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Minister Ryan Welcomes European Investment Bank Support for Offshore Renewable Energy (ORE) Port Investment

12th September 2024
Minister Eamon Ryan at the Dept. of Transport has welcomed the European Investment Bank (EIB)'s support for Offshore Renewable Energy (ORE) port investment.
Minister Eamon Ryan at the Dept. of Transport has welcomed the European Investment Bank (EIB)'s support for Offshore Renewable Energy (ORE) port investment. Credit: Dept.of Transport

In the offshore renewable sector, Ireland is to be given advisory co-operation between the European Investment Bank (EIB) and the Department of Transport to assess capacity, demand, and financing strategies required for the development of ORE (Offshore Renewable Energy) port infrastructure.

The announcement made yesterday, has been welcomed by the Department, as ORE is crucial for the development, construction, and long-term operation and maintenance of offshore wind projects in Irish waters and economic activity.

While no Irish port has the facilities and capabilities required to support large-scale offshore wind projects at present, a number have the capacity to be transformed over the coming years. Large-scale cost-effective investment is essential to rapidly develop specialist facilities, unlock social and economic development for hinterland energy hubs and harness offshore wind energy.

The new advisory cooperation with the EIB, signed by Minister Eamon Ryan and EIB Vice President Ioannis Tsakiris in Dublin, aims to evaluate the scale and nature of investment needed to upgrade port infrastructure in order to unlock the estimated EUR 30 billion in investment in offshore renewable projects in Irish waters.

Eamon Ryan, Minister for the Environment, Climate, Communications and Transport, said: "Ireland's offshore wind potential is immense, and we are addressing the critical infrastructure needs at our ports to realise this potential. This cooperation with the European Investment Bank is a vital step towards ensuring that our ports can support the ambitious offshore wind projects necessary for a sustainable energy future. This initiative will not only strengthen our renewable energy capabilities but also stimulate regional development and create new opportunities across the country. It also goes hand in hand with our efforts to decarbonise the entire transportation sector with key projects such as MetroLink."

Ioannis Tsakiris, European Investment Bank Vice President, said: "The European Investment Bank is committed to supporting Ireland’s transition to a low-carbon economy. This new advisory partnership with the Irish Department of Transport will help to ensure that the necessary port infrastructure can be developed to unlock offshore wind energy in Ireland. This initiative will play a critical role in helping Ireland meet its renewable energy targets and will contribute to the broader European Green Deal objectives."

Maximising the impact of future port investment

Under the new initiative, experts from the European Investment Bank and the Irish Department of Transport will work together to assess both the expected costs of the necessary infrastructure upgrades and the most viable financing strategies to achieve these investments. The cooperation will also explore opportunities for balanced regional development and the complementary roles of different ports in supporting offshore wind farm construction, ensuring that the benefits of this significant investment are felt across the country.

The new partnership between the European Investment Bank and the Irish Department of Transport marks a significant milestone in Ireland’s renewable energy journey and underscores the importance of strategic investment in port infrastructure to unlock the full potential of offshore wind energy in Irish waters.

The advisory initiative will also involve project-level advisory to five ports around the country that are expected to play a role in the deployment of offshore renewable energy projects. These are representative of a range of characteristics across scale, operations, target market, ownership structure and geographic location. The lessons from the successful development of these ports are expected to act as exemplars for wider offshore renewable energy port infrastructure investment around Ireland.

The development of this port infrastructure is essential to unlock the immense potential of offshore wind power generation for Ireland. The government recognises that this potential can only be achieved with national ambition and with a long-term approach. In this regard the Future Framework for Offshore Renewable Energy and Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy represent the clear strategic vision of the Government to maximise the financial and economic return of offshore renewable energy to the State and local communities.

Unlocking port investment to deliver climate goals

Ireland aims to achieve 80% of its electricity generation from renewable sources by 2030 with 5 GW attributable to offshore wind, and a long-term goal of reaching 37GW by 2050. With Ireland’s sea area being seven times that of its land mass, the opportunity is enormous. Ireland is now looking to the ports to enable the delivery of its climate targets, through the facilitation of the development, construction and long-term operation and maintenance of offshore wind projects.

Ensuring Irish transport investment benefits from pan-European experience

The European Investment Bank has a long-standing history of technical and financial support for Ireland, particularly in rail, electric vehicle infrastructure, and urban transport projects. The Bank has also been a key partner in financing renewable energy initiatives, grid expansion, and other transport projects throughout the country.

