ReNews Special Feature on Ireland -June 2015

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INTERNATIONAL EXPERTISE
18 JUNE 2015 • WWW.RENEWS.BIZ
IRELAND SPECIAL REPORT 2015
Planning
Environment
Engineering
Project Management
Project
Communications
Due Diligence
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Ireland
in full
bloom

CONTENTS
18 June 2015
IRELAND 02
ONSHORE CHALLENGES
04-07
Champagne years
Turbine setback alarm bells ringing
Supply chain running hot
for the Republic
POLITICS
07-09
Rocketing rates threaten to ruin
investment mood music
Reading the runes for Dublin’s
post-Refit world
Pitfalls and upsides in new-look single
market
DEVELOPERS
Size matters for yield-hungry operators
Fertile soil for Bord na Mona
FINANCE/SECTORS
10-12
13-17
Refit pours oil on asset-buying fires
Banks pile aboard the Refit train
UK demand key to offshore ambitions
Dawn breaks for solar sector
Rush for the
Refit 2 wire puts
construction plans
into overdrive but
supply chain and
policy uncertainty
could spoil party, writes
Stephen Dunne
renews.biz
The wind industry in the Republic
of Ireland is ramping up to
smash construction records as
developers race to beat the Refit 2
support regime deadline of end-2017.
Some 788MW of onshore projects
are set to be built next year, more
than double the previous 12-month
best of 350MW, according to figures
compiled exclusively by renews with
developer, planning and grid-provider
input
A relatively modest tally of 283MW
is expected this year while 550MW is
slated to come online in 2017 itself,
although the latter figure could rise
significantly with a further 609MW
already consented.
In total, the two-year stretch from
the start of 2016 could see 1900MW
of capacity added to the grid, putting
Ireland on target to exceed its target
of generating 40% of electricity from
renewables by 2020, equivalent to
3.8GW. If planners take a favourable
view on the 1300MW in the planning
queue the industry is likely to pass the
4GW mark well before the end of the
decade.
The anticipated construction spike
raises questions, however, about the
supply chain’s ability and willingness
to get the job done. Construction and
electrical engineering prices are said
to be unsustainably low with many
contractors reluctant to over-extend
themselves for the meek returns on
offer.
“Across the board you are going to
see problems with the supply chain,”
“...Wind has moved beyond
just being an energy
resource; it is now also an
enabler for foreign direct
investment in Ireland...”
said Natural Power project manager
Marc Lamphiere. “The market
really needs certainty to support
the construction contractors to go
out and get the people they need.”
Turbine transporters,
cranes and even ESBcertified
poles could
03
NORTHERN IRELAND
18-20
North on verge of quantum leap
Wind farm project countdown
SeaGen keeps seat at Fair Head tidal
project
Gaelectric in vanguard of energy
storage revolution
BIOMASS
21
Industry hopes for break-out moment
FRONT PIC: the38MW Sorne Hill wind
farm in Donegal
Photo: Brookfield
BUILDING BOOM: wind farm
construction stretches into
the twilight hours Photo: Moriartys

18 June 2015
REPUBLIC’S WORK ROSTER
Due in 2015
Name County Developer MW
Acres Donegal GE/Element 17.5
Barranafaddock Waterford GE/Element 34.2
Carrowleagh 2 Mayo Independent 2.65
Carrownaweelaun Clare Windsource 4.6
Clahane 2 (Pallas 2) Kerry Clahane (2) Energy Limited 13.8
Cloghboola Kerry Gaelectric 46
Cloonlusk Galway Connaught Power 4.6
Collon Meath Collon Wind Power 3
Cooly Cork Independent 4
Glanta Common Cork Ballybane 13.8
Glentane 2 Cork Brookfield 12.5
