Ireland is ‘closed for business’ declares ocean energy body
Ireland is in danger of losing out to Scotland in the highly lucrative and jobs-rich ocean energy industry unless government steps up its commitment to provide the necessary support, according to the body representing wave and tidal interests.
Reacting to news that Scotland had recently been ear-marked for wave energy projects in the order of 50 megawatts worth €250m of investment, the Marine Renewables Industry Association (MRIA) declared in a statement that ‘astute political management, ambition and sheer hunger for jobs has seen [Scotland] emerge as the clear winners of the first round in the battle to dominate the sector’.
Political will and urgency
Nevertheless, and despite this set-back, MRIA chairman, Peter Coyle indicated Ireland could still become a major European ocean energy producer:
‘Based on our natural advantage of a better wave energy resource, world-class R&D facilities and some of the world’s leading marine energy developers, Ireland could still win the second round of ocean projects and become the world centre of this job-intensive new industry if political will and urgency are shown,” he declared.
Highlighting the recent report by consultants SQW which was commissioned jointly by the Belfast and Dublin governments, Coyle predicted that if the Irish government ‘puts the necessary structures in place’ it stands to gain up to €10 billion in income, and as many as 52,000 jobs from marine renewable by 2030.
Three phases
He explained that the development of a global industry would roll out over three stages:
‘Stage one focuses on identifying and developing the most suitable technology and infrastructure to harness wave energy using full-size devices in small-scale pilot projects of 10MW.
‘In stage two, growth and investment will see the most viable technologies scaled up and ready for full-scale commercial deployment, again using full-scale devices but this time on medium-scale wave farms of 50-100MW. Stage three is when the technology is ready to roll out all over the world.’
He added the reality was that whoever wins ‘round two’ will become the global centre for wave energy, adding that the two companies – Aegir Wave Power Ltd, a subsidiary of Swedish energy giant Vattenfall, and Aquamarine Power, involved in the recent Scottish move – could just as easily have invested in Ireland.
‘They had previously expressed a strong desire to develop wave farms in Ireland; but today that it is currently impossible for any major developers to locate here and to create jobs in any significant way, as from a Government point of view, Ireland is simply ‘not yet open for business’.’
He added that the key issues stalling ocean energy development here could be resolved ‘with very little financial input from the Irish government’.
And to highlight just how quickly and efficiently Scotland published and executed a process to secure wave farm sites, he said that last month’s revelation was part of a second leasing round for Scotland and it was noteworthy that a first leasing round in Northern Ireland was about to get underway.
Mr Coyle added that the MRIA’s action programme for the next five years would focus largely on administrative actions which “do not cost money”.
The steps are: ‘To set up modern consenting procedures, hold an initial leasing round (which will bring cash into the Exchequer), plan grid development, put civil service resources into the area [of marine renewables].’
He hopes also that the Minister for Communications, Energy and Natural Resources, and the Minister for Agriculture, Food and the Marine, will meet soon ‘to discuss the speedy roll-out of an action plan’.
Report criticised
Earlier this year Mr Coyle criticised the ESRI publication A Review of Irish Energy Policy* claiming that it failed to grasp the potential contribution of ocean energy – and ‘that it failed to grasp three critical aspects of ocean energy in Ireland’.
He pointed out then that Ireland had ‘the most energy intensive wave resource in the world as well as a notable tidal resource – a natural advantage that has been built on by the development of the world’s best research and development facilities for ocean energy’.
Listing progress here he noted that the full-scale test site off Belmullet, Co Mayo; the existing quarter-scale test facility in Galway Bay; the testing tanks and other facilities at MERC in Cork, and the facilities in Queens University Belfast were all evidence that major progress was being made in terms of harnessing sustainable energy for Ireland.
‘The creation of the world’s largest single ocean energy research community at University College Cork is a further feature of the Irish scene, while Irish companies such as Wavebob, Ocean Energy and Open Hydro account for a substantial portion of the international Premier League of Ocean Energy companies,’ Coyle declared.
The MRIA chairman nevertheless welcomed the ESRI Report as ‘a valuable contribution to a key debate’ adding that his Association looked forward to ‘opening a dialogue’ with its author, Professor John Fitzgerald.
He warned however that if the Report’s views were implemented they ‘would stop the industry in its tracks as they would give a hugely negative signal to all involved with Irish ocean energy’.
The Department of Communications, Energy and Natural Resources respond to questions from Inshore Ireland:
Is the Department still determined to meet the 500MW wave and tidal target for 2020 set out in the Ocean Energy Strategy?
In Ireland’s National Renewable Energy Action Plan (NREAP), available on the deptartment’s website, which was submitted to the European Commission in July 2010, 75MW of ocean energy was included in the Table 10 modeled electricity scenario.
The 500MW was included in a non-modelled export scenario. Wave and tidal energy is at the R&D stage globally and is not yet commercially viable. The wave test site planned off Co Mayo, when built in a few years time, will be used to test pre-commercial prototypes. Currently quarter–scale prototypes (without grid) are being tested in Galway Bay.
An explanation on the Table 10 modelled scenario from the NREAP is as follows:
The data in this modelled scenario is influenced of necessity to a significant degree by planned Gate 3 generation. Technologies in the R&D category (e.g. wave and tidal) are not included in the Gate. However as noted at 4.2.6 (b), CER 09/099 is a new policy which sets out how small, renewable, low carbon generation can access the grid outside the Gate 3 process.
Possibilities using CER 09/099 are reflected only to a limited degree in the modelled scenario, hence the low figures for certain technologies. Reports on the NREAP will be submitted on a biennial basis and the modelled scenario can be updated at that time to reflect technology and other developments that may occur in the interim. In the meantime, the non modeled export scenario version of Table 10 which follows offers an alternative development trajectory, without the constraints built into the modelled scenario.
Is the Department going to commence a study of the potential to export renewable power, such as wave and tidal to the UK?
No. The department’s draft Offshore Renewable Energy Development Plan and SEAI Environmental Report available on our website already indicates the potential resources. It is however our intention that there will be a tender for a study to examine the cost-benefit analysis for Ireland engaging in renewable export over the next decade.
When will the Department publish its Offshore Renewable Energy Development Plan?
The public consultation closed on May 6 and we received over 60 submissions. As a result, it will take us some time to go through them all. It is likely to be July or September that it is finalised.
*’A Review of Irish Energy Policy’
by John FitzGerald
ESRI RESEARCH SERIES NUMBER 21
April 2011 is available to download from www.esri.ie
