Mr. Jim Dollard:

I wish members a good morning and thank the Chairman for this opportunity to address the committee. In line with my regulatory licence as executive director of ESB generation and trading, I do not speak for either ESB Networks or as a retail supplier of electricity to either domestic or commercial consumers. I speak as a generator of electricity that is ultimately sold on the integrated single electricity market, ISEM.

ESB believes that Ireland has a tremendous opportunity now for offshore wind and green hydrogen. We believe there are four key items that, if acted upon quickly, can position Ireland to deliver 5 GW of offshore wind by 2030, thereby reducing carbon emissions and increasing energy security, while also creating an industry to deliver long-term enduring economic and social benefits to the State.

The first item is that we must enable floating offshore wind projects now. The 2020 programme for Government identifies a potential of at least 30 GW of floating offshore wind by 2050. ESB and other industry players are currently developing floating offshore projects off the Irish coast. These projects can be delivered before 2030. While fixed bed wind farms on the east coast will make up the bulk of capacity delivered in Ireland by 2030, ESB believes floating offshore wind farms will be required in delivering the national target of 5 GW by 2030. Specifically, we believe Ireland needs a ring-fenced auction for 1 GW of floating offshore wind now to enable it to reach the 5 GW target for renewables by 2030.

The second item is to utilise the existing grid network as efficiently as possible. We believe an essential step to delivering wind of scale is to utilise the existing grid infrastructure as efficiently as possible. One of the most effective ways of doing this is through hybrid grid connection projects. In simple terms, a hybrid grid connection allows two or more forms of generation, say, an offshore wind farm of 500 MW and a conventional power station of 500 MW to share the same grid connection. The key advantages associated with hybrid connections are the cost to the consumer - it drives down costs because it increases competition - and speed of delivery. These are existing pieces of infrastructure that do not require new infrastructure to be built and avoid the challenges in building new transmission infrastructure in Ireland. ESB will be strongly advocating for the use of hybrid grid connection projects now as part of the current consultation process on offshore wind.

The third item is to build early supply chain confidence. ESB welcomes the maritime area planning, MAP, legislation and the decision to have the first offshore wind renewable electricity support scheme, RESS, auction in 2022. These are clear signals to the supply chain industry that Ireland is focused on the delivery of offshore wind in the short term but this momentum needs to be maintained and accelerated if Ireland is to create a supply chain industry in Ireland. Strong consideration should be given to the State procuring greater than 5 GW from the first two offshore RESS auctions to allow for almost inevitable project attrition. We need to commission more than 5 GW to ensure that we actually achieve 5 GW. In addition, a key issue here is building market confidence that a flow of offshore wind projects is envisaged. We believe that Ireland needs a ring-fenced auction for 1 GW of floating offshore wind now. For these reason, we recommend that at least 7 GW in total be procured through the first two offshore RESS auctions, of which at least 1 GW should be floating offshore wind. This approach and timeframe would position Ireland strongly to develop local supply chain job capabilities as opposed to those jobs being created elsewhere.

The fourth item is to set up Ireland for hydrogen production and storage. As part of ESB’s strategy, we will achieve net zero by 2040. Green hydrogen production will be a critical part of this strategy, requiring large-scale offshore wind capacity and ultimately, a major investment in floating offshore wind. It will also require the development of a hydrogen economy. ESB is initiating a number of hydrogen lighthouse projects to develop its hydrogen capability. In particular, Green Atlantic at Moneypoint will be a major step in growing the hydrogen economy but broader industry and State support will be required to develop an industry of scale in Ireland.

In conclusion, to create a secure, resilient, affordable, decarbonised energy system, we will need considerable build-out of floating wind technology, hydrogen production and large-scale energy storage. ESB intends to play its role in this vision across a range of wind farm projects. As part of the Green Atlantic at Moneypoint project, we intend to transform Moneypoint into a renewables hub encompassing a 1.4 GW floating offshore wind farm, hydrogen production and storage facilities, a hub for offshore wind construction and other renewable technologies. The potential economic impact of the project and others like it are significant.

Crucial to Ireland realising its offshore potential will be developing supply chain confidence, utilising the existing grid as efficiently as possible through the inclusion of hybrids, procuring at least 7 GW from two offshore RESS auctions, promoting the delivery of floating offshore wind by 2030 and incentivising the production of green hydrogen to serve domestic and international energy needs. These steps, if implemented in the short term, can be transformational for Ireland.