Kilbranish Wexford Greenogue Wind Farm Ltd. 2.5
Killin Hill Donegal Enercon 6.9
Kilmeedy Limerick Unknown 4.9
Knockduff Cork Invis Energy 65
Leabeg Offaly Gaelectric 4.6
Roosky Roscommon Gaelectric 4.6
Three Trees Donegal Three Trees Wind Project 4.6
Tullynamoyle 2 Leitrim Tullynamoyle Wind Farm 2 13.8
Woodhouse Waterford ESB 20
TOTAL
283.55MW
In the pipeline for 2016
An Cnoc Tipperary Cnoc/Gaelectric 11.5
Ballagh Limerick Gaelectric 4.6
Ballybay Kilkenny Gaelectric 13.8
Ballycumber Wicklow KBM 18
Buttevant Cork DP Energy 18
Carrickallen Cavan Galetech 23
Cloghaneleskirt Kerry Cloghaneleskirt Wind Farm 11.5
Coolegrean Kerry SSE 18.5
Derrynadivva Mayo Ecopower 6.8
Derrysallagh Sligo Kilronan Wind Farm Ltd. 34
Foyle Kilkenny ART Generation 9.6
Galway Wind Park Galway SSE/Coillte 169
Glencarbery 2 Tipperary Ecopower 33
Kilberehert Cork Independent 4.5
Killala Mayo Killala Community Wind Farm 14
Kilmaley Clare Seahound Wind Development 13.4
Knockawarriga 2 Limerick Brookfield 7.5
Lettergull Donegal Impax 18.4
Lisdowney Kilkenny Lisdowney Wind Farm Ltd 9.2
Meenadreen Donegal Energia 95
Mountain Waters Monaghan Galetech 11.2
Oldmill Monaghan Galetech 16
Rahenleagh Wicklow ESB/Coillte 36
Sliabh Bawn Roscommon Coillte 58
Slievecallan Clare West Clare Renewable Energy 87
Taghart Cavan Galetech 20.7
Tullabrack Clare Windsource 13.8
Tullaroan Kilkenny ART Generation 12
TOTAL
788.0MW
Scheduled for 2017
Boolynagleragh Clare ESB 20.7
Cappawhite Tipperary ESB 54
Castlepook Cork ESB/Coillte 33.1
Coolberrin Monaghan ESB 15
Coolegrean Kerry Harry Harbison/SSE 18.5
Corkermore 2 Donegal Energia 10
Cullenagh Laois Coillte 45
Grousemount Kerry ESB 104
Leanamore Kerry SSE 18
Lisheen 3 Tipperary Brookfield 24
Moneypoint Clare ESB 15
Scartaglen Kerry Harry Harbison 39
Seven Hills Roscommon Galetech 87.5
Upperchurch Tipperary Ecopower 66
TOTAL
549.8MW
02
also be pinch-points.
Beauchamps Solicitors
head of renewable
energy Ainsley Heffernan said he
believes the private sector will rise
to the challenge but is concerned
about the public sector. “Eirgrid, ESB
Networks and the CER all have to step
up to the plate. Are they going to be
adequately resourced to hire the staff
they need?” he asked.
Other issues could slow progress. A
potential trebling of business rates,
complex new market rules due in 2017,
uncertainty about a successor support
mechanism to Refit 2, new planning
guidelines and an increasingly
emboldened anti-wind movement are
all making developers sweat.
Bord na Mona head of PowerGen
John Reilly said serious doubts are
emerging about whether the wind
sector can fulfil its potential and help
Ireland meet renewable targets.
“There is no doubt these things
in combination are likely to see a
significant slowdown in the rate of
development. Ultimately if we don’t hit
the targets the taxpayer will have to
pick up the bill unnecessarily,” he said.
Irish Wind Energy Association chief
Kenneth Matthews said even if the
renewables target is hit three years
early there needs to be a continuing
regime beyond 2017. The wind sector
is anticipating a 900MW increase
MEASUREMENT
SERVICES
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Mast installation
and management
Remote sensing
Acoustic monitoring
Data management
It’s all about
the data”
IRELAND 03
in national electricity demand as a
result of a data centre boom led by
technology giant Apple.
“They are coming to Ireland because
of its stable policy environment and
phenomenal wind resource,” said
Matthews. “Wind has moved beyond
just being an energy resource; it is
now also an enabler for foreign direct
investment in Ireland.”
