Investments in energy will need to increase in the European Union by almost €400 billion every year up until 2030 to address market volatility and to meet the climate challenge, according to European commissioner Mairead McGuinness.
The latest UN Intergovernmental Panel on Climate Change had found a need to increase by a factor of six the level of investment to meet climate ambitions, she told the annual Wind Energy Ireland (WEI) conference in Dublin. "So despite progress we still have a long way to go to build a zero-carbon future," she noted.
The EU relies too much on imported fossil fuels, particularly gas and oil from Russia, Ms McGuinness added. "It 's a strategic weakness."
With the commission’s latest measures “we show that nothing is off the table, including targeting Russia’s energy sector”, she said.
There were ambitious decarbonisation plans in Europe and in Ireland, but obstacles to progress needed to be identified and timelines set to overcome them, she said.
An interconnected Europe had to be a key part of the work on deploying renewables through a supergrid. “By connecting the European electricity grid, Ireland could share its abundant supply of offshore wind energy with the rest of the Europe.”
The commission’s RePower EU initiative was tasked with ensuring affordable energy prices for the next winter and beyond. “Our focus will be on tackling the excessive electricity prices while preserving the integrity of the single market and the security of supply, maintaining incentives for the green transition, and avoiding disproportionate budgetary costs.”
The cornerstone of the EU’s sustainable finance strategy was the EU Taxonomy, which was signposting the way for necessary private investment at scale to contribute to climate goals.
She said while renewables were at the heart of the taxonomy, investments were needed in gas – particularly LNG storage and transport – as well as nuclear. Building up renewable capacity depended on a reliable supply of energy – including nuclear and gas in the interim – under strict conditions.
The commissioner said the proposal on gas and nuclear “was pragmatic and necessary”’, a managed solution rather than allow “a free-for-all outside”.
Energy transition
Eirgrid chief executive Mark Foley said Ireland "needs gas to backstop the renewable energy transition". When there was no wind or solar power available, dispatchable gas generation was essential, he added.
To transform Irish energy and achieve climate targets was no longer about the grid, it was about a complete ecosystem change required by all parties. “If we fail on 2030, we will leave a horrible legacy for future generations.”
He confirmed the grid would be able to cater for up to 80 per cent of renewables at any point in time if available later this year, though the near-term issues around security of energy supply had to be addressed.
While the planning system was not perfect, Mr Foley said Eirgrid would adjust its approach if projects were not coming through on time. As an indication of change the grid operator was providing underground power links where technically feasible, and had relocated a converter station for the Celtic Interconnector having consulted local communities. This approach "derisks the proposition" and ensures quicker delivery, he said.
WEI has called on the Minister for Enterprise, Trade and Employment Leo Varadkar to bring together industry, key State agencies and Government departments to build an Irish renewable energy industry that would create thousands of jobs, revitalise coastal communities and sustainably grow the economy through scale-up of offshore wind.
A WEI report issued at the conference highlights the success of some Irish companies in building the offshore wind supply chain, including Green Rebel in Cork and Codling Wind Park off the coast of Wicklow. However, it identifies significant challenges including a lack of port infrastructure; skills shortages and uncertainty about when projects will be able to start construction.
The paper calls for:
– An offshore renewable industry forum, led by the Department of Enterprise to agree and implement an action plan to support the offshore renewables development;
– A review of the national ports policy to ensure it supports development of Irish port infrastructure to enable the construction of offshore wind farms;
– A high-level implementation group to address domestic skills shortages; and
– Significant resources for research and development around floating wind energy, development of green hydrogen and emerging offshore renewable energy technologies.
With only one port on the island – Belfast Harbour – suitable to support the construction of an offshore wind farm, there was an urgent need for investment and support for other ports “to ensure they are ready for the opportunities that will come in developing offshore wind for this decade and beyond as we deliver on the huge potential of floating wind energy off our south and west coasts”, Mr Cunniffe said.
“If we fail to act now we will still see these wind farms built, but we will have failed to maximise the opportunity for Irish workers and businesses to build wind farms off our coasts and, eventually, to compete internationally as the world turns more and more to renewable energy in the years to come,” he said.
