Mr. O'Hora, the European Union has recently raised its targets for renewables. By 2030, 45 percent of gross final energy consumption is to come from renewables. What targets has Ireland set itself? Do they go beyond the EU targets?
Ireland wants to increase its share of electricity from renewables to 80 percent by 2030 and stop generating electricity from coal and peat. This is to be achieved through 9 gigawatts (GW) of onshore wind, 8 GW of solar and at least 7 GW of offshore wind. 2 GW of offshore wind power is earmarked for green hydrogen. Offshore wind breaks down as follows: 5 GW of offshore wind energy (OWE) by 2030 and an additional 2 GW of floating OWE to be developed by 2030. The total target for OWE increases to at least 37 GW by 2050. These renewable generation targets will not only reduce electricity emissions, but also contribute to the further electrification of transport and heat supply.
How far has Ireland come in meeting these targets?
Ireland recently completed its first support program for offshore renewable electricity. This auction-based process invites renewable energy projects to submit bids to obtain contracts to supply electricity at the bid price over a 20-year period. The auction was highly successful, resulting in one of the lowest prices in the world in the offshore wind market. Over 3 GW of capacity was procured from four offshore wind projects, which will provide over 12 TWh (terawatt hours) of renewable electricity annually. In addition, local communities will benefit from the required provisions for the Community Fund, which will total EUR 24 million annually over the 20-year period.
What policies and incentives is Ireland using to drive the energy transition?
The following six policies support the energy transition in Ireland:
Offshore Wind: Ireland has announced a national industrial strategy for offshore wind. The Irish Offshore Energy Program includes a target of 5GW of offshore wind by 2030 and an additional 2GW of floating offshore wind under development by 2030. This strategy is being developed in consultation with the relevant ministries, agencies and industry to ensure that Ireland fully exploits the value of both the supply chain for the creation of a large scale OWE sector and the market pathways for this renewable energy, and to support the further development of offshore wind.
Buildings & Retrofit: The Irish government has committed to retrofitting 500,000 homes by 2030 (including an increase in funding under the National Development Plan, particularly for free retrofits for low-income households) and installing 680,000 renewable heat sources in new and existing residential buildings. All new residential buildings will be designed and built to the Low Energy Building Standard by 2025 and to the Zero Emission Building Standard by 2030.
Support Scheme for Renewable Heat (SSRH) : The main objective of the SSRH is to contribute to Ireland's renewable energy targets while reducing greenhouse gas emissions. The SSRH includes an installation grant for heat pumps and operating support (an ongoing payment for up to 15 years) for biomass and anaerobic digestion (biogas) heating systems. The SSRH was developed to incentivize an additional 3% of heat consumption in Ireland to come from renewable sources. The current National Development Plan allocates €300 million for the implementation of the SSRH over the period to 2027.
Microgeneration scheme: all renewable generators that feed electricity into the grid will now receive a payment, known as the Clean Export Guarantee (CEG), regardless of which energy supplier they have a supply contract with. The scheme helps households and businesses develop renewable energy generation for self-consumption, while allowing payments for excess electricity that is fed into the grid. The scheme targets 380 megawatts (MW) of installed capacity for microgeneration, which will contribute to our overall renewable energy target.
Renewable Heat Obligation Scheme: In order to increase the share of renewable energy in Ireland's heat sector, the Irish government has decided to require the heat sector to include renewable heat by 2024. This obligation will provide further incentives to suppliers of all fuels in the heat sector to ensure that a certain proportion of the energy supplied is renewable.
Power Purchase Agreements for Businesses: This plan contains seven core principles developed to ensure that corporate electricity procurement contributes effectively and efficiently to Ireland's climate and renewable energy goals.
What is the level of acceptance by the affected population for major infrastructure projects, be it the construction of wind and solar or battery farms, new power lines or green pipelines?
Studies have shown that acceptance of major infrastructure projects is quite high. For example, a survey by the Environmental Protection Agency (EPA) found for the fourth year in a row that climate change is seen as Ireland's most pressing environmental issue, with 73% of adults saying they have already taken steps or made personal changes to help the environment. In addition, a 2021 ESRI report found that more than three-quarters of respondents are positive about wind turbines.
Are you also pursuing a strategy to export renewable energy, be it electricity or green hydrogen, in the future - and to where?
With the large amounts of offshore wind available in Ireland, we are in an excellent position to become energy exporters. Ireland will need 50 terawatts of electricity at the peak of demand. However, with the planned expansion of renewable energy projects, Ireland could generate 55 terawatts by 2030. This additional power could be exported via green hydrogen or as electricity through the Celtic interconnector between Ireland and France. The interconnector project is scheduled for completion in 2026 and will allow 700 MW of power to be transferred between the two countries and provide a more secure power supply.
Do you also see an opportunity to develop Ireland into a major hub in the manufacturing of renewable energy technologies, such as battery cells, photovoltaic modules and cells, or wind turbines?
The green economy is very important to Ireland, and we are actively working with renewable energy technology manufacturers and researchers to develop this offering. We believe Ireland's research ecosystem will be invaluable to companies looking to drive innovation in their manufacturing. In addition, Ireland has an interconnected ecosystem that makes it a prime location for testing and proving climate change technologies. The country also leads global scientific rankings for the quality of scientific research, with strong links between industry and academia, and has the highest number of STEM graduates* per capita in the EU among 20-29 year olds.
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Decarbonization is also a priority research topic that is now integrated into most competitive public funding in Ireland. Renewable energy, energy storage and sustainability are common themes in many Irish research centers, including:
MaREI: marine renewable energy technologies and test facilities, e.g., offshore wind, wave and tidal energy.
AMBER: Materials research, including battery electrodes and lithium-ion batteries.
As renewable energy production increases in Ireland, the country is potentially becoming a very attractive location for green manufacturing. The well-educated Irish workforce also benefits from ongoing training opportunities offered by organizations such as Skillnet and Springboard, so our skills in renewable energy technologies will continue to grow.
What are the remaining key hurdles and challenges for Ireland's energy transition policy?
The transition to fully renewable energy will undoubtedly present many challenges. Our National Climate Action Plan outlines the steps we need to take to achieve this transition. Ireland has enormous potential for renewable energy, and although there have been some hurdles, such as the delayed hydrogen strategy and the deployment of offshore wind, we are confident that Ireland will meet its renewable energy targets and successfully transition to renewable energy.
The interview was conducted by Hans-Christoph Neidlein
