21. What about the visual impact of these developments? Will I be able to see them?

Yes. Offshore wind developments currently proposed in Ireland consist on average of around 50 turbines per development. With turbines of approximately 300 meters tall, located 10-15 km from shore these proposed developments would dominate the coastal landscape/seascape. International research suggests that, before they become visually insignificant, wind turbines of this magnitude would need to be located approximately 45 km from shore. In Ireland it is currently being proposed that such enormous turbines could be sited 5-6 km from shore. The Irish coastline, which is so much part of our collective heritage and identity, remains relatively unspoilt and is of enormous value to the Irish people and visitors to the island. Ireland has an opportunity to adopt a measured, sustainable, innovative and environmentally sensitive approach to offshore renewable energy development, learning from those countries which have already adopted a variety of approaches, policies and technologies. We must argue robustly to protect Ireland’s marine environment, magnificent coastal landscapes and those whose welfare and economic prosperity depends on preserving the ecological and visual integrity and unique quality of this environment.

22. What’s the problem with the projects that were successful in the government's recent auction?

The Irish government continues to support a developer-led business model for offshore wind. This has allowed developers to identify and lay claim to any site they choose and apply for rights on that site. Currently, four projects have received a route to market (meaning that these projects have been accepted for the government Offshore Renewable Energy Support Scheme (ORESS); North Irish Sea Array (Skerries), Dublin Array (Kish & Bray Banks, South Dublin/Wicklow), Codling Wind Park (Bray/Greystones/Wicklow) and Sceirde Rocks (Connemara). These sites were targeted by speculative interests more than 20 years ago without any environmental assessment as to their suitability for development. Careful site selection is the most important step in avoiding damaging environmental impacts of wind and solar developments. These historic sites have not been the subject of any Strategic Environment Assessment (SEA), nor are they required to align with a marine spatial plan. The only environment assessments undertaken have been commissioned and paid for by the developers and environmental consultants employed by, or associated with, developers. This is, surprisingly, not illegal, but it underlines the importance of having a robust system to scrutinise submissions made in support of the developers’ proposals. In Ireland no such reliable system of scrutiny exists.

23. What is Strategic Environmental Assessment?

Strategic Environmental Assessment (SEA) is a process for the formal, systematic evaluation of the likely significant environmental effects of implementing a plan or programme, before a decision is made to adopt the plan or programme. The SEA Directive requires that all plans and programmes that have the potential to have impacts on the environment are subject to SEA. However, in Ireland, certain plans and programmes have either not been subjected to SEA (Harnessing our Ocean Wealth - An Integrated Marine Plan for Ireland, 2012) or the Directive has been incompletely applied (Offshore Renewable Energy Development Plan, 2014).

24. Is electricity generated from renewable energy sources cheap for consumers?

The quick answer is no. The illusion that electricity produced from renewable energy sources is cheap has yet to be proven. Two of the early adopters of renewable energy, Denmark and the UK, both have some of the highest consumer electricity prices in Europe at €0.60 kW/h compared to Ireland which currently averages at about €0.42 kW/h and way above the EU average of €0.28 kW/h. Considering that Denmark generates over 70% and the UK 41% of their electricity from renewable sources (mostly wind) it appears that renewable energy will not deliver the lower prices we had hoped for. On the other hand, electricity should not necessarily be cheap and, though there are social issues to overcome, increasing consumer (and commercial) electricity prices is one of the most effective ways of reducing electricity consumption and as a result, climate impacts. To cover the initially higher costs involved in generating from renewable sources in Ireland, projects are subsidised. Developers partake in a government Offshore Renewable Energy Support Scheme (ORESS), which guarantees them a fixed price for electricity for the duration of the project. Developers must place bids regarding their supply prices and generation capacity in an auction (ORESS 1) and, in theory at least, the cheapest bids are accepted. A strike (guaranteed) price is determined by Eirgrid and successful developers are then assured of a route to market and a guaranteed price for the electricity their development generates. The auction price is based on contracts for difference, which means if the wholesale (spot) price drops below the strike price, the government will top up the developers to the predetermined strike price. If the wholesale price goes above the strike price, the developers pay back the balance. This gives developers and investors a safety net, ensuring there is no way projects will fail in terms of financial viability. Ireland’s first two onshore wind energy auctions struck a price of €75/MWh and €97/MWh respectively; more recently the price was €100/MWh, higher than the previous auction but not surprising due to supply chain costs and inflationary pressures. Our first offshore auction reached a strike price of €86/MWh. This is quite expensive compared to current wholesale gas prices which are currently €50/MWh. This means that Ireland’s offshore renewable energy prices are almost twice times the price of gas (October 2023) and the cost to the Irish taxpayer will be enormous. While the price of gas can be volatile due to market speculation and reaction to global events, the war in Ukraine and Germany’s long-term dependence on Russian gas and oil drove gas prices to €340/MWh in August 2022. Gas prices have now recovered due to abundant LNG supplies and reduced consumption.

