Before considering the study in detail, it is important to know where we are today and where we will need to be by 2020. The IWEA has carried out an analysis of the most recent demand reduction and what megawattage must be connected to meet the 2020 targets. That megawattage is currently set at approximately 6,250 MW, of which some 1,077 MW has been installed and some 1,450 MW is contracted for grid connection under gate 2. A further 3,900 MW has been identified for gate 3 as awaiting grid connection. The connection offers will be sent at the end of this year and will take approximately 18 months to issue.
The combination of this megawattage will bring us to our 2020 target, but it is important to note that more than 4,000 MW, a number that is increasing every day, lies outside gate 3 and is awaiting grid connection. It is an opportune time for our office to consider our post-40% vision.
The study focused on jobs and investments in the wind energy industry up to 2020. It was the first major study to be compiled on the opportunities operating in the island-wide industry. We commissioned Deloitte to conduct the study and it was launched on 15 June, which was global wind day. The study found that the island's wind energy sector is capable of supporting more than 10,700 jobs, including more than 7,000 in the construction sector. It will attract more than €14 billion in investment. However, only 35% of investment would be retained in the local economy because the turbine manufacture and installation aspects would go overseas. As such, €5.1 billion would be retained, €4.3 billion of that in the Republic.
The study also found that employment numbers are widely dispersed, focusing mainly in Connacht and Munster where our strongest resources are. It also identified other opportunities that could not be quantified at this point. Work is ongoing and research has been carried out in that respect. There are many opportunities in grid development upgrade works in the Republic and the North, such as in terms of grid 25 and the delivery of infrastructural upgrades.
There is major potential in energy exports linked to our development of interconnectors between Ireland and Wales. There are also major opportunities in the integration of ICT and energy, linked to smart metering. Much research is being carried out on storage. We must be thinking about post-40% and there is much research on pump storage and compressed air storage. There is an opportunity there and in demand side management and electric transport. There are many initiatives in respect of this by the ESB and other parties. These are at the early stages and cannot be quantified in this study.
The study identified several challenges and highlighted solutions required to meet the 2020 target and realise the opportunities identified. Grid availability is one of the main issues. Typically, grid access is limited in areas where we have a high wind resource. Getting significant grid into these areas could take seven to ten years to develop. The provision of grid is one of the largest obstacles facing wind energy developers, a point recognised by the study.
The shortage of experienced personnel is another area of concern. The pool of experienced people available is limited and, as a sector in Ireland, it is quite young. As the sector develops in other areas we will have issues in retaining and attracting experienced personnel. The study identified training and development of our local resources as something we should focus on. The lack of awareness of opportunities was identified, particularly in the secondary education area, where people were not aware of the opportunities despite great interest in the green economy, wind energy and other renewables. The low number of students in courses such as electrical engineering and electronic engineering is having an impact on the sector and must be addressed as we increase development.
A financial framework is a major issue. In the current financial climate finance is hard to come by. The current financial framework is such that most of the risk is allocated to the developer. The study identified delays in connection and changes to the regulatory framework as causes for concern. Offshore operations are another issue. Given the location, there are unique challenges that apply to offshore but not onshore. These include weather, access and the tidal stream. These make the projects more difficult. The study identified issues with respect to planning and its complexity that cause delays and should be addressed. That is a summary of the key findings.