Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various...

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Offshore Wind in Ireland DAVID CONNOLLY, CEO, IWEA

Transcript of Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various...

Page 2: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

IWEA & Our ~120 MembersAll-Island Network for Onshore & Offshore Wind

Members from Various SectorsRepresent ~80% of Existing Wind Energy in Ireland

– Wind farm developers

– Turbine manufacturers

– Construction companies

– Supply companies

– Accountants

– Insurance

– Consultancy

– Legal firms

– Banks

– Small local businesses

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Page 3: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

10 Committees within IWEA:https://www.iwea.com/committees

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Page 4: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

IWEA Offshore Committee:~20 Members & Chaired by Peter Lefroy, Innogy

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Page 5: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Status of Wind Industry

Page 6: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

For the first nine months of 2018, wind supplied on average 27.9% of electricity demand compared with 25.7% in 2017

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Graph: Martin Howley, SEAI

Page 7: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Wind Energy Aiming for 4000-4400 MW by 2020Expected to be 32% RES-E (Target is 40% RES-E)

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Installed Wind Power in ROI (MW)

Per Year Total

2018:- Built = 152 MW- To Build = 184 MW- Potential Build = 336 MW- Max Total = 3719 MW

2019:- Potential Build = 559 MW- Max Total = 4278 MW

Wind in 2020 will be ~4100-4400 MW

(~7% of 16% RES)

Page 8: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Replicating Success for Offshore

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Page 9: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Ireland’s Offshore Potential:SEAI Predict ~30 GW

KEY BENEFITS IN IRELAND

Large Sea Area/Potential

High Wind Speeds

High Capacity Factors

Sites Located Close to Shore

EU Benefits from Irish Location

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Page 10: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Pillars of Offshore Wind to Deliver

Offshore Wind Industry

Target: 55% RES-E?

(70 by 30 - Energy Systems

Committee)

Financing: RESS/cPPAs

(Positive Developments –

Markets Committee)

Grid (Need a

connection regime)

Planning/ Consent

(Need to Process

Consent ASAP)

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Page 11: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Pillars of Offshore Wind to Deliver

Offshore Wind Industry

Target: 55% RES-E?

(70 by 30 - Energy Systems Committee)

Financing: RESS/cPPAs

(Positive Developments –

Markets/Offshore Committee)

Grid: ECP2?

(Need a connection regime –

Grid/Offshore Committee)

Planning: Foreshore/MAFA/MSP

(Need to Process Consent ASAP -

Offshore Committee)

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Page 12: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Renewable Electricity Support Scheme

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Page 13: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

RESS High Level Design(Clarity required on application to offshore)

• 2-way CfD

Auction structure is pay as clear:

• Generation diversity encouraged through Technology Caps within Price Ranges

Technology Neutral Auctions:

• Planning consent and grid offer

• Place bid bonds

To Participate at Auction:

• €2/MWhr Community Benefit

• Mandatory Community Investment Offering

• Ring-fenced volumes for community-led projects

Community Engagement:

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More Details: View IWEA Video with

Overview of RESS on website under

Markets Committee

Page 14: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Auction Design

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(~250 MW)

(~750 MW)

(~750 MW)

(~1000 MW)

(~625 MW)

TOTAL13,500 GWh: ~3375 MW Offshore

(~4750 MW Onshore)

RESS to Support 55% RES-E by 2030(can only increase)

Page 15: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Opportunity for Offshore in RESS Auctions

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Sufficient Volume Competitive Price

Page 16: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

~5000 MW of Offshore in

Pipeline in Ireland, Sept 2018

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Page 17: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Prices Decline As Industry Develops

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Prices Dropping in Other Auctions

Page 18: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Offshore Turbines Ordered now >10 MW

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Offshore Turbine Orders

Page 19: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Recommendations to Accelerate the Offshore Wind Sector in Ireland & Minimise Costs

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PLANNING

GRID

RESS

TARGET

RESS

COORDINATION

Page 20: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Creating More Volume!INCREASING THE OPPORTUNITY FOR OFFSHORE WITH A TARGET OF 70% RENEWABLE ELECTRICITY BY 2030

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Page 21: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

IWEA Energy Vision Calling for 70% Renewable Electricity by 2030

1. Detailed modelling by Baringa, showing how one 70% RES-E scenario is possible by 2030

2. Cost neutral for the consumer if wind power has an LCOE of ~€60-70/MWh

◦ The wind industry will achieve its target

3. Requires an ‘energy system’ approach

◦ Interconnection, heat pumps, electric cars, etc

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Launched in October with 8

Other Associations

Page 22: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

100% Renewable Energy in Ireland Requires >20 GW of Offshore

http://dconnolly.net/greenplanireland/

Page 23: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

National Energy & Climate Plan• Will set Ireland’s 2030 renewable

energy target◦ Currently 55% being proposed

• First draft due by end of 2018

• NECP Consultation open now: https://www.dccae.gov.ie/en-ie/energy/consultations/Pages/Initial-Consultation-NECP-2021-2030.aspx

• Respond by Promoting 70% renewable electricity by 2030

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202040% RES-E

203055% RES-E

Current Proposal

Page 24: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

IrelandLaggards or Leaders?

•70 by 30 - AN OPPORTUNITY FOR LEADERSHIP:

◦ Ireland will set a 2030 Renewable Energy Target in our ‘National Energy & Climate Plan’ due by end of 2018

◦ Call on the Government to at least match the EU’s 2030 target of 32% RES, supported by a 70% renewable electricity share

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Page 25: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Next IWEA Offshore Event:14th Nov

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https://www.iwea.com/learning-hub/1087-wind-power-offshore-consenting-and-development-2-day-course

Page 26: Offshore Wind in Ireland - IWEAAll-Island Network for Onshore & Offshore Wind Members from Various Sectors Represent ~80% of Existing Wind Energy in Ireland –Wind farm developers

Thank You• Speakers

• Sponsors

• Delegates

• IWEA Offshore Committee

• IWEA Members

• IWEA Staff

• NOW Ireland

• Sustainable Nation Climate Week

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