The semi-state development stable
remains in rude health. ESB leads
the pack with a 300MW installed
wind target. Coillte is chasing
similar numbers with tie-ups at ESB
and SSE underway, including the
169MW Galway Wind Park due to be
commissioned in 2016.
Bord na Mona is pinning its hopes
on the 370MW Oweninny megafarm,
an ESB partnership due to be
decided by state planners later this
year. Gaelectric, Galetech, Ecopower,
Energia and Craydel are continuing
their recent growth with serious multimegawatt
project targets.
Despite the emerging risks,
developers with consent and grid
connections in place are being offered
increasingly attractive terms by debt
providers scrambling for business.
Domestic and international banks
are all offering keenly-priced finance
deals while equity investors eager
to get in on the ground floor are
throwing cash at attractive assets. •
www.res-group.com/measurement | +44(0) 141 404 5689

18 June 2015
WIND FARMS ON IRISH HORIZON
Consented, no build date
Name County Developer MW
Aught Donegal Aught Wind Farm Ltd. 23
Barna Cork Craydel 28
Beam Donegal Beam Wind Ltd. 9
Bonniconlan Mayo Independent 28
Bunkimalta Tipperary ESB/Coillte 48
Butter Mountain Wicklow Galetech 27
Carrowleagh Kilbride Mayo Independent 48.3
Castlepook Cork ESB/Coillte 42
Cleanrath Cork Craydel 21
Coomatallin 2 Cork SSE 3
Cordal Kerry Saorgus 84
Derryvacorneen Cork Craydel 17
Dromadda Beg Kerry Dromadda Beg Wind Farm 3
Dromadda More Kerry Impax 32
Esk Cork Craydel 24
Kilcarrig Carlow Kilcarrig RE 15
Loughderryduff Donegal North West Wind 9.35
Milestone Tipperary ABO Wind 15
Tooberatoreen Limerick SSE 11
Treannagleragh Mayo Monterrosso 9.2
Tullynageer Monaghan Galetech 11.5
Upper Lillies Donegal Fahan Wind 5
Yellow River Offaly Greenwind 96
TOTAL
609.35MW
IRELAND 04
Major projects in planning
Altnagapple Donegal Altnagapple Wind 26
Ardderroo Galway Invis 87
Ballyhorgan Kerry Craydel 30
Boolynagleragh 2 Clare ESB 16.1
Carrickaduff Donegal Invis 126
Cloghan Offaly Galetech 28.8
Clogheravaddy Donegal ABO Wind 19.95
Cregg Meath Cregg Wind Farm 18
Dalton Mayo Invis 40.8
Derragh Cork Framore 13.8
Derrykillew Donegal Derrykillew Community Wind Farm 12.5
Emlagh Meath Element Power 160
Esk 2 Cork Craydel 18
Garvegort Donegal Bonnar Engineering 3.6
Glenahiry Waterford Ecopower 25
Knockalough Galway Invis 27.5
Knocknamona Waterford Ecopower 27
Maighne Kildare Element Power 141
Meenwaun Offaly Element Power 15
Oweninny Mayo Bord na Mona/ESB 370
Pine Woods Laois Galetech 48
Shehy More Cork Craydel 36
Shragh Clare Clare Coastal Power 27
Tawnanasool Mayo Ecopower 16.8
TOTAL
1333.85MW
Industry at battle
stations over feared
measure in coming
planning update
renews.biz
Turbine setback
alarm bells ringing
Any move by Dublin to enforce
a 700-metre turbine setback
distance could seriously imperil
the nation’s renewables targets, the
wind industry has warned.
Discussions with officials on a new
set of wind farm planning guidelines
are coming to a conclusion with
Environment Minister Alan Kelly
understood to be supporting a plan to
deal with noise and shadow flicker via
a minimum setback, potentially linked
to turbine height. However, industry is
unhappy with the proposals, arguing
they will add more uncertainty to the
post-2017 scenario.
