Oireachtas Joint and Select Committees

Tuesday, 18 February 2014

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Electricity Generation and Export: Discussion

2:25 pm

Mr. Gabriel D'Arcy:

I will talk a little about context. We have made our submission to the committee and I will not read it laboriously. I will just make some comments on the wider context.
Unless one understands the concept of climate change, the need for limiting unrestricted further penetration of fossil fuels, greenhouse gases and what they are and how they impact on global temperature and climate, it will be hard to convince any member of this committee of the benefits or otherwise of renewable energy and low-carbon energy. The UN Framework Convention on Climate Change and its panel, the Intergovernmental Panel on Climate Change, IPCC, have published reports clearly linking greenhouse gas emissions, global temperature increase and climate change. Indeed, this committee, in November 2013, referenced the conclusion that a 2° rise in global temperatures above pre-industrial levels was a trigger for dangerous climate change. This thinking has impacted on the global response and how the globe is trying to manage this clear threat to the world.
Restricting the rise in global temperature to 2° will require reductions of greenhouse gas emissions by 80% to 90% below 1990 levels by 2050. This equates to approximately 450 parts per million of CO2equivalents. Actually, we have gone off that trajectory. This year, we are expected to breach the 400 parts per million for the first time. This has a massive impact and it is being clearly demonstrated. It has an ecological impact for wildlife and we see it already in rising sea levels. In Ireland, for example, it has been exacerbating the flood effects of heavy rainfall. These so-called one in 50 year weather events - Bord na Móna is familiar with this area and has very clean data dating back to the 1950s and 1960s - are now happening annually.
There has been little media or other comment regarding the devastating floods in Cork, Limerick and elsewhere pertaining to the impact of climate. It has been very much focused on response and whether we were ready for them. However, one person who must be listened to is the head scientist of the British Meteorology Office, Dame Julia Slingo. She said that while none of the individual storms had been exceptional - she was talking about Britain but one could reference it to Ireland - the clustering and persistence were extremely unusual. She said:

We have seen exceptional weather. We cannot say it's unprecedented, but it is certainly exceptional. Is it consistent with what we might expect from climate change? Of course, as yet there can be no definitive answer ... but if we look at the broader base of evidence then we see things that support the premise that climate change has been making a contribution.
In response to this global threat and notwithstanding the absence of a fully agreed global deal, the EU has embarked on a path to a low-carbon future, with targets to reduce 2050 emissions by 80% to 90%. Indeed, the recently published EU framework proposal for 2030, which is a follow-up to its 2020 framework, would see renewable energy targets of 27% above the 20% penetration and a greenhouse gas emissions reduction of 40% below 1990 levels, which is double the 2020 target.
In this global and regional environment, Ireland must recognise our outstanding renewable energy resources. We have outstanding renewable energy resources, not just in wind but also in biomass.

However, in the face of significant challenges from its agricultural and transport sectors, Ireland has adopted a target of 42% renewable energy penetration by 2020. This equates to approximately 0.3 kg of carbon dioxide per kilowatt hour in its electricity generation. This is a continuum of very good progress that has been made over the past ten or 15 years. In 1990, we were producing approximately 1 kg of CO2 equivalent per kilowatt hour while by 2011, that had fallen to approximately 0.5 kg per kilowatt hour.

Consequently, given the clear policy objectives for the European region, achieving Ireland's targets regarding efficiency and low carbon will require a greater degree of interconnectivity. This is recognised in a European policy framework and will require greater integration of all the regional electricity networks. Moreover, rather than individual member states meeting individual targets in a much narrower mindset, there will be a requirement for greater energy co-operation. Having spoken about the global and regional markets, from a national perspective Ireland is recognised for its effective and secure management of a relatively isolated system. Instantaneous wind regularly meets 50% of the demand and the target is to push this even higher. However, this will come through enhanced integration. Ireland's wind resources have been well flagged and discussed at this and other committees. Those wind resources and the capacity factors for turbines for wind generation in Ireland are such that further interconnection capacity will provide a broader grid system across Ireland and the United Kingdom to balance the system and optimise the penetration of intermittent renewables with fewer constraints. In addition, it provides an opportunity to export Ireland's considerable excess renewable resources, thereby generating a new source of income, employment and strategic environmental and economic opportunity on the island of Ireland.

Bord na Móna is of the view that this opportunity should be explored fully. I will not go into the details of our proposals in this regard, which are contained in the submission. However, this is a unique leveragable strategic opportunity. It is not tactical and is not imitable in other markets and geographies but is highly strategic not unlike Ireland's water resources of which I have spoken to this committee previously. If we wish to capitalise on this opportunity, we must carefully site our turbines and clusters of turbines in those areas that are designated. For instance, isolated post-industrial cutaway peatlands are ideal for this purpose. There must be a proper and diligent planning process, because this is all about planning. I do not believe there is a major debate about the resources but the issue centres on where these turbines should be sited. Bord na Móna and I accept fully and endorse the need to have a proper planning process.

As for what are the benefits, they are massive sustainable investment on a scale that rarely if ever, has been seen before in Ireland. In addition, they include value-added sustainable job creation in both supply chain and maintenance - my colleague from Element Power has spoken a little bit about that - and huge import substitution. This morning, I heard the chief executive of the Sustainable Energy Authority of Ireland point out that a relatively small amount of wind energy, namely, 2 GW, has caused import substitution of 20% on Ireland's imported fuel bill. This equates to approximately €1 billion.

Finally, this obviously provides the opportunity for a massive increase in export revenues. I revert to the point that a robust planning process is critical, encompassing clear spatial planning, objectives, targets and rules that are implemented. Wind farms, like one-off housing and ribbon development, cannot be inappropriately sited. As some of my colleagues like to quote celebrity economists, allow me to conclude by quoting one celebrity economist from whom the joint committee may hear, as I understand a submission already has been made to this particular committee hearing. In an article on 19 January 2014, Professor Richard Tol stated: "Climate policy, however, seems here to stay; and onshore wind power is still one of the cheaper options to reduce carbon dioxide emissions".