Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

Thank you very much, Acting Chair. I very much appreciate this chance to share some of the latest thinking and developments in the development of the offshore wind industry, which is going to be of significant economic, environmental and social consequences for the people of our country. We were one of the first countries out of the traps on this. The offshore wind power project off Arklow and Brittas Bay beach, which people will know, was one of the first in Europe, if not the world, so we have seen how it can be done. In the intervening period we fell behind in the development of offshore for what was a rational reason in some ways, in the sense that we had an onshore opportunity, which was more cost-competitive and through which we have successfully delivered our renewables target. However, it is now past time - many would argue it is long past time - for us to go offshore and take the benefit of the comparative competitive advantage that we have in wind resources. We happen to live in one of the windiest places on the planet. I recall a former Senator, Brendan Halligan, saying many times that in the same way as we converted our comparative competitive advantage in grass growing into a food industry, in Kerrygold and so on, we should convert our comparative competitive advantage in offshore wind into an exporting industry as well as meeting our domestic needs. That is what we are going to do.

There is a transformation under way in the world in respect of renewables. It is now at such a scale, not only in wind but also, in particular, in solar power that this year the head of the International Energy Agency, IEA, estimates that 90% of all investment globally in electricity generation will be in renewables. It is a quicker, cheaper and better system, in particular in a country like Ireland where we have real skills in the project management companies that deliver the renewables power, in the balancing capability in EirGrid and in the ESB, as well as having one of the best resources. It makes absolute sense for us to develop it.

In fact, we are in something of a race because all our neighbours, and other parts of the world, are looking for the same industry. The UK is probably the first, ahead of all the others in the volume of power it has developed in very similar waters to us. The Germans, Dutch, Danes, Belgians, Norwegians, Swedes, French and Spanish - everyone in our area - are looking to attract this investment. The same is happening in the US, China, Japan and every major economy. For this reason, we must be quick because there are limited resources in turbine manufacturing, shipping, cable manufacturing and all the other logistics and in the foundations. There is a limited industrial capability, and we must be quick to make sure as much investment as possible comes to Ireland and is part of a long-term pathway for two or three decades whereby we will scale it up and deliver probably the biggest investment project in the history of the State. We can and will do this and we will be good at it. We will do it in co-operation with our European colleagues.

I was very proud, as the president of the North Seas Energy Cooperation agreement, to get the UK to sign into the agreement again in December last. This must work in collaboration with our neighbours. The process of being part of a regional electricity market is where we are going. There is a project to connect Ireland to France. There is a new interconnector with the UK and further interconnectors which will come are as important in many ways as the turbines and the development of the power supply itself.

I am conscious that time is tight so I will not be able to go into all the details but if we look at other countries in terms of what is mission critical for delivering this, planning is the issue. First, we must get this right so that we protect the environment at the same time as we address climate change. We know we have the two crises of biodiversity loss and climate to address at the same time. We must ensure the solutions to one do not impede the other. Probably the biggest challenge is getting certainty, derisking the planning aspect and winning the confidence of our local communities. That is what we need to get right more than anything else. There have been very significant developments in the past year to help the State do that. I refer to the passing of the maritime area planning legislation and the establishment of the Maritime Area Regulatory Authority, MARA, to which a chair has been appointed and to which a chief executive will be appointed within weeks. It will have a critical role in consent and in helping with the planning.

Senators and others will know that we have gone with a three-phase approach. In the first phase, where we are dealing with a relevant project that has already been in the planning system, in many cases for up to ten or 15 years, we will progress it. There is one on the west coast, Sceirde Rocks off Connemara, and six in the Irish Sea. We are in the middle of that process. The auction system process is up and running. In April, we are due to conclude that and then the projects will have to go into the planning system. An Bord Pleanála as well as MARA have a critical role. An Bord Pleanála must scale up its capability to work with these companies now. It must start engaging with them so that they are able to go into the planning subject to get it through the auction process and get into the planning approval process. We must do that in a timeline where we are delivering those projects at sea and going into construction in the early years of the second half of this decade. They will not all get through. There is almost 5 GW of potential power in those seven projects, but we expect a significant percentage will do so. That will build up our capability and meet our immediate power needs, in particular on the east coast, especially Dublin, where we have a very large demand for power output.

We are also due to go to the Government shortly to set out the approach for the second phase. That is where we will start to switch away towards a State-led planning approach, still involving the private sector and developers, but very much where a lot of the planning risk and environmental analysis and assessment will help those projects be delivered.

If planning is the number one key issue, the grid is number two in terms of the design of the development of these offshore resources so that it optimises both our domestic grid and our needs but also optimises, as we go to the enduring regime, how we export and use the power in an effective way.Phase 2 will likely comprise two different phases, the first of which will be a continuation of the fixed-bottom system, and the second of which to be delivered will be the floating offshore capability. That will be designed around some of the environmental assessments, including special protection areas, special areas of conservation and marine protected areas, so that we get the environmental planning right at the same time as we avail of the development opportunity. That will be key. Community consultation is critical. There will also be significant community gain as we develop resources. The estimate is that a 500 MW facility might bring €4 million per annum into the local community. We will design it so that the local community has a real role and the community benefit evolves.

Phase 3 involves moving to really large-scale capability. The figure mentioned was something like 30 GW but, in truth, if we get the scale of the resource right, it is a multiple of that, with some of the assessments of the scale of the resource in our waters going up to 70 GW. I have frequently met other European energy ministers at the European Council who make the simple point that they have a deficit in renewable power and we have a surplus, and ask if we can talk. Senator Dooley met the German hydrogen ambassador in Shannon. German officials are coming to us to see what our plans are with regard to that enduring, large-scale regime. It is very much about floating capacity in this case. The waters to the west and the north west are where the real scale resource exists.

Anyone who knows the west coast knows that one can go west and be in 100 m of water before too long. Senator Garvey knows this better than anyone. That requires floating offshore generation. That is the real prize. It involves developing something which protects our environment and delivers that scale of power. It is the energy of the future. We have an abundance of it. It gives us economic security, sees us developing a role in climate change, and allows us to develop new industries which can use that power.

I am looking forward to the report from the Shannon area economic task force because it is not just a matter of deploying the turbines, manufacturing them and using sites like Moneypoint, Tarbert and Shannon Foynes; it is also about providing energy for Aughinish Alumina, Shannon Airport, Irish Cement and new industries that will locate where this clean power supply is. For the west and north west in particular, as well as for the south and, initially, Dublin, with the east coast power coming in, the prize is clean power that gives us a secure economic and environmental future. I look forward to hearing what Senators have to say on the matter.