25. How will electricity generated from offshore wind be used?

This is a complex question for which there is no clear answer. What is known is that the increase in demand for energy from Data Centres puts a disproportionate and increasing burden on Ireland’s energy supply. While it is likely that some energy generated from offshore wind would be fed into the grid, current government policy includes plans to further increase the number of data centres the country will host, leading to a concomitant increase in energy demand. Data centres are a high energy demanding industry, providing relatively little employment. A recent webinar hosted by Friends of the Earth , Ireland, provides very useful insight into the inadvisability of Ireland’s current Data Centre policy, and appeals for a re-think. A case in point is the current situation in Arklow. The current promoters of the proposed Arklow Bank development, SSE, are aiming to construct 197m high turbines about 6 km from Brittas Bay and the Wicklow coast, in close proximity to Wicklow reef, (the first example of a subtidal sabellaria alveolata reef in Britain and Ireland), Wicklow Head SPA (a protected area for IUCN red listed Kittiwakes) and adjacent to the Buckroney-Brittas Dunes and Fen SAC, which hosts unique priority habitats, protected under the Habitats Directive. Although this proposed project is very much in the early stages of planning, SSE appear to have already entered into an agreement to supply the energy generated to an Echelon Data Centre, and apparently further such agreements are envisaged. That this agreement has been reached in advance of the Arklow proposal even making an application for planning permission, raises serious questions about the planned use of Ireland’s offshore renewable energy. In addition, and perhaps of even greater concern, is that it creates serious doubt about the objectivity and impartiality of the planning and environmental assessment processes being put in place to manage wind farm applications. Though we recognise the urgent need for renewable energy, this should not be achieved at the expense of our marine environment in order to provide energy for data centres.

26. What determines the wholesale price of electricity?

Because electricity is a commodity that cannot be stored efficiently, supply and demand must be matched at all times. Electricity generated from renewable sources such as wind and solar must be consumed immediately so it is fossil fuels such as coal, oil and gas which are brought online to balance demand. As wind and solar do not consume any materials in the production of energy, they are the first sources used to supply the grid. As demand increases, fossil fuels are added according to how expensive it is to obtain electricity from that source. This hierarchy, where the addition of progressively more expensive fossil fuel powered generators are added to supply the demand, is known as the merit order. Wholesale electricity prices are calculated on a half hourly basis and are dependent on demand; this is referred to as the spot market price. The spot price is determined by the last source of electricity to enter the grid (or to ‘come online’) which is normally a fossil fuel such as oil or gas. Therefore, no matter how much renewable electricity is generated, the wholesale market price is determined by the price of the last generator to come online. The initial spike in gas prices in August 2022 resulted in significant price increases, which are beginning to recover. Energy company hedging strategies kept prices artificially inflated in Ireland for almost 14 months after the spike. Given current market prices for natural gas, currently €50/MWh (October 2023) renewable energy is one of the most expensive generation sources to supply electricity in Ireland.

27. How do Irish offshore electricity prices compare with those in the UK?

Badly. The last offshore wind auction (Round 4) in the UK resulted in a strike price of around €40/MWh, which is less than half of what Ireland recently achieved. The locations selected by the UK government for offshore wind were in areas approximately 45 km from shore and, in some cases, up to 135 km from shore. These projects would have incurred higher capital expenditure costs due to the distance from shore so the lower strike price achieved by the UK government is even more impressive. It is important to remember that the UK mainland is less than 100 km from Ireland and the same energy companies are involved. So why is Ireland's offshore renewable energy so expensive? The four Irish projects awarded contracts from Eirgrid are located approximately 10 km from shore, on shallow Annex 1 sandbanks and inshore fishing grounds. These locations should represent the cheapest option for developers, begging the question as to why the Irish offshore electricity strike price from ORESS1 is so expensive, at €86/MWh.

