Oireachtas Joint and Select Committees

Tuesday, 1 March 2022

Joint Oireachtas Committee on Climate Action

Energy - Ambition and Challenges: Discussion

Mr. Noel Cunniffe:

The delays are seen right across the energy infrastructure – not just onshore wind, but also solar and the electricity grid. We all need to get behind delivering EirGrid's strategy for grid infrastructure. It is essential for our country that we see it delivered. I am sure the issue the Deputy raised has some impact, but we are still missing our statutory timelines by a factor of two or three.

We estimate that the lack of availability of grid infrastructure in Ireland is adding approximately 27% to the price of our renewables compared with jurisdictions that have seen a significant investment in grid infrastructure over the past ten to 20 years.

The decision not to index link our renewable auctions has led to a 15% increase in our prices. Industry effectively has to guess the inflation rate over the next 15 to 20 years of a project's life cycle instead of it being index linked, which is the norm in many other jurisdictions.

We were asked for our opinion on the 1 GW auction for floating offshore wind. A consultation on phase 2 projects is under way and this is one of the main questions that is being debated among our members. The consultation is closing next week. Our position now is that floating wind energy can play a part in delivering our 5 GW target for 2030. We see it being a major opportunity for Ireland as we move into the 2030s.

There were questions on marine planning and the environmental impacts. I might hand over to Mr. Moran.