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Offshore wind energy has many benefits, but key challenges must be overcome for it to become a reality

As we approach the final months of 2021, questions are being raised about what lies ahead for the Irish offshore wind industry. With every passing month we grow closer to the climate action targets to which we committed: 1GW by 2025 and 5GW by 2030, meeting 70% of our nation's electricity needs with renewable energy.

SSE Renewables is the leading developer, owner and operator of renewable energy in the UK and Ireland. It holds the largest portfolio of operational, in-construction and in-development renewables sites and projects across the UK and Ireland, at over 13GW, comprising offshore wind, onshore wind and hydro energy.

Since 2008 the SSE Group has invested €3.5bn in the Irish economy and voluntarily invested almost €9m in communities hosting its windfarms.

It is SSE Renewables' goal to increase that investment by making a substantial contribution to Ireland's targets for onshore and offshore wind by 2025, 2030 and beyond, while driving the green economic recovery as the world emerges from the pandemic.

Offshore wind has many benefits for the climate, the economy, communities, the supply chain, and jobs. It is estimated that offshore wind energy could create 2,500 jobs over the next 10 years and attract over €42bn in lifetime investment. For this to become a reality, some key challenges must be overcome, not least in relation to developing and nurturing the indigenous supply chain.

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Incremental Delays

It is absolutely essential for Ireland to demonstrate to the highly competitive global market and supply chain that it is open for business. On the back of incremental delays in new planning legislation, regulation, and a route to market – known as the Renewable Energy Support Scheme (RESS) – developers already feel supply chain confidence waning.

While Ireland is unlikely to be home to many Tier 1 suppliers, like blade manufacturers, there are significant opportunities to establish a local supply chain.

Irish companies are in a position to develop the skills and experience needed to compete in a global market and maximise the potential for national economic gain.

The development of renewables is a cost-efficient way to achieve decarbonisation in the long term. The prize will be a sustainable energy system that increases the attractiveness of Ireland and Northern Ireland to international investment.

When the current generation capacity crisis is considered, it is difficult to see how this can be achieved without the immediate large-scale deployment of renewables. While wind energy can't address Ireland's capacity issues on its own, it can become the backbone of the domestic electricity system.

The benefits accrued from offshore wind are vast. SSE Renewables' Arklow Bank Wind Park Phase 2 will require an investment of €1bn to €2bn and is expected to deliver a gross value of c.€860m to the island of Ireland and create c.10,500 Full-Time Equivalent years nationally, c.4,800 of which will be local. Arklow Bank Wind Park Phase 2 can deliver by 2025 if decisive action is taken by the government before year end.

Undeniably, some key challenges remain. As the enactment of the MAP Bill is awaited, it is likely that it will be mid-2023 before planning applications can be submitted to An Bord Pleanála.

The concept of 'one shot at planning' must be addressed, to ensure that developers have the opportunity to redesign projects if necessary, rather than being put back to the starting line, having invested millions of euro and years of work.

Design Flexibility

The MAP Bill needs to allow developers some design flexibility to incorporate technology advances after a planning application has been submitted, ensuring that costs are kept to a minimum for the state and the customer. Of significant concern is the indication that offshore RESS will progress without planning as a prerequisite.

There is concern that this will result in the state allocating precious contracts to developers and projects that may never be in a position to deliver on the committed scale.

Photo: Arklow Bank Wind Park Phase 2 can deliver c.4,800 local jobs