Irish Wind Energy Association
chief Kenneth Matthews said he is
surprised setback has moved centre
stage as the department’s original
thinking was focused on issuing new
benchmarks on shadow flicker and
noise.
“It would seem odd that the
Environment Department would
impose conditions that would make it
harder to meet (renewables) targets,”
Matthews said.
While the guidelines will not have
any bearing on projects with consent
and in the pipeline over the next two
and a half years, what may happen
in 2018 and beyond is another
matter. Beauchamps
Solicitors head of
05
renewable energy
ENVIRONMENTAL SUPPORT FOR
RENEWABLES PROJECTS
(LEADING EDGE SERVICES
TAILORED TO CLIENT NEEDS)
www.ramboll-environ.com Nathan Swankie nswankie@environcorp.com

04
18 June 2015
Ainsley Heffernan
said investors are
already picking up on
future planning risks from a setback
distance.
“The risk is you have large tranches
of the country sterilised,” he said. With
an election looming within 12 months
and the junior coalition partner
Labour under serious pressure, many
fear a change in planning parameters
may be used as a sop to secure rural
support. Kelly is a Labour TD for
Tipperary North.
“If you look at who has backed
Alan Kelly there would be more of
an anti-wind hue,” said a political
source. “Pylons and wind farms may
well become an issue and all TDs and
ministers are going to be thinking
where there is less damage for losing
votes.”
Not everyone is so downbeat.
Galetech director Darren Sherry said
developers just want certainty.
“We are getting a lot of strange
decisions at the local authority level
so planning guidelines this year
no decision be made this year but
not everyone is so lucky. “There is no
doubt that with these sort of delays
projects may fall away,” he said.
Ireland’s 2020 target of meeting
40% of electricity demand with
renewable energy is at risk, Reilly
added.
“It was assumed that we would
hit that target but I think there is a
question mark over that now.”
Adding to the mix is last year’s
project-splitting ruling in Dublin’s High
Court, which planning sources said
is causing delays with case officers
seeking more information on grid
routes before issuing decisions
Brian Keville, a director of planning
consultancy McCarthy, Keville and
O’Sullivan, said the judgment has led
to a “new reality” where developers
need to carry out impact assessments
of grid connections when submitting
initial planning paperwork. •
IRELAND 05
LOVE THY NEIGHBOUR:
Energia’s 9MW Hollyford wind
farm nestles into the Tipperary
countryside
Photo: Sean Abeyta
“...There is a very serious risk
that if you get the planning
guidelines wrong there may
be irreparable damage done
to the Irish wind industry...”
would be helpful,” he said. “Once they
established a form of best practice
they would be welcomed by industry.”
Appeals body An Bord Pleanala
is struggling to deal with around
1500MW of wind projects at various
stages in the Irish planning system. In
May it shot down Coillte’s 48-turbine,
150MW Cluddaun application in
County Mayo.
Coillte director Mark Foley said
the decision was “harsh”, adding he
believes there is too much at stake for
energy policy to be politicised.
“There is a very serious risk that if
you get the planning guidelines wrong
there may be irreparable damage
done to the Irish wind industry,” he
said.
Projects require planning consent
before the end of this year to
qualify for Refit payments and other
developers with applications before
ABP are getting nervous.
Partners ESB and Bord na Mona’s
370MW Oweninny wind farm has
been lodged for almost two years.
BnM’s John Reilly said he is
confident of building the wind farm
outside of the Refit process should

18 June 2015
IRELAND 06
Supply chain running hot
Race to the
bottom on prices
‘threatens to drive
out experienced
contractors’
renews.biz
Developers have the upper hand
in tender negotiations with
contractors as the Irish wind
industry prepares for its busiest ever
period.
Supply chain players are being
forced into cut-throat pricing
competition in the hectic project
construction market with developers
also keen to ensure costs are kept to
a minimum. If the trend persists big
contractors could withdraw, leaving
an already limited pool of experienced
companies in Ireland further
diminished.
