Dáil Éireann Debate, Thursday - 7 April 2022
102. Deputy Neasa Hourigan asked the Minister for the Environment, Climate and Communications the steps he is taking to ensure Ireland delivers on the 5 GW target for offshore wind; if Ireland needs to be even more ambitious in order to support Europe weaning itself off fossil fuels; and if he will make a statement on the matter. [18848/22]
Amharc ar fhreagraThe Minister touched on this issue in some of his replies to previous questions, but I will ask him about the steps he is taking to ensure Ireland delivers on its 5 GW target for offshore wind energy. Should we be even more ambitious to support Europe in weaning itself off of fossil fuels?
We are being ambitious. We have to achieve what was set out in the programme for Government, that is, at least 5 GW of offshore wind energy generation by 2030. The programme for Government commits to developing a longer-term plan to harness the estimated 30 GW of wind energy that could potentially be tapped into in our Atlantic waters.
The Maritime Area Planning Act 2021 provides the legal underpinning for this new planning and development system, which will balance the harnessing of our offshore potential with the protection of our environment. On 25 April, the application window for maritime area consent, MAC, applications under the new marine planning regime will open for a set of pre-qualified projects. The first MACs are expected to be granted in the second half of this year. In tandem, my Department is designing a pathway, based on consultation feedback, for a second batch of projects to progress through the new consenting system upon the establishment of the maritime area regulatory authority early next year. Work on a revised offshore renewable energy development plan is currently in progress. This plan will set out the pathway for the development of offshore renewable energy beyond 2030.
As I have said, we are establishing a cross-departmental offshore wind delivery task force to drive delivery. Its work will include identifying the supporting infrastructure we will need and supply chain opportunities for Ireland's offshore wind industry.
The case for ambition in this area is that we are not the only one in this business now. We are actually playing catch-up with some other countries. The UK has already deployed approximately 14 GW of offshore generating capacity and just announced yesterday that it is accelerating its ambition and raising its target from 40 GW by 2030 to 50 GW. Our German colleagues are out in the North Sea already. Because of Germany's need to switch away from Russian gas, it is planning to increase its target from 30 GW by 2030 to 70 GW. Belgium has also revised its plan and is now aiming for 8 GW rather than 2 GW by 2030. I am just making the point that we are in the north-west European regional electricity market. Cables, turbines and so on will all have to be shipped to these various different countries so we have to be quick and ambitious if we are to be part of that shift and change.
I thank the Minister for his reply. It is encouraging to hear of the volumes we are now generating in the context of what our European neighbours are doing. Ireland is well positioned in Europe to be a leading light in this regard. Of course, we should have been moving on this years ago and ramping up over the last decade. Our offshore wind resources are by far enough to comfortably satisfy our electricity needs. The Minister will be aware of several industry insiders who have argued that we should increase our ambition even further. Given the number of projects at various stages of planning at this point in time and the potential total capacity of 29 GW or 30 GW, which the Minister mentioned, it seems that the target of 5 GW by 2030 could perhaps be increased. The current target represents the minimum of what we would do if we were serious about tackling the climate crisis, securing Ireland's energy future and protecting ourselves against the geopolitical threats on the European Continent we are living with at the moment. The past few months have shown that we need to look at this matter through that prism.
We could be more ambitious, and we need to be. The real issue is delivery. One of the ways to deliver is through regional co-operation. I mentioned that many other European countries are now involved in a massive expansion of offshore wind plant. It is not just happening in Europe, but also in America, Asia and everywhere else because it is one of the cheapest and best sources of power we have. We happen to hold the presidency of the North Seas Energy Cooperation group this year. This is a group of nine countries that have signed a memorandum of understanding on working collectively to tap into this offshore resource. I hope that we will be able to get the UK included in that group. It was in the group originally, before Brexit. It is important that the UK is also part of our regional plans. Part of the planning in this respect should involve common organised procurement systems for shipping, cabling, turbines and electrolysers to generate hydrogen from this energy when it gets to shore. I am working with my German, French and other European colleagues in the North Seas Energy Cooperation group to see how that can be managed to aid in this acceleration.
I will touch on the issue of LNG. As a source of energy, it is not particularly cost-effective and it would be economically short-sighted to introduce it. We should also consider the impacts on communities of unconventional gas extraction methods such as fracking and the impacts on communities where LNG terminals are located, which is an issue we very rarely talk about in this country. The industry is very dangerous and polluting to the local area. Multiple studies, including studies by Gas Networks Ireland and EirGrid, have found the existing gas infrastructure to be capable of meeting future demand, even in the event of extreme supply disruption. LNG terminals would also be a significantly costly investment in a fuel we are planning to rapidly phase out. Does the new European agreement with the US create a difficulty for the Government's current position on this matter? Will the Minister make a statement on his current position on LNG infrastructure?
The Minister will be aware that there has been lively debate on this matter within the Joint Committee on Environment and Climate Action under its Chairman, Deputy Leddin. I would like to ask the Minister a couple of questions. When does he believe it will be appropriate to have a protected auction for floating wind energy generation capacity? When does he think it would be appropriate for Ireland to develop a hydrogen strategy? What is his view on the attitude of the Commission for Regulation of Utilities, CRU, which has indicated that LNG could be part of a strategy to develop a hydrogen sector and that we should not close our minds to it?
Following on from some of Deputy Hourigan's remarks, I have a query on the supply chain after 2030. Notwithstanding what certain industry experts have said, it is abundantly clear that a target of 5 GW is achievable, if difficult. However, given the competition we will face in the race to obtain the necessary components for the offshore wind energy sector post 2030, should we start looking at incentivising the creation of a domestic industry to supply this sector? How would we do that? Has the Minister considered the matter?
I will try to answer those various questions in the short time I have.
In response to Deputy Hourigan, I can say that the EU-US agreement does not impinge on us or force us in any direction. We have to make our own strategic decisions based on our own energy modelling and assessment. We always work in European co-operation, but in gas we are separated in effect from the European grid gas connection system because we are on the far side of the UK.
On Deputy Bruton's question on the auction for the protected quota for floating offshore wind, in some ways it comes to his second question. I expect that that will come in phase 2. As I mentioned earlier, the first phase is the relevant project. I expect that the auction process for the second phase will be up and running, if not completed, within the lifetime of this Government. That is the sort of scale we need to be able to deliver before the end of the decade, and it must be before the end of the decade. We can and should be much more ambitious. We will need to progress the hydrogen strategy this year. It is a very complex area that is evolving. The best analysis I have is that industrial applications will probably be received first. It is a question of whether we convert to hydrogen or ammonia. There are various other mechanisms. It could be an export opportunity for the country. The exact mechanism in that and the exact mechanism of the gas network, including how it is transmitted and stored, is the subject of the hydrogen review and the wider energy security review.
Lastly, in response to Deputy Farrell, I agree with him that the supply chain option for us, when we move to that floating offshore wind, is where it really scales up. I expect that the deep sea ports, including those in Cork, Shannon Foynes, Belfast and Derry, and other ports where there is large energy infrastructure and deep-water harbour facilities, are where we should be looking - the task force will be looking at it - at the manufacturing as well as deployment as a major industrial opportunity for our country.