28. How are offshore renewable energy (ORE) sites selected in Ireland and the UK?

In the UK, the Crown Estate is responsible for the management of the seabed and facilitates competing demands for space by different sectors such as offshore wind, cables, pipelines. As managers of the seabed, the Crown Estate is the competent authority charged with ensuring that, in selecting sites for offshore wind development, legislation such as the Habitats and Birds Directives are adhered to so that high biodiversity value (e.g Natura 2000) sites are protected from impacts of the various activities undertaken at sea. How well this works in practice is unclear, but the system is designed to ensure that, in the face of the unprecedented expansion of offshore renewable energy infrastructure, sites are selected to minimise the associated increased risk to biodiversity. The Crown Estate assesses areas for suitability and determines whether the Directives are satisfied before any seabed rights are awarded. The Habitats Regulation Assessment (HRA) must be conducted before any seabed rights can be awarded to developers. The support of relevant planning authorities and nature conservation bodies may contribute to the final decision. In Ireland, the first offshore Maritime Area Consents (MACs) were awarded to seven proposed offshore renewable energy projects in December 2022 by the Minister for the Environment. The 45-year seabed consents were granted to ‘legacy’ projects located on sites self-selected by developers more than 20 years ago. These sites were never subject to Strategic Environmental Assessment (EU Directive) and are located on sensitive near-shore sites, close to fish spawning grounds and in high biodiversity value locations, and important bird areas previously proposed for designation as Special Areas of Conservation (SAC) under the EU Habitats Directive. The Maritime Area Regulatory Authority was established in July 2023 and will be the new authority for the awarding of consents, licencing, and regulation of Ireland’s inshore and Exclusive Economic Zone (EEZ).

29. Why are Ireland’s proposed wind developments located so close to shore?

Current Irish offshore wind developments are proposed close to shore because they are located on sites that were selected by developers many years ago. From a cost perspective, turbines which are located in shallow water are less expensive to install and run. While this may be advantageous to the developers, such near-shore, poorly sited wind developments are likely to have devastating consequences for marine biodiversity, coastal processes and inshore fishers and will result in the industrialisation of coastlines and seascapes. Although several early wind parks in the UK and Europe, including the current Arklow Bank turbines, were situated relatively close to shore due to technological constraints, most current offshore wind developments are sited more than 25 km from the shore, with some developments located as far offshore as 135 km. Because of a lack of proper ecosystem-based Marine Spatial Planning and Strategic Environmental Assessment, Ireland is the only country in the EU aiming to facilitate the siting of such large turbines so close to shore. Table 1. Summary of distances at which low and medium magnitude of effect occur. <a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwi10bLh9b6AAxUyRkEAHVC6AZoQFnoECA0QAQ&url=https%3A%2F%2Fcdn.cyfoethnaturiol.cymru%2Fmedia%2F689508%2Feng-evidence-report-331-seascape-and-visual-sensitivity-to-offshore-wind-farms-in-wales.pdf&usg=AOvVaw0F7rXCUK07kOWv3kXNcyNs&opi=89978449" target="_blank" rel="noopener">National Resources Wales , 2019

30. How many offshore wind developments are being proposed in Irish waters?

Up to March 2023 the Irish Government encouraged a developer-led approach for offshore renewable energy projects, meaning that developers could pick and choose potential windfarm sites. However, a policy shift announced in March determined that windfarm projects would be developed via a new planning process. This new process involves windfarm developers competing for permission to build windfarms on sites preselected by the Government. The selection of DMAP sites, within which developers then compete for permission to construct, should be determined by an ecosystem-based process. Unfortunately, in Ireland ecosystem considerations do not appear to have influenced the DMAP site selection process. Instead, high biodiversity value areas have been selected that encompass sites already targeted by developers, making a nonsense of the idea that Ireland is espousing a plan-led approach. Nonetheless, the decision to create DMAPs is Ireland's first attempt at maritime spatial planning with regard to offshore wind energy development and, undoubtedly, is a welcome step because, in theory at least, it means that there is a commitment to a State-led planning approach to identify specific sites suitable for offshore renewable energy production. Developed by the newly established Marine Area Regulatory Authority (MARA), Ireland’s first DMAP includes areas off Waterford, Wexford and Cork. Further DMAPs are planned for designation along our east coast, again an area where developers have already targeted vast areas of the coastal zone for development.

FAQs Archive - Page 3 of 4

Published: June 5, 2021

21. What about the visual impact of these developments? Will I be able to see them?
Learn More
Published: May 5, 2021

22. What’s the problem with the projects that were successful in the government’s recent auction?
Learn More
Published: May 1, 2021

23. What is Strategic Environmental Assessment?
Learn More
Published: April 5, 2021

24. Is electricity generated from renewable energy sources cheap for consumers?
Learn More
Published: March 5, 2021

25. How will electricity generated from offshore wind be used?
Learn More
Published: February 5, 2021

26. What determines the wholesale price of electricity?
Learn More
Published: January 5, 2021

27. How do Irish offshore electricity prices compare with those in the UK?
Learn More
Published: December 5, 2020

28. How are offshore renewable energy (ORE) sites selected in Ireland and the UK?
Learn More
Published: November 5, 2020

29. Why are Ireland’s proposed wind developments located so close to shore?
Learn More
Published: October 5, 2020

30. How many offshore wind developments are being proposed in Irish waters?
Learn More