Powerteam director Alastair
Dawson said the electricals outfit is
becoming increasingly selective about
tendering. “We see some very silly
prices in the Republic. People are
going in with ridiculously low rates.
That’s probably a function of the
recession and what happened to the
construction industry.”
Developers should not get too
comfortable, however. “There’s a fairly
buoyant market not so far away in
Scotland,” Dawson warned. “If prices
for electrical work remain on the floor
it could be difficult to get contractors
to take on the work (in Ireland).”
Civil contractors tell a similar story.
Many could potentially expand their
operations but are reluctant to do so
due to tight margins and uncertainty
post-2017. One senior source at a
“...Start dates and financial
close timelines are slipping
on virtually every project and
there’s a bit of a panic with
tenders coming out from all
angles...”
leading wind farm constructor said
developers are starting to realise their
projects may fall through if they fail to
sign on experienced companies.
“Start dates and financial close
timelines are slipping on virtually
every project and there’s a bit of a
panic with tenders coming out from
all angles,” said the source. “On our
part there is still a certain degree of
selection of clients with prices still so
low.”
Developers are refusing to yield to
demands for better pricing, he added.
“We tried to increase our price on a
couple of small jobs recently and we
didn’t get anywhere near the final
shake-up.
“Market prices are totally unrealistic
at the moment. People are still trying
to do work at very small margins and
the reward really doesn’t justify the
risk.”
Opinion is mixed on whether the
supply chain can cope with demand
given there is at least 1800MW in the
Republic’s construction pipeline for
the next two and a half years.
Marc Lamphiere of Natural Power
said as well as getting face time with
a limited number of finance decisionmakers,
turbine manufacturing
schedules are looking dicey.
“We are typically seeing a ninemonth
wait for turbines and if
everyone is working
within that window
07
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06
18 June 2015
lose out. It will end up
as a race.”
Lamphiere added
that relatively straightforward issues
such as the availability of cranes,
ESB-approved wire poles and
electrical commissioners are also set
for a scramble.
Wind Prospect Ireland director Ken
Boyne is more upbeat. “The supply
chain will certainly be stretched by
the projected volume of work but
already we are seeing a welcome
spreading of that workload due to
the normal mix of project delays and
inertia,” he said. •
IRELAND 07
KNIFE-EDGE MARGINS: turbine blades navigate a tricky corner en route to the site of Element Power’s
Barranafaddock wind farm
Photo: Element Power
Rocketing rates threaten to
ruin investment mood music
Tax shock in Limerick
tears up wind farm
revenue expectations
renews.biz
A
trebling of business rates could
push struggling operational
wind farms into default with
lenders and prompt a rethink for big
investors with skin in the Irish game.
In recent months the Valuation
Office has boosted the levy on wind
farms in Limerick from €6000 to
more than €20,000 per megawatt per
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annum as part of a plan to review the
business tax across the Republic.
Appeals in Limerick have been
launched by operators but Dublin
has pressed ahead with a roll-out of
legislation that will see nationwide
revisions, sparking widespread anger
in the wind industry.
If the Limerick appeals fail wind
farms could be on the hook for
damaging, possibly fatal, opex
increases as rates bills represent one
of the largest annual outgoings.
Energia Renewables director Peter
Baillie said he believes the industry
has been unfairly targeted and argued
“... It is in the investment
community where the risks
are being most keenly felt...”
price supports are insufficient to
give developers cover to deal with
revisions.
“A rates increase is fair enough but
a trebling of (bills) has the potential to
be a show-stopper,” he said.
With inflation flat-lining, any opex
hike will make it even harder to
manage debt. “Some projects from
the last five years are struggling
because they have factored in
inflation,” said HgCapital director
Emma Tinker. “With the rates issue on
top, it may push them into default.”
Banks are watching the process
closely but are confident debt
repayments can take the increase
at existing projects and will remodel
lending terms to cover potential
exposure. It is in the investment
community, however, where the risks
are being most keenly felt.
Several recent equity deals and
major project sales have either
collapsed or been postponed until the
outcome of the Limerick appeals are
known, renews understands.