Published in Power From the Sea
Jehan Ashmore

About The Author

Jehan Ashmore

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Jehan Ashmore is a marine correspondent, researcher and photographer, specialising in Irish ports, shipping and the ferry sector serving the UK and directly to mainland Europe. Jehan also occasionally writes a column, 'Maritime' Dalkey for the (Dalkey Community Council Newsletter) in addition to contributing to UK marine periodicals. 

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Ireland's Offshore Renewable Energy

Because of Ireland's location at the Atlantic edge of the EU, it has more offshore energy potential than most other countries in Europe. The conditions are suitable for the development of the full range of current offshore renewable energy technologies.

Offshore Renewable Energy FAQs

Offshore renewable energy draws on the natural energy provided by wind, wave and tide to convert it into electricity for industry and domestic consumption.

Offshore wind is the most advanced technology, using fixed wind turbines in coastal areas, while floating wind is a developing technology more suited to deeper water. In 2018, offshore wind provided a tiny fraction of global electricity supply, but it is set to expand strongly in the coming decades into a USD 1 trillion business, according to the International Energy Agency (IEA). It says that turbines are growing in size and in power capacity, which in turn is "delivering major performance and cost improvements for offshore wind farms".

The global offshore wind market grew nearly 30% per year between 2010 and 2018, according to the IEA, due to rapid technology improvements, It calculated that about 150 new offshore wind projects are in active development around the world. Europe in particular has fostered the technology's development, led by Britain, Germany and Denmark, but China added more capacity than any other country in 2018.

A report for the Irish Wind Energy Assocation (IWEA) by the Carbon Trust – a British government-backed limited company established to accelerate Britain's move to a low carbon economy - says there are currently 14 fixed-bottom wind energy projects, four floating wind projects and one project that has yet to choose a technology at some stage of development in Irish waters. Some of these projects are aiming to build before 2030 to contribute to the 5GW target set by the Irish government, and others are expected to build after 2030. These projects have to secure planning permission, obtain a grid connection and also be successful in a competitive auction in the Renewable Electricity Support Scheme (RESS).

The electricity generated by each turbine is collected by an offshore electricity substation located within the wind farm. Seabed cables connect the offshore substation to an onshore substation on the coast. These cables transport the electricity to land from where it will be used to power homes, farms and businesses around Ireland. The offshore developer works with EirGrid, which operates the national grid, to identify how best to do this and where exactly on the grid the project should connect.

The new Marine Planning and Development Management Bill will create a new streamlined system for planning permission for activity or infrastructure in Irish waters or on the seabed, including offshore wind farms. It is due to be published before the end of 2020 and enacted in 2021.

There are a number of companies aiming to develop offshore wind energy off the Irish coast and some of the larger ones would be ESB, SSE Renewables, Energia, Statkraft and RWE.

There are a number of companies aiming to develop offshore wind energy off the Irish coast and some of the larger ones would be ESB, SSE Renewables, Energia, Statkraft and RWE. Is there scope for community involvement in offshore wind? The IWEA says that from the early stages of a project, the wind farm developer "should be engaging with the local community to inform them about the project, answer their questions and listen to their concerns". It says this provides the community with "the opportunity to work with the developer to help shape the final layout and design of the project". Listening to fishing industry concerns, and how fishermen may be affected by survey works, construction and eventual operation of a project is "of particular concern to developers", the IWEA says. It says there will also be a community benefit fund put in place for each project. It says the final details of this will be addressed in the design of the RESS (see below) for offshore wind but it has the potential to be "tens of millions of euro over the 15 years of the RESS contract". The Government is also considering the possibility that communities will be enabled to invest in offshore wind farms though there is "no clarity yet on how this would work", the IWEA says.

Based on current plans, it would amount to around 12 GW of offshore wind energy. However, the IWEA points out that is unlikely that all of the projects planned will be completed. The industry says there is even more significant potential for floating offshore wind off Ireland's west coast and the Programme for Government contains a commitment to develop a long-term plan for at least 30 GW of floating offshore wind in our deeper waters.

There are many different models of turbines. The larger a turbine, the more efficient it is in producing electricity at a good price. In choosing a turbine model the developer will be conscious of this ,but also has to be aware the impact of the turbine on the environment, marine life, biodiversity and visual impact. As a broad rule an offshore wind turbine will have a tip-height of between 165m and 215m tall. However, turbine technology is evolving at a rapid rate with larger more efficient turbines anticipated on the market in the coming years.

