A recent meeting of the British Irish Council resulted in a significant announcement which could see electricity from Irish wind farms supply the UK market. The deal will see the UK take advantage of Ireland's huge potential for wind-powered generation capacity while Ireland will benefit economically from an increased electricity export potential. The announcement is seen by many in the Irish wind energy industry as a game-changer, and a significant new export opportunity.
The British Irish Council (BIC), consisting of the UK, Irish, Scottish, Welsh, Northern Ireland, Jersey, Guernsey and Isle of Man governments, plays a unique and important role in furthering, promoting and developing links between its Member Administrations through positive, practical relationships and in providing a forum for consultation and cooperation on East-West issues. The issues of electricity grids and marine renewables have already been the subject of work by BIC subgroups over recent months.
The BIC Electricity Grid Sub-Group has been taking forward a work programme focusing on: interconnection and market integration; planning and consents; Smart Grids, National Renewable Energy Action Plans, the North Sea Countries Offshore Grid Initiative and the ISLES Offshore Grid Feasibility Study. The Electricity Grid group has also prepared a discussion paper on a proposed "All Islands Approach" covering the areas of energy trading, interconnection and market coupling policy areas. The Energy Marine Renewables Sub-Group continues to share best practice around research and development, policy support and marine environment activities. The BIC Marine Energy Group is working collaboratively with the EU Ocean Energy Association and Marine Energy Interest Group to achieve shared goals of increasing the profile of marine renewables with the European Commission and adoption within the Strategic Energy Technology Plan.
It would appear that the relevant UK authorities have realised the potential of Ireland's wind resource, and in the face of looming climate change and renewable energy targets, see Irish wind as a key part of their future renewable energy strategy. The UK electricity market dwarf's Ireland in scale, with a demand almost 15 times the size of Ireland's. While Irish wind may not be the answer to all the UK's energy demands, it could form an important part of their future energy mix. Such an opportunity would be of considerable value to the Irish economy and balance of payments.
The most important requirements to see the plans and proposals become a reality include increased interconnection, market integration with the UK and a series of subsidies for Irish wind farms generating electricity for export.
Some interesting questions that arise from the recent announcement include:
- Will Irish wind farms be able to take advantage of the ROC's subsidies normally available to projects in the UK?
- Will the integration result in a new "Gate" of grid connection offers?
- Will the initiative provide the necessary incentives to kick-start the Irish offshore wind energy industry?
- How will Germany's recent decision to abandon plans for new nuclear plants impact on the UK's plans for new nuclear, and will this create further opportunities for Ireland?
Interesting questions, that answers to which will no doubt emerge in the months and years ahead.