Sellers are being shouldered with
risk by buyers keen to bring prices
down in a bid to salvage some longterm
profitability on projects.
Gaelectric chief financial officer
Barry Gavin said any large rate increase
amounts to a “retrospective tax” that
will scare off big investment funds
like BlackRock. The asset manager’s
Teresa O’Flynn told this year’s Irish
Wind Energy Association conference it
was a “retroactive change” and “not a
risk we signed up for”.
One company with hefty
investments in Ireland is Canadian
giant Brookfield Renewable Energy
Partners.
Last year it secured the former
Bord Gais portfolio for €700m and
plans to extend the operational assets
beyond 320MW to 500MW.
Finance sources said the developer,
which is thought to have been
unaware of the revisions when
carrying out its due diligence, is likely
to be deeply unhappy with potentially
swingeing cuts to long-term returns.
Intensive industry lobbying of
government is ongoing and, in a
possible sign of a softening stance
in Dublin, junior finance minister
Simon Harris recently said “another
legislative vehicle” could be used to
offer “a partial exemption”.
This has raised hopes that a
solution can be found given further
revisions in other counties are
imminent. •

18 June 2015
IRELAND 08
Reading the runes for
Dublin’s post-Refit world
Smart money on
market-based
support regime
and greater role for
communities
renews.biz
The Irish wind industry is looking
to Dublin to provide a stable
Refit 2 successor in order
to avoid a collapse in activity after
2017. Consultation on a new support
mechanism is due to get underway
soon with the government set to
detail its plans in the autumn.
Energy Minister Alex White has
repeatedly signalled in recent months
that a “market-based” regime will
replace Refit. Sources suggested
Dublin favours an auction or Contracts
for Difference-style proposal with EU
policy moving away from feed-in tariffs.
The minister has already said the
White Paper will feature stronger rules
on public consultation. Communities
must be given a “genuine stake” in
renewables and energy department
officials are examining a shared
ownership incentive to encourage
developers to offer up to 20% equity.
Electricity demand is set to increase
by at least 900MW in the coming
years as technology companies look
to set up data centres powered by
renewables, according to Irish Wind
Energy Association forecasts.
IWEA chief Kenneth Matthews said
clear policy statements are needed
“...Clear visibility of the new
mechanism needs to be seen
this year to ensure continuity
of the project development
cycle beyond 2017...”
from Dublin to avoid a “boom and
bust” cycle of wind development. “We
don’t want to see (a) massive supply
chain increase to 2017 that goes
down to 200MW per year after that.
“Demand is going to grow because
(tech) companies want access to clean
renewable energy. Unfortunately the
political support seems to be wavering
so one would wonder if politicians
are plugged into the business
environment.”
The industry consensus is that
an increasingly mature wind sector
can successfully transition to a
competitive auction-style scheme.
Whatever it looks like, developers
and investors are seeking clarity. “We
need certainty,” said Barry Gavin of
Gaelectric, “and I’d be looking for that
sooner rather than later because with
uncertainty people are going to be
slow to make real capital investment.”
The supply chain is also looking
for a firm footing as it
targets growth after a
lean recessionary
09

18 June 2015
IRELAND 09
Pitfalls and upsides in
new-look single market
MARKET SIGNALS: Energy
Minister Alex White Photo: IWEA
08
period. Several senior
electrical and civil
engineering sources
told renews they are keen to add staff
to meet short and long-term demand
once Dublin commits to a strategy
beyond 2017.
Wind Prospect Ireland director
Ken Boyne said he has no preference
for a Refit successor but wants the
direction of travel to be clear.
“Visibility... needs to be seen this
year to ensure continuity of the
project development cycle beyond
2017, especially if industry needs the
supply chain to invest in additional
capacity to deliver in the short term.”
Domestic and international
investors are keen to avoid chaos
over the next two years and are
looking for comfort from Dublin. “We
need a long-term view in the White
Paper,” said EY cleantech director
Barry O’Flynn.
“Ireland has positioned itself very
well in how the renewables sector
operates and we must examine how
we are going to leverage that.”
The business rates issue and
renewed commitments to the
emission-heavy agriculture industry
are examples of a questionable
approach to the government’s green
credentials, he added.
A “holistic” approach is required
to enable new renewables growth in
onshore and offshore wind, solar and
storage. “If policy does that in a clear
way to 2030 and beyond investors
will flood in,” O’Flynn said. •
Looming electricity market
changes look likely to make life
even harder for the smaller,
independent developer in Ireland.
A so-called integrated single
electricity market (ISEM) will replace
the existing all-Ireland single electricity
market, probably in the third quarter
of 2017, as a result of EU legislation.
Regulators north and south of
the border are working through
numerous lengthy consultations on
the new design and a better picture is
expected next year.
ISEM will expose the wind sector
to the volatility of an auction-based
market requiring a far greater level of
output forecasting. The industry is still
grappling with what energy trading will
look like post-2017.
“ISEM will require things such
as energy trading, balancing and
more forecasting,” said Beauchamps
“... Does it makes sense to
have a market design that
has balancing payments
and a capacity mechanism
targeted away from wind?...”
Solicitors head of renewable energy
Ainsley Heffernan. “If you get your
forecasting wrong you are going to
pay for it in the balancing market.”
Many believe the new market
will have a lasting impact on those
independent players without the
in-house ability to trade and forecast
EU-inspired overhaul
to bring energy
trading, balancing
and more forecasting
renews.biz
actively. “It’s a regressive step
because… a single entity doesn’t have
the ability to manage power that a
big (integrated) entity does,” said
Darren Sherry of Galetech. “It’s almost
anti-competitive. The costs should be
socialised.”
Emma Tinker of HgCapital said she
believes the current design needs
tweaking if it looks set to “penalise
wind for being wind”.
“Does it makes sense to have a
market design that has balancing
payments and a capacity mechanism
targeted away from wind?” she said.
“The regulator should stand back and
say ‘we’ve encouraged wind onto the
system, let’s not penalise them for
what they are’, because that seems
counterproductive.”
Uncertainty over the impact ISEM
will have on Refit payments is causing
anxiety among developers who
note a tightening in power purchase
agreement terms offered by electricity
supply companies reluctant to overextend
themselves. Existing deals
are also coming under threat due to
market change clauses.
“Both lenders and PPA suppliers
are pushing the risk back on the
developer,” said Gael Force Wind
Energy chief executive Michael Sheehy.
“The fact that Refit 2 has fewer
guarantees for the supplier, coupled
with the timelines for Refit 2 deadlines
and ISEM introduction, has resulted in
limited and poor PPA offers.”
Others are highlighting the
potential upsides. “Having the trading
timeframes aligned with the UK might
facilitate export of energy and reduce
curtailment,” said Irish Wind Energy
Association policy manager Mary
Doorly. “If the forecast is for high wind
people can trade accordingly and
send a signal that we have cheaper
energy in Ireland.”
Some companies are already using
the uncertainty and complexity of the
new market design to carve out niche
positions. Brookfield is understood
to be examining the supplier option
while Gaelectric has already moved
into the supplier space, offering
the carrot of better forecasting and
operational management.
“Off-takers’ terms were getting
tighter and the number of players
was getting tighter,” said Barry Gavin
of Gaelectic. “As a developer we were
taking a huge amount of risk and
giving away a lot of the upside so we
made a conscious decision to start
writing our own PPAs (ahead of ISEM).”
Concerns over serious falls in wind
farm revenues are real but unlikely
to push operational or new projects
into default territory with many banks
factoring in the changes to debt
terms.
“The way that we have structured
projects with sponsors over the last
few years has left enough headroom
in cash flows to be able to absorb
reasonable amounts of change,” said
Theodore Collins, director of German
bank Nord/LB. “ISEM on its own should
not cause a default scenario.” •

18 June 2015
IRELAND 10
Size matters for
yield-hungry
developers
STRETCH LIMO: Element Power’s
Monaincha wind farm in Tipperary
features 15 Nordex N117 turbines,
the largest erected to date in Ireland
Photo: Wind Prospect Ireland
Push on to maximise
returns with larger
wind turbines but
crumbling road
system a challenge
renews.biz
Irish developers are demanding
longer turbine blades in a bid to
increase capacity factors with a
growing portion of construction in the
coming years likely to take place at
less windy sites.
County councils have meanwhile
been inundated with a slew of turbine
modification requests as operators
battle to maximise revenue potential.
Marc Lamphiere of Natural Power
said capturing better yields via
changes to hardware specifications is
an industry-wide trend.
“Some of the projects you see
coming through now were consented
around eight or nine years ago,” he
said. “Turbine suppliers are trying to
tune their hardware as they realise
that not all projects are on top of a
mountain in west Cork.”
Lamphiere cites Senvion’s MM82
and MM92 models, which have
enjoyed great success at medium
and low profile sites in the UK, as an
example of a manufacturer rising to
developer needs.
The supplier has yet to make
inroads in the Irish market but other
turbine makers have taken up the
mantle. On the back of some stellar
years in Ireland, Siemens recently
unveiled a SWT 3.3MW machine with
130-metre rotor diameter as well as a
2.3MW model with a larger 120-metre
rotor.
The German company said that
contract negotiations are increasingly
focused on how developers can
maximise power output at medium to
low wind sites.
Enercon has also spotted the
opportunity, introducing its E-82
class machine offering 20% more
production than its E-70 predecessor
on smaller towers.
“A lot of people were requesting
100-metre Class I machines and they
are getting it now with the E-101
3.5MW, which offers an increased rate
of power,” said Northern Europe sales
manager Robin Borgert.
Wind projects are also increasingly
being monitored for breaches of noise
planning conditions. Enercon has
introduced trailing edge serrations
on its fleet and is working on quieter
generators.
Technology demands are a sign
the Irish wind industry is maturing,
according to Wind Prospect Ireland
director Ken Boyne. “Our client base is
very much focused on maximising the
value of all developments rather than
merely rushing for megawatts,” he
said. “Alternative turbine options can
unlock greater project value, especially
for those projects that are being
competitively acquired.”
The race for better yield is likely to
hit a ceiling at some point, however,
with logistical and visual impact
concerns putting pressure on delivery
and consent decisions.
In addition, increasing blade sizes to
bump up yield is only financially viable
to a point as haul routes must be
upgraded, developers pointed out.
The decrepit state of local and
regional roads across much of Ireland
means serious cash can be sunk
into just getting the blades to site,
leaving many projects with a tight
specifications window.
Turbine modification consents from
An Bord Pleanala and county councils
are gradually increasing.
Major cases heading for
determination in the coming months
include Invis Energy’s 126MW
Carrickaduff with 156.6-metre tips and
Element Power’s 141MW Maighne at
169 metres. •
Ireland’s Leading
Civil Engineering Contractors
to the Wind Industry
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18 June 2015
IRELAND 11
Land-rich peat
specialist now picking
up head of steam
as renewables
developer
renews.biz
Fertile soil for
Bord na Mona
A
new 42MW wind farm now
towers over a Tipperary peat
bog that has provided energy
for centuries. Bruckana is semi-state
developer Bord na Mona’s third wind
project after the 6.5MW Bellacorick
in Mayo and 84MW Mount Lucas in
Offaly.
While Bruckana may be the
little brother to Mount Lucas, its
completion marks the company’s
emergence as a serious player in
the Irish wind sector. The 14-turbine
project also underlines its evolution
from peat generation to green power
with the company targeting 50%
renewables output this year.
John Reilly, who heads up the
developer’s PowerGen unit, said much
of its 80,000-hectare land bank is
ripe for further wind development.
Pre-planning is already underway on
a number of projects and community
consultations will start once Dublin’s
new wind farm planning guidelines are
published.
“Subject to some of the big issues
being resolved, we feel wind still has
