Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

The development and operation of wind farms in Ireland require planning permission from the relevant planning authority and, in the case of offshore wind farms, a foreshore lease from the Department of the Environment, Community and Local Government.

They also require an authorisation to construct or reconstruct a generating station and a licence to generate from the Commission for Energy Regulation, CER. In addition, a grid connection from EirGrid or ESB Networks is required to become operational.

Planning and foreshore leasing are, in the first instance, matters between the developer of the wind farm and the planning authority subject to the Planning and Foreshore Acts, including the requirements for public consultation as specified in the legislation. In addition, best practice wind energy guidelines were published in 2006. The Department of the Environment, Community and Local Government, in conjunction with my Department and other stakeholders, is undertaking a targeted review of certain aspects of the guidelines. This review will examine the manner in which they address key issues of community concern to ensure wind energy projects do not have negative impacts on local communities.

In addition, the 2012 Government policy statement on the strategic importance of transmission and other energy infrastructure, published by my Department, emphasises the importance of public and local community acceptance, adherence to national and international standards in designing and constructing energy networks and infrastructure, early consultation and engagement with local communities, and building community gain considerations into energy infrastructure planning and budgeting. Applications for authorisations to construct or reconstruct a generating station and for licences to generate are assessed by the CER ahead of granting or refusing the application. The conditions imposed in the authorisation and the licence must be met by the generator and compliance is monitored by the CER on an ongoing basis. In regard to grid connections, EirGrid and ESB Networks assess applications and make connection offers in line with the appropriate development and roll-out of grid infrastructure.

Additional information not given on the floor of the House

In terms of benefits to the State, wind energy development has been the largest driver of growth in renewable energy. In fact, it will make the greatest contribution by far towards the achievement of the target for 2020 to meet 40% of electricity demand from renewable sources. Failure to achieve our overall renewable energy targets will result in compliance costs and emissions permit purchases. The Sustainable Energy Authority of Ireland has estimated that these could amount to some €100 million to €150 million per annum for each percentage point shortfall in renewable energy and a further €250 million in emissions permit purchases. With regard to taxation, the State benefits from the tax take on taxable profits generated by energy companies. Rates are also payable to local authorities and offshore wind energy project developers pay royalties of 2.5% of total revenue to the Department of the Environment, Community and Local Government under the terms of foreshore leases.

Regarding the potential export opportunity, the memorandum of understanding on energy co-operation that the United Kingdom Secretary of State for Energy and Climate Change, Mr. Edward Davey, and I signed on 24 January will result in the completion of a consideration of how Irish renewable energy resources, onshore and offshore, might be developed to the mutual benefit of the State and the United Kingdom. This will determine whether it is beneficial for both countries to enter into an intergovernmental agreement under the renewable energy directive to provide for renewable energy trading. The amount of energy to be procured by the United Kingdom and the mechanisms for sharing the resultant economic benefits, including an appropriate return to the Exchequer, are matters to be addressed over the course of this year and ahead of signing a potential intergovernmental agreement which would have to ensure no financial cost or risk to the State or Irish consumer.

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