 

The Renewable Electricity Support Scheme is designed to support the development of renewable energy projects in Ireland. Under the scheme wind farms and solar farms compete against each other in an auction with the projects which offer power at the lowest price awarded contracts. These contracts provide them with a guaranteed price for their power for 15 years. If they obtain a better price for their electricity on the wholesale market they must return the difference to the consumer.

Yes. The first auction for offshore renewable energy projects is expected to take place in late 2021.

Cost is one difference, and technology is another. Floating wind farm technology is relatively new, but allows use of deeper water. Ireland's 50-metre contour line is the limit for traditional bottom-fixed wind farms, and it is also very close to population centres, which makes visibility of large turbines an issue - hence the attraction of floating structures Do offshore wind farms pose a navigational hazard to shipping? Inshore fishermen do have valid concerns. One of the first steps in identifying a site as a potential location for an offshore wind farm is to identify and assess the level of existing marine activity in the area and this particularly includes shipping. The National Marine Planning Framework aims to create, for the first time, a plan to balance the various kinds of offshore activity with the protection of the Irish marine environment. This is expected to be published before the end of 2020, and will set out clearly where is suitable for offshore renewable energy development and where it is not - due, for example, to shipping movements and safe navigation.

YEnvironmental organisations are concerned about the impact of turbines on bird populations, particularly migrating birds. A Danish scientific study published in 2019 found evidence that larger birds were tending to avoid turbine blades, but said it didn't have sufficient evidence for smaller birds – and cautioned that the cumulative effect of farms could still have an impact on bird movements. A full environmental impact assessment has to be carried out before a developer can apply for planning permission to develop an offshore wind farm. This would include desk-based studies as well as extensive surveys of the population and movements of birds and marine mammals, as well as fish and seabed habitats. If a potential environmental impact is identified the developer must, as part of the planning application, show how the project will be designed in such a way as to avoid the impact or to mitigate against it.

A typical 500 MW offshore wind farm would require an operations and maintenance base which would be on the nearby coast. Such a project would generally create between 80-100 fulltime jobs, according to the IWEA. There would also be a substantial increase to in-direct employment and associated socio-economic benefit to the surrounding area where the operation and maintenance hub is located.

The recent Carbon Trust report for the IWEA, entitled Harnessing our potential, identified significant skills shortages for offshore wind in Ireland across the areas of engineering financial services and logistics. The IWEA says that as Ireland is a relatively new entrant to the offshore wind market, there are "opportunities to develop and implement strategies to address the skills shortages for delivering offshore wind and for Ireland to be a net exporter of human capital and skills to the highly competitive global offshore wind supply chain". Offshore wind requires a diverse workforce with jobs in both transferable (for example from the oil and gas sector) and specialist disciplines across apprenticeships and higher education. IWEA have a training network called the Green Tech Skillnet that facilitates training and networking opportunities in the renewable energy sector.

It is expected that developing the 3.5 GW of offshore wind energy identified in the Government's Climate Action Plan would create around 2,500 jobs in construction and development and around 700 permanent operations and maintenance jobs. The Programme for Government published in 2020 has an enhanced target of 5 GW of offshore wind which would create even more employment. The industry says that in the initial stages, the development of offshore wind energy would create employment in conducting environmental surveys, community engagement and development applications for planning. As a site moves to construction, people with backgrounds in various types of engineering, marine construction and marine transport would be recruited. Once the site is up and running , a project requires a team of turbine technicians, engineers and administrators to ensure the wind farm is fully and properly maintained, as well as crew for the crew transfer vessels transporting workers from shore to the turbines.

The IEA says that today's offshore wind market "doesn't even come close to tapping the full potential – with high-quality resources available in most major markets". It estimates that offshore wind has the potential to generate more than 420 000 Terawatt hours per year (TWh/yr) worldwide – as in more than 18 times the current global electricity demand. One Terawatt is 114 megawatts, and to put it in context, Scotland it has a population a little over 5 million and requires 25 TWh/yr of electrical energy.

Not as advanced as wind, with anchoring a big challenge – given that the most effective wave energy has to be in the most energetic locations, such as the Irish west coast. Britain, Ireland and Portugal are regarded as most advanced in developing wave energy technology. The prize is significant, the industry says, as there are forecasts that varying between 4000TWh/yr to 29500TWh/yr. Europe consumes around 3000TWh/year.

The industry has two main umbrella organisations – the Irish Wind Energy Association, which represents both onshore and offshore wind, and the Marine Renewables Industry Association, which focuses on all types of renewable in the marine environment.

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