Mr. Tim Cowhig:

I thank the committee for giving Element Power the opportunity to address it today. I am the chief executive officer and am joined by my colleagues Mr. Kevin O'Donovan, chief development officer, and Mr. Peter Harte, chief technology officer. The company was established in 2008 and specialises in the development of onshore wind electricity generation. It has a presence in 16 countries. We have Irish offices in Tullamore and Cork city. Through our Greenwire project, we propose developing 40 wind farms on 20,000 ha of land in the midlands to generate electricity for export to the United Kingdom on a new, dedicated grid connection.

Public debate on topics of national importance such as this is always welcome. It provides us with an opportunity to discuss the benefits of our proposal in a national forum and set out how the project can be a catalyst for economic recovery in the midlands. I acknowledge the anxieties that have been expressed by many in regard to wind energy in general, and the proposal for the midlands in particular. I am very much aware that we have an obligation to allay concerns and provide answers to many questions raised.

We are moving towards a European energy market where a trans-European power network connecting countries across Europe would facilitate surplus power flowing to where electricity is needed. It would make Ireland more self-reliant in the event of a crisis. In Ireland, we have an abundance of wind, much more than we need ourselves. Therefore, we have an opportunity to create a new export industry, such as our beef and dairy export businesses, creating thousands of jobs.

In its document Strategy for Renewable Energy: 2012–2022, the Government has identified the exportation of renewable energy as one of five strategic goals. With that in mind, the Irish and British Governments are hoping to deliver an intergovernmental agreement, IGA, very soon to facilitate the trading of renewable energy between the two countries. A strategic environmental assessment and new planning guidelines are being drafted by the Irish Government. Our project, therefore, is in line with Government policy.

The Greenwire proposal is very timely in light of developments in the United Kingdom energy market. Our British neighbours have been energy-independent since the discovery of North Sea oil and gas in the 1970s but these reserves are nearing depletion and the United Kingdom is once again facing reliance on imported energy to meet its demand. The United Kingdom is also decommissioning its ageing nuclear and coal power stations, which currently supply 20% of its energy. The United Kingdom has made a commitment that 30% of its electricity will be from renewable resources by 2020. While it has three times as much onshore wind as Ireland, it will need another 12,000 MW of renewable energy capacity before 2020 to achieve this target. This is why Britain's energy challenge should be seen as Ireland's opportunity. However, it is important to note that the United Kingdom has other options for meeting its energy needs, including offshore wind energy, hydroelectricity, thermal energy from Iceland and nuclear energy from France. Ireland must take the opportunity or risk missing the chance to create the new export sector.

The midlands possesses an enormous and largely untapped natural resource in wind energy. Tapping that resource could have a transformative effect on the economy in the region. Our planning laws require that for projects of such scale there must be a community contribution. If granted planning permission for Greenwire, Element Power intends to establish a comprehensive community-benefit programme to assist the community where the wind farms are located, particularly people living closest to the turbines. The entire local community would reap the dividends from our project, not just landowners, local authorities, businesses, tradesmen and others.

The community benefit programme would be established prior to construction and would operate for the duration of the wind farms' commercial lifetime. We have met numerous voluntary community groups, development associations, local enterprise bodies, sports clubs and societies across the five counties where the project is proposed. These meetings have taken place as a part of a series of public information days in addition to an extensive consultation programme, which has been under way since 2012. The feedback garnered to date has been extremely positive on many levels. The community benefit programme would have a number of components, particularly a near-neighbour fund for those living closest to the turbines, a local community fund, an educational fund and an enterprise fund. The near-neighbour fund would include the financing of practical energy projects for individual households. It would be established such that those living closest to the wind farms would receive direct supports from those farms. We propose that all families living within 1 km of a turbine benefit directly from the project. We are engaging with the community to see how best the fund might operate.

The local community fund would distribute finance annually to deserving projects within the communities where the wind farms are located. We have met over 100 community groups over the past two years that are interested in participating in this programme. The educational fund would help to finance educational initiatives for students in communities where wind farms are located. The local enterprise fund would foster local enterprise and employment creation through the support of small and local businesses.

We propose a total investment of €250 million into the midlands by way of community benefit for the 3 GW project. That would have quite an impact on communities in the midlands. This €10 million per annum benefit scheme added to the €50 million in rates and rent each year would see Element Power contribute a minimum total of €1.5 billion to the local economy over the 25-year lifetime of Greenwire. The payments to local authorities in Offaly, Westmeath and Laois would amount to between 40% and 50% of the entire rates incomes which those counties currently enjoy. That represents many additional services or it could be used to create a reduction in the rates burden on hard-pressed businesses of up to 50%.

In terms of employment potential, the construction works required for up to 3,000 MW of wind power as well as installing an electrical network underground can create approximately 10,000 construction jobs. The only way this project will be delivered is with locally sourced employees. It is normal procedure in Ireland that the balance of plant is sourced locally. The Construction Industry Federation, CIF, is already working with its members to ensure they can harness the benefits of such an enormous construction project.

There are more than just construction opportunities. Personnel with a range of different skills will be sought during pre-construction and construction of the projects, such as ecologists, scientists, environmental engineers, mapping and geographic information systems, GIS, specialists, experts in acoustics, landscape architects, archaeologists and hydrologists. Road construction companies, quarries and other building material suppliers, construction workers and so forth will be required to develop approximately 1,000 km of road networks. Civil and structural engineers, electrical and power engineers, geotechnical experts, transport and traffic engineers, wind assessment wind analysts, monitoring and mast direction crews will also be required. Logistics, travel, lodging and material supply will generate significant additional local revenue over the three year construction period between 2016 and 2019, meaning a spin-off for local shops, hotels, garages, construction companies, haulage firms, plant-hire operators and many other service providers.

Element Power is already working in the midlands to raise awareness of the need for training courses to equip local people with the requisite skills. We are liaising with education providers to add modules to existing courses and develop conversion courses for already qualified persons. Ireland already has a wind energy industry of almost 2,000 MW which currently employs 3,400 people, and that is without any turbine manufacturing. We are aware of interest from major international players to develop manufacturing facilities in the midlands should Greenwire or other projects proceed, but the job of bringing them here is one which rests with IDA Ireland.

Ireland has the potential to be involved even more significantly in the supply chain of the wind energy industry. Greenwire would act as the enabler for Ireland to become a key player in this sector. However, if we are to develop an export project in the midlands and capitalise on this pioneering opportunity, we must act swiftly. The window will not stay open indefinitely as Britain needs this renewable energy by 2020. If we are to embrace this opportunity, the Irish and UK Governments need to finalise a detailed intergovernmental agreement quickly, which will allow the trading of renewable energy between both jurisdictions. The Department of Communications, Energy and Natural Resources must complete a strategic environmental assessment and the Department of the Environment, Community and Local Government must swiftly conclude the new planning guidelines for wind energy. These are some of the key requirements from the Irish side. We also must have strong signals and actions from the UK side, such as contracts for difference, CFDs, and a commercial strike price.

A project such as Greenwire cannot proceed without community support. We have had positive engagement with hundreds of voluntary, sporting and community groups in the midlands for the last two years. We have more than 1,000 farming families in the midlands that are anxious to see this project proceed. The views of local communities should not be casually dismissed because their voices are not heard daily.

Several claims were made to this committee on 8 October last by a group from Westmeath. Many of these claims were not based on fact and presented very clear evidence as to why much misunderstanding about the wind industry prevails. Our investors are not in the business of backing projects which might prove injurious to local communities.

Greenwire is, of course, a private development. It will not cost the Irish taxpayer one cent. We are proposing the creation of thousands of jobs and billions of euro by way of local spend by harnessing a natural resource. There will be no overhead lines and our infrastructure in Ireland and subsea cabling is completely independent of the Irish grid. The cost of the electricity generated will be borne by the UK consumer. While the cliché "once-in-a-lifetime opportunity" is sometimes overused, Greenwire does represent such a prospect. It is innovative, and it can place Ireland firmly at the forefront of the cleantech industry. Let us seize the moment and develop this new clean export industry.