Ireland can lay claim to some of the best conditions for wind-energy generation, but getting wind farms up and running is proving to be a complex and frustrating process.
While a recent all-island grid study suggested Ireland could be a world leader in renewable energy, and produce up to 42 per cent of energy from renewable sources by 2020 (the majority of which would be through wind), the pace at which wind farms are being connected to the national grid is nowhere near what this target would demand.
Under EU proposals, Ireland, by 2020, has to cut carbon emissions by 20 per cent and increase renewable energy to 16 per cent. To compensate for this, and the growing energy needs of the country, it has been estimated that 6,000mw (megawatts) of energy must be produced from renewable sources by then. Last year, only 58mw of wind energy was added to the grid. If targets are to be reached, between 300 and 400mw must be connected to the grid annually, between now and 2020.
While more than 7,000mw worth of applications are in the pipeline - which is causing a major administrative backlog - the problems these proposed projects face are varied and time-consuming. Dr Michael Walsh, chief executive, Irish Wind Energy Association (IWEA), said costs, planning permission, price per kw (kilowatt), and securing finance and consent from landowners for overhead lines are the biggest issues.
"The cost of wind turbines alone has increased by around 60 per cent in the last three years," Walsh said.
"They now cost around EUR1.3 million per mw [turbines range in size from 0.8mw to 3mw], but when you factor in the associated construction costs of building a wind farm, they could be rounded up to an average of EUR2 million each."
He said there was now a shortage in the global market. With the US, or China, ordering 200 turbines for one project, Irish companies could be in the back of the queue looking for ten or 20 turbines.
He pointed out that a considerable period of time might elapse between planning permission being granted and connection to the national grid.
"Planning permission for wind farms expires after five years and, as it is one of the first things to be secured, it may not be in place when connection to the grid is finally established. We are looking to have that period of permission doubled. If landowners do not consent to overhead lines for connection to a substation, then a project often has to be re-routed at greater expense," he said.
While some of these issues - such as connection to the grid - are being worked through by consultation between the IWEA, Eirgrid [transmission operator] and ESB, the price guarantee of 6.5 cent per kw of wind energy produced here is out of line with other European countries - who are competing with Ireland for investors.
The current average cost of energy is 7.5 cents per kw. Britain is offering a guarantee to onshore wind energy producers of 12 cents per kw, while Italy is offering 14 cents per kw. To encourage more investment in this field, energy minister Eamon Ryan recently guaranteed a price of 12 cents per kw for offshore wind energy, as only one project, off the coast of Wicklow, exists here.
Siemens is one of the major companies which design, build and maintain wind farms throughout the world. Dr Werner Kruckow, chief executive, Siemens Ireland, said that a price per kw for inshore wind energy in Ireland must be increased to 10c to attract investment here.
"The west coast, including west Ulster, Galway, Mayo, Cork and Kerry, are as good as north Germany in terms of the amount of wind energy they could generate," he said.
"The capacity utilisation here [the amount of time when there is enough wind blowing to create energy] is 30 to 35 per cent, so on paper Ireland would be a good place to invest if you are in the wind energy business.
"However, the wind farms built under AERS [incentive scheme] are losing money, because of moving energy prices throughout the world.
"In Germany, when the cost of energy was 3 cents per kw we offered 8 cent, so we could become a supplier and now are the leading European producer of wind energy. With projected oil prices of EUR250 per barrel in the future, it only makes sense to raise the guaranteed price and get people from overseas to come here and invest," Kruckow said.
Industry sources indicated to The Sunday Business Post that, with the current state of affairs, it can take up to eight years to get a wind farm operational here, and that targets for renewable energy are doomed to failure if this does not improve.
"People have come here from other European countries and got their fingers burned," said one source.They can't believe all the different bodies they have to deal with, and the various hoops to jump through," he said.
Another hurdle to be overcome is the lack of specialist employees in Ireland needed to work on wind projects, according to Wind Prospect, an independent engineering firm which constructs and operates wind farms. The company has worked on projects in Britain, Ireland, Australia, New Zealand, China, Canada and France.
"Lots of people are looking to get involved in projects, but getting the finance because of major capital costs - is very difficult for non-established companies," said director John Brereton.
"You also need construction specialists, experienced architects, engineers and people who know how to maintain the farms - and there is a major lack of such people in Ireland," he said.
Minister for Communications, Energy and Natural Resources, Eamon Ryan is aware of the many issues facing those with prospective wind farm projects.
At the IWEA conference on April 17, he said: "There are still some remaining obstacles and we are conscious of the rising costs and time delays in getting infrastructure projects built." •
The minister said he is finalising a PSO (Public Service Obligation) order that will bring some projects to a "swift financial close", and also said he is in negotiations with environment minister John Gormley over procedures for planning extensions.
Nicola Cooke
Sunday Business Post
www.buckplanning.ie
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