The Government has set ambitious targets for renewable energy in the coming years. The objective is to have five gigawatts (GW) of grid-connected offshore wind and 9GW of onshore wind by 2030. However, the current slow rate of progress makes these targets extremely challenging and will have a significant impact for the future if we don’t act in a timely manner now.
Indeed, since then taoiseach Bertie Ahern officially opened the Arklow Bank 1 offshore wind farm 21 years ago no new offshore energy projects have been developed. “We co-developed the Arklow Bank wind farm,” says SSE Renewables managing director Stephen Wheeler. “The intention was for it to be a demonstration project for the development of Ireland’s offshore wind resources. We all waited for the big leap forward to be made, but today Arklow Bank remains Ireland’s only offshore wind farm.”
He notes that four projects were successful in the Government Offshore Renewable Electricity Support Scheme (ORESS) auction in May 2023, and while five of the six phase-one projects, including Arklow Bank Wind Park 2, are before An Bord Pleanála, none of them has yet received planning permission.
“It is vitally important from an Ireland Inc point of view that all of these projects get through the planning process as quickly as possible,” says Wheeler. “This westerly outcrop of Europe that we call home is blessed with the best wind resources in the world. Our seabed is 10 times the size of our land mass and Ireland has a massive opportunity to become a significant exporter of electricity. There’s also a big industrial opportunity to be harnessed. From an investment perspective, the technology sector has been a big part of Ireland’s economy for the past 25 years and will need to be for the next 25. Offshore wind and renewable energy can be the backbone of that industry, supporting not only data centres but other large energy users, core to our economy.”
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Turning to the onshore target, he points out that the renewable energy industry has deployed 5GW of onshore wind since the turn of the century. “Ireland has done very well in that regard and is second only to Denmark in Europe,” he adds. “But we need to deliver almost the same amount again in the next five years if we are to meet the targets set by the Government. However, last year only 338MW of onshore wind was connected to the grid. Planning permission was granted for 700MW, but applications for almost the same amount were rejected.”
He believes reform of the planning system needs to be implemented if the targets are to be met. “The Irish planning system can add to delays for critical developments,” he notes. There are some positive signals in the new Planning Act, but we need to see national climate targets embedded into local planning policy with renewable energy developments to be considered as in the overriding public interest.”
SSE has played a significant role in the progress made to date, Wheeler continues. “We have been investing in Ireland for over 20 years. We employ around 1,300 people here and have invested around €2.5 billion so far in Irish energy infrastructure. SSE has plans to invest another €900 million in new home-grown energy for Ireland by 2027, and that could be up to €2 billion by the end of the decade if the right policies are in place and market conditions allow.
“Today, SSE Renewables is one of largest onshore wind developers and operators on the island of Ireland. Renewables is a core business for us, and we want to deploy more capital to deliver large-scale renewables projects to help Ireland achieve its climate action targets.”
The 800MW Arklow Bank 2 offshore wind farm is among those large-scale projects. “We are awaiting a determination from An Bord Pleanála on that. We are working with the transmission system operator on a grid connection, and we are also looking at alternative routes to market, outside of the Government ORESS contracts, to ensure the project is delivered.”
Pointing to its economic as well as environmental benefits, Wheeler points out that the project could create 2,300 direct and induced jobs throughout the project’s lifetime, from development and construction through to operations and decommissioning, and support 130 jobs, direct and induced, when in operation. “It’s estimated Arklow Bank 2 can deliver a national economic benefit of up to €800 million and half of that would be spent in the local Wicklow and Wexford economy.”
Ireland has been a leader in renewables, and it can be a leader again. Business as usual is no longer acceptable
— Stephen Wheeler
Offshore wind has been experiencing some challenges as a result of higher costs in the supply chain and elevated interest rates, and Wheeler believes that needs to be taken into consideration. “We are building the world’s biggest offshore wind farm at Dogger Bank off the east coast of England at the moment. We have been involved in onshore and offshore wind for a very long time, and we want to bring that track record to deliver for Ireland, but we need to recognise that increased costs and project delays are making that difficult and add to the already significant challenges.”
The company currently owns 700MW of operational onshore wind capacity at 31 wind farm sites across the island of Ireland. These include one of Ireland’s largest wind farms, the 174MW Galway Wind Park in Connemara, Co Galway, which is co-owned with Greencoat Renewables.
“We also have a number of onshore projects at different stages of development,” says Wheeler. “We have partnerships with Bord na Móna and FuturEnergy Ireland as well as our own projects.”
“We are also looking at solar and battery storage opportunities,” he adds. “Renewable energy is variable and will need storage capacity for when the wind doesn’t blow and the sun doesn’t shine. Some of that will be battery storage but we will need to look at long-duration energy storage beyond 2030.”
In Scotland’s highlands, the company is developing its 1.3GW Coire Glas project, a facility similar to Turlough Hill, but on a much larger scale, which will be capable of storing 30TWh of energy – enough to power more than three million homes for up to 24 hours. “Projects like that will be critical for Ireland post 2030 when renewables output far exceeds our domestic needs.”
The country will still need flexible generation to back up the electricity system but there is a need to move towards more efficient and lower-carbon plants. “In Tarbert in North Kerry SSE Thermal is progressing a power station which will run on 100 per cent sustainable biofuels, with the potential to convert to hydrogen in the future,” says Wheeler.
The need to address delays and blockers in the system is pressing, he continues. “Where we are now in terms of global warming, the cost of doing nothing far outweighs the cost of decarbonising society. Energy companies can lead the drive to decarbonisation, but a number of issues must be addressed. The planning system should be aligned with national climate action targets and renewable energy developments need to be seen as being in the overriding public interest. The Government needs to prioritise delivery of offshore wind projects, especially phase-one projects, to ensure they are delivered on time. Onshore wind should also be prioritised. And we need clear policies on how the industry can achieve a return on capital including in relation to corporate power purchase agreements.”
Supporting infrastructure is also required. “If the offshore wind industry is to succeed in Ireland, we need to upgrade our ports. The €90 million investment announced by the Ireland Strategic Investment Fund into the Port of Cork is very welcome, but we need to upgrade a number of ports. In addition, industry and the Government should continue to work together, as they have been doing in the onshore and offshore wind taskforces, to accelerate renewable energy development. These actions will help us to realise the benefits that renewable energy offers Ireland. It will also help us to build a legacy for future generations that we can be proud of. Ireland has been a leader in renewables, and it can be a leader again. Business as usual is no longer acceptable. It is time for urgent action to enable the world to decarbonise, and SSE wants to deploy capital to help Ireland meet its renewables targets.” See sse.com/Ireland for more
