its Government Policy target of 40% of electricity from renewables or our EU </li></ul><ul><li>Obligations by 2020 if we don’t have a significant element of offshore wind on the system by 2020. </li></ul>
  10. 10. <ul><li>Phase 1: Ireland’s RES-E 40% Target </li></ul><ul><li>The government has indicated in its NREAP that it will require 6,500 MW by 2020 </li></ul><ul><li>WE have about 1,500 MW on line </li></ul><ul><li>We are building about 200 MW a year </li></ul><ul><li>Many of the onshore projects will not be built, due to planning and financial constraints. </li></ul><ul><li>The scale afforded by offshore wind power is needed to meet our renewable energy targets. </li></ul><ul><li>Any excess can be exported </li></ul><ul><li>. </li></ul>How do we kick start the offshore wind industry in Ireland? Use a Two Phased Approach operating in tandem <ul><li>Phase 2: Export Opportunity </li></ul><ul><li>Offshore projects, exceeding requirements </li></ul><ul><li>- Scale Exceeds Ireland’s current needs </li></ul><ul><li>What do we do? </li></ul><ul><li>Export </li></ul><ul><li>How? </li></ul><ul><li>EU Single Electricity Market </li></ul><ul><li>EU coordinated grid structure </li></ul><ul><li>EU price system for exporters </li></ul>
  11. 11. Export Opportunity – Energy <ul><li>EU Renewables Directive issued June 2009 allows: </li></ul><ul><ul><li>EU inter state trading. </li></ul></ul><ul><ul><li>Requires individual member states plan to reach targets by June 2010. </li></ul></ul><ul><li>Affords a country like Ireland with its massive offshore wind and ocean resource the opportunity to export. </li></ul><ul><li>coordinated planning for the industry 20/30 years out </li></ul><ul><li>required. </li></ul><ul><li>Mechanism for export then needs to be developed by stakeholders in Ireland with objective of: </li></ul><ul><ul><li>Protecting the consumer </li></ul></ul><ul><ul><li>Encouraging export development </li></ul></ul><ul><li> </li></ul>
  12. 12. Export Opportunity - Supply Chain <ul><li>There is over 100,000MW of offshore wind capacity under development in European waters. </li></ul><ul><li>The European Commission expects the creation of 2.8m jobs by 2020 from renewable energy industry in Europe. </li></ul><ul><li>Siemens have predicted that there will be €300bn invested in the offshore wind industry alone in the next 20 years. </li></ul><ul><li>The UK is planning the installation of 33,000MW of offshore wind generation capacity over the next 10 years. </li></ul>Offshore Wind Projects in Development in Europe
  13. 13. Export Opportunity - Supply Chain <ul><li>The biggest supply chain market for offshore wind in the world is 40 miles across the Irish Sea </li></ul>
  14. 14. 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
  15. 15. 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.
  16. 16. Building the North Sea Oil and Gas Industry <ul><li>Industry started 1965 </li></ul><ul><li>Challenge was en par with the moon landing </li></ul><ul><ul><li>Large structures far from shore </li></ul></ul><ul><ul><li>Hostile climate </li></ul></ul><ul><ul><li>Limited similar experience </li></ul></ul><ul><ul><li>Questionable economic returns </li></ul></ul><ul><li>Well orchestrated effort by key stakeholders on all key areas: </li></ul><ul><ul><li>Government </li></ul></ul><ul><ul><li>Oil companies </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Academics and researchers </li></ul></ul><ul><li>Fiscal regime to incentivise investment: </li></ul><ul><ul><li>First era had exceedingly generous terms </li></ul></ul><ul><ul><li>Currently: </li></ul></ul><ul><ul><ul><li>Accelerated tax depreciation of 72% of all investment </li></ul></ul></ul><ul><ul><ul><li>50% tax on net income </li></ul></ul></ul><ul><li>What one saw was: </li></ul><ul><ul><li>National income far exceeds the government support </li></ul></ul><ul><ul><li>The technical and operational challenges were surmountable </li></ul></ul><ul><ul><li>Norway built a sought-after competence that is now exported internationally </li></ul></ul><ul><li>Offshore wind seems to have several parallels </li></ul>
  17. 17. Europe’s gas infrastructure (1979)
  18. 18. Europe’s gas infrastructure(2000)
  19. 19. Source EWEA
  20. 20. Source EWEA
  21. 21. Source EWEA
  22. 22. Source EWEA
  23. 23. Source EWEA
  24. 24. Conclusion <ul><li>Offshore Wind presents a substantial opportunity for Ireland </li></ul><ul><ul><li>To achieve energy security </li></ul></ul><ul><ul><li>To reduce carbon emissions </li></ul></ul><ul><ul><li>To develop a new export product </li></ul></ul><ul><ul><li>To grow a green economy </li></ul></ul><ul><li>The Oriel Windfarm is going to be a major first step in achieving this </li></ul><ul><ul><li>Generating 330MW 5% of Irelands annual electricity consumption </li></ul></ul><ul><ul><li>Avoiding 600,000 tonnes of carbon </li></ul></ul><ul><ul><li>Creating 610 jobs </li></ul></ul><ul><ul><li>Using our most abundant resource to secure a better future for Ireland </li></ul></ul><ul><li>One consented wind farm will restart the offshore wind industry </li></ul>

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