Ireland - Offshore wind energy firms hopeful of major EU support

Offshore wind energy producers are hoping major support for the industry will be signaled by EU Commissioner for Energy Andris Piebalgs, when he addresses their annual conference in Dublin. Currently in excess of 2,500 megawatts (MW) of offshore wind energy are in planning, alongside about another 8,000MW of onshore wind energy, representing potential investment of about €23 billion.

But while this represents just a fraction of the island’s total wind energy potential, the electricity is vastly in excess of Ireland’s own demand, and selling it abroad is dependent on major investment in the national grid and interconnectors to the UK.
Members of the National Offshore Wind Association (Now) which holds its annual conference today, are hoping Mr Piebalgs will say EU enthusiasm to replace imported fossil fuels with renewable energy will result in financial support for developing the Irish industry.

In recent weeks the European Investment Bank announced up to €300 million in soft loans for an interconnector between Ireland and the UK, while a further allocation of up to €200 million was approved for development of the ESB’s renewable energy businesses, principally wind farms. However, given the potential of Irish wind energy, Now says many more interconnectors will be needed if wind energy is to be exploited.

Sources said an alternative proposal that Irish wind farms located in the Irish Sea would seek connections to the UK grid, is also being considered. A third possibility is that a separate grid would be established to cater for offshore power.

A report from wind turbine manufacturer Siemens in recent weeks, calculated the value of proposed European wind farms over the next 25 years to be more than €300 billion.

Proposed Irish offshore wind farms included in this calculation were:
- Clogher Head Oriel Wind Farm, which projects 330MW;
- Dublin Array Saorgus Energy, offering 725MW;
- Proposal from Codling Bank Fred Olsen/Treasury Holdings would add 1100MW;
- Airtricity is offering 500MW through its Arklow Bank 2 project;
- Na Sceirde Fuinneamh in Co Galway is projecting 100MW.

Based on calculations by Siemens that it costs in the region of €3 million per MW to install wind generation, Irish members of Now would account for a potential investment of almost €7 billion.

For more information please contact Trevor Sievert at ts@windfair.net