Oireachtas Joint and Select Committees
Tuesday, 23 January 2018
Joint Oireachtas Committee on Communications, Climate Action and Environment
Meeting Ireland’s Targets under the 2020 Climate and Energy Package: Discussion
11:30 am
Mr. Stephen Wheeler:
To address Deputy Eamon Ryan's comments with regard to the auction and the signals, there is something of which we need to be really aware. Currently, there is around 15 GW of offshore wind deployed across Europe. The target is to get that to 100 GW by 2030. In order for Ireland to play its part in the industry and really take advantage of the supply chain benefits that will come from work on that scale and that have already come, we need to send clear signals. As my colleagues in NOW Ireland have indicated, it is incredibly important that a clear policy comes out to support offshore wind so that we can be part of that industry. In respect of jobs creation and inward investment, my own company, SSE, has already invested over €2.5 billion in the last ten years. We are one of the investors that want to continue investing but we need clear signals. Once they are given the competition and the big players will come. As Mr. O'Connor has just said, they are already interested in Ireland. We have to show our credentials to really be part of this industry.
Deputy Stanley raised wind intermittency. Members may have seen that over Christmas we reached record levels on the island of Ireland, when over 67% of our energy requirement was delivered through renewable resources. That was for one half-hour period. However, it really does show the fantastic work that companies like EirGrid have done in allowing renewables to penetrate the system and work within it. The Deputy is right that the wind does not always blow. However, it actually blows a lot. To avoid intermittency issues, we need what we already have, namely, VS3 programmes that are already kicking off to support and drive flexibility. As well as wind, we also own and operate thermal stations. Great Ireland has a 460 MW combined cycle gas turbine, CCGT, in Wexford, which is the most efficient in the plant. When the wind is not blowing, it is about ensuring we have the flexibility that the traditional, cleaner plants can actually come on in the time that is required. We are world leaders in how we adopt renewables and bring them onto our system without causing significant issues. EirGrid should be given a lot of credit for that.
The Deputy asked about our seven turbines at the Arklow bank. That was done with GE back in the day. It is disappointing that we are sitting here today and still have not seen that grow. It could potentially be delivered well within the 2020 timelines but we need the decisions now. There is no point in 2018 or 2019 saying we are going to have an offshore option. We will not hit the 2020 timelines if that is the case. It is really important that we see action now as distinct from a couple of years down the road. As I said in my presentation, we have had huge success in delivering onshore wind to date - nearly 4 GW of onshore wind on the island of Ireland. We should be incredibly proud of that. I have been in this business for over 15 years. I have been on the ground and have seen the challenges and complexities, whether they be social acceptance, grid, or planning challenges. It is becoming more and more difficult. The future is not about one technology but many complementary technologies in onshore wind, solar and offshore wind. The big advantage of offshore wind is the scale. This can be deployed at scale by big international and local partners over a very short period. That is something we now need to be a part of.
Deputy Eamon Ryan asked about Brexit implications with regard to interconnection. To keep the interconnectors up and going is incredibly important.
The east-west interconnector has proven it is already a really important part of infrastructure. We also need to be clear that it is one thing to talk about exporting but first and foremost we need to look at our domestic demand requirement and as targets grow beyond 2020 out to 2030 we are talking potentially 30% to 35%. We will have a job in its own right to deliver against those targets locally before we even get to thinking about exporting. The reality right now is that we are off our target for 2020. We need to accelerate the delivery to 2020 to hit that target and then go beyond that. Brexit will play out and at this stage I do not know what the outcome of it will be. Most important, there is an opportunity here to deliver on our domestic targets and we need to make sure that all the technologies are supported to do so.