Ireland is making slow but steady progress towards ambitious renewable energy targets, but challenges remain – including a more competitive market for attracting private investment. The latest report from Wind Energy Ireland shows that wind energy supplied 24 per cent of the country’s electricity needs last month, the third best performance for July on record.
According to the Government’s offshore renewable energy targets, the objective is to reach 37 gigawatts of wind energy by 2050, which would be enough to cover by a factor of six the current peak demand for electricity in Ireland.
There is a lot riding on reaching these targets. The goal of a secure, cost-effective supply of energy remains some way off. Senior multinational companies have warned that future investment relies on this. Moreover, if Ireland does not meet EU-agreed CO2 reduction targets from 2030 onwards, it could be liable for billions in fines.
Some of the challenges are homegrown. For example, according to the latest report from Wind Energy Ireland, roughly 14 per cent of the electricity that could have been generated by wind last year was lost due to limited grid capacity. Also, several important wind energy developments have been delayed by planning logjams.
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The Government has earmarked €3.5billion to upgrade the energy infrastructure and reforms to the planning system have improved timeframes on planning applications for wind developments.
It is important that there is continued improvement in both of these areas, as one of the main external challenges is access to funding. Recently, the Danish government had to backstop a $9.4billion rights issue by Orsted, the renewable energy developer, as it needed capital to complete US developments. Donald Trump’s ‘drill baby drill’ approach energy policy has caused many investors to switch from renewables back to fossil fuels.
Ireland needs billions in investment to develop its offshore wind potential. An efficient infrastructure and planning system is essential to attract future investment in a competitive marketplace for funding.
