Wind Energy in Ireland

Michael WalshIrish Wind Energy Association

Overview

• Ireland’s Resource

• Ireland’s Energy System

• Achieving High Renewable Penetration

• Observations for the Future

Resources & Capabilities

Wind Generation Costs

Ardnacrusha 1927

Thermal Unit

Wind Unit

Household electricity prices, 2007

Source: Eurostat

Irish Power System

• Transmission Stations 113

• 110kV Feeders 3848 km*

• 220kV Feeders 1729 km*

• 400kV Feeders 439 km*

• 3 Interconnections to NIE

ROI Targets• 16% of energy to come from renewables by 2020

• 40% of electricity to come from renewables by 2020

Wind Energy in Ireland Today and IWEA projections for 2020

2009 2020

Installed capacity

1200 MW 8,250 MW *

Number of turbines

900 ~4500

Electricity generation

2663 GWh 16425 GWh ROI 5256 GWh UK

Share in net electricity consumption

8 % 40% ROI1.4% UK

*2,000 MW for export to UK

System Demand from Wind

00:0001:00

02:0003:00

04:0005:00

06:0007:00

08:0009:00

10:0011:00

12:0013:00

14:0015:00

16:0017:00

18:0019:00

20:0021:00

22:0023:00

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00% 40.38%

7th May8th May9th May10th May

Hour

Win

d Po

wer

Pen

etra

tion

(%)

Achieving 40% Wind

• Finance

• Grid

• Planning

• System Integration

• Community

Achieving 40% Wind

• Finance

• Grid

• Planning

• System Integration

• Community

Finance

• Support Systems are driving development in Ireland and most of the EU– Feed in Tariff in Ireland provides a floor of €75/MWhr– ROC System in UK provides top up revenue of £50/MWhr

• Market Integration is a policy priority• Market Structures under pressure with new power

systems– More capital intensive cost base– Low marginal generation costs

• More risk sensitive finance providers

Trend in Average Daily SMP

Stabilise Policy

• Difficult credit environment

• Clarity is essential

• Regulatory systems and market design should

promote market certainty

• Scope to improve BES scheme

Achieving 40% Wind

• Finance

• Grid

• Planning

• System Integration

• Community

Areas Outside

Standards in 2010

2013 to 2016

Developing the Grid - Grid252,200 km Upgrades

1,150 km New Build

€4 billion

€4 bn

*Reinforcement Corridors

EirGrid Off-Shore Grid

Study

Achieving 40% Wind

• Finance

• Grid

• Planning

• System Integration

• Community

Planning

• Expiring permissions

• European Directives

Expiring Permissions

• Long lead time for Grid Connections

• Planning Consents typically expire after 5 years

• NI system requires Grid applicants to have a planning permission

Overview

• Ireland and New Zealand

• International Factors

• Ireland’s Energy System

• Achieving High Renewable Penetration

• Observations for the Future

Observations

1. A long term energy strategy is a necessary first step2. Markets need to value the full energy product

– Energy– Secure supply– Price stability– Strategic Energy Security– Carbon Costs and Benefits

3. System Operation with large wind is achievable

Observations

4. Consistent application of a strategy between agencies is a make or break factor

5. Other industries are impacted web farms, supply chain etc.

6. Copenhagen is not the end of the process on international agreement

7. Community and society involvement essential

www.iwea.com