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IWEA response to Government Green Paper on Energy

Thursday 28 December 2006

Targets for the growth of renewable energy in Ireland must be set without any qualifications or restraints, the Irish Wind Energy Association (IWEA) has told the Government in response to the recently published Green Paper on Energy.

In a detailed submission, the IWEA stated:  “We note that the Green Paper qualifies the 2020 renewables target by stating it is subject to ‘technical considerations’. Such a disclaimer on a policy target invalidates it completely.

“Consequently, this raises doubts as to whether there is any genuine policy commitment to achieving such a target. Accordingly, the IWEA calls for targets to be set without qualifications. This will signal a genuine commitment to progress and provide a much-needed boost to the renewables sector.”

The IWEA submission adds:  “We believe that the White Paper should include a commitment by Government to adopt the 2010 and 2020 targets as minimum goals. To reinforce these targets, the IWEA suggests that they be adopted as corporate goals by the Department of Communications, Marine and Natural Resources, Sustainable Energy Ireland, EirGrid and ESB Networks and included in their relevant Statements of Strategy.

“The single most important issue regarding targets for renewable generation for the
IWEA is their credibility and impact. Targets have little impact if they are not credible or do not represent a committed policy goal. If targets remain lip service rather than real ambitions for achievement they will simply be a distraction from the real issues.”

The Government’s Green Paper – “Towards a Sustainable Energy Future for Ireland” – sets targets for the proportion of electricity produced from renewable sources at 15 and 30 per cent by 2010 and 2020 respectively.   The Green Paper acknowledges that the bulk of renewable energy will be from the wind sector.

The contribution of wind energy to electricity generation has grown rapidly in recent years and it is estimated that a total of 672 MW of wind energy capacity is currently installed.  While the expansion of capacity in Ireland has been impressive, Ireland still lags behind in European terms which, according to the IWEA,  indicate that there is no guarantee of continued progress on this scale, unless market conditions are right.

The IWEA points out that achievement of the 2010 target “is crucially dependent on the removal of existing barriers to wind farm development” warning that the potential of wind power adding “will not be realised under current market conditions.”

At present, for many wind farm projects, the risks, financial and otherwise are too high. As a result, many of the potential projects may falter.

The sources of these risks, the IWEA points out, are:
· relatively low feed-in tariffs available
· escalation in the underlying costs of wind farm development
· delays in getting grid connections and
· difficulties of the planning process.

The IWEA submission makes the case that wind energy generation needs to receive equal treatment to established fossil fuel generation in the Irish electricity market, if penetration targets are to be reached.     “The IWEA is strongly of the view that wind energy currently does not enjoy such a level playing field and is at a competitive disadvantage.”

It adds:  “Given the importance of wind to Ireland’s renewable mix, any unnecessary constraints on the wind energy sector will seriously limit Ireland’s success in reducing dependence on imported fossil fuel.”

The development of wind energy, the IWEA says, has also been inhibited by a series of myths that need to be challenged:
· It is argued that there is a technical limit to wind energy on the grid and that variability is an insoluble problem, but a number of international studies show otherwise.
· The myth that wind is unduly expensive is shown to be erroneous by the fact that wind is currently keeping the Public Service Obligation on consumers’ bills at zero.
· The myth that renewable energy cannot meet all of our energy needs is shown
            to be false by the resource work of ESBI.

The IWEA points to a study by Goodbody Economic Consultants which concluded that wind energy is the best option for ensuring security of supply and meeting Ireland’s energy demands into the future.    The Goodbody report pointed out:  “The myth that wind is unduly expensive is shown to be erroneous by the fact that wind is currently keeping the Public Service Obligation on consumers’ electricity bills at zero.”

IWEA Chairman Mr Tim Cowhig, said that the final White Paper to be produced by the Government must have a greater focus on renewables, “The IWEA welcomes the government target of 30 per cent of our energy from renewable sources, but the targets set in the Green Paper should represent commitments and be set as a minimum and must be reached. As a result, the 2020 targets should not be subject to technical constraints as indicated in the Green Paper.”

“Ireland needs to be ambitious when it comes to our energy crisis” according to Mr Cowhig,  “There is an opportunity for Ireland to invest is a very real and substantial way in renewable energy and to make Ireland energy independent with 100% of supply from renewable sources.”