Ireland’s renewable energy sector is at something of a crossroads. We’ve had maybe two decades of developing and operating onshore wind and in recent times started on what looks to be a promising roll-out of solar photovoltaic (PV). In the process, we are bedding in a critical aspect of Ireland’s electricity system.
To use a simple analogy, we are at a point where we have come through primary and secondary school and now we are getting ready for university. We must be ready to address more complex topics and increase the depth and breadth of our knowledge.
Overall, if I’m asked how renewable energy is going in Ireland, I would say much has been achieved, having started from humble beginnings, but there is much more to do. With immediate effect, we need a renewed commitment to resolving the obstacles facing the industry. If this is not addressed at a national level, we will not reach targets for renewables buildout and the cost and security of energy supply will become an inhibiting factor for the Irish economy.
The Government’s targets for 2030 and 2050 are ambitious, and companies such as Ørsted are playing a major role in helping to achieve them, across onshore and offshore wind, solar and storage. Working together, each has a part to play to deliver a competitive and secure energy mix.
How does VAT in Ireland compare with countries across Europe? A guide to a contentious tax
‘I was a cleaner in my dad’s office, which makes me a nepo baby. I got €50 a shift’
Will we have a tax liability if Dad gives us his home while he is alive?
Finding a solution for a tenant who can’t meet rent after splitting with partner
To build an efficient energy system, we need efficient processes. If we look at onshore wind developments, it can take up to 10 years for a development to become operational, from planning to grid connection, construction and so on. In October, the Economic and Social Research Institute estimated that these delays have added as much as 10 per cent to the cost of electricity in Ireland today. Is that acceptable?
I hope that planning timelines may be improved with the adoption of the Planning and Development Act, and it’s encouraging that this important legislation has progressed through the Oireachtas. We’ve also seen positive movement in grid connection processes. The revised policy launched in September means renewable developers can now apply for grid connections biannually, rather than the once-a-year regime previously in place.
We can also now apply for grid access during live planning applications rather than after the decision is made, which may help compress timelines through processes running in parallel. We will now see if they work in practice.
Yet challenges persist. The constraint of the grid system poses a significant threat to the roll-out of renewables. We must make better use of the existing grid, commit to upgrading what’s already there and expand on new grid infrastructure. The absence of policy for hybrid connections is one significant missed opportunity. In this context, hybrid means co-locating technologies such as wind, solar and battery storage so that they can share a grid connection.
When the wind doesn’t blow the sun can shine or storage can export, meaning the connection is better optimised. If we know grid can be challenging to build, then why accept waste in the current system? We need more grid, but we also need to make the most of what we already have.
We need continued political and stakeholder will to address the delays in our system here, now more than ever
While technology evolves, the need for good people and communications endures. We will never achieve a quicker processing time for applications unless the relevant bodies have the people power behind them. Our experience in Scotland shows that strong pre-planning engagement with planning and grid bodies helps ensure issues and challenges can be flagged earlier in project planning significantly reducing delays.
Looking further afield let’s contrast Ireland’s timelines with those of Germany. Hatzenhof solar park is one of Ørsted’s next projects in Europe, with construction begun in October. The land for this was secured only in the first quarter of 2023 but it will be operational by the second quarter of next year. A turnaround of this level is unheard of in Ireland. The conclusion could be that Germany represents a better market to invest development capital at present.
The German market is not without risks but things move more quickly and to a reliable timeline, which is something we need to be aware of in Ireland. We need continued political and stakeholder will to address the delays in our system here, now more than ever.
As we move through the next few decades, the cost of business will increasingly be influenced by the price and security of electricity – which is something we need to ready ourselves for. Key to unlocking the next phase of Ireland’s economic development is the transition to locally produced renewable energy. Investors will look to other locations if Ireland isn’t meeting their needs. We can position ourselves to meet those needs – if the issues pertaining to planning and grid are addressed.
The question ultimately is are we going to compete? We have to face up to the parts of the system that are holding us back if we are to answer that positively. It can and must be done.
Kieran White is senior vice-president Europe at Ørsted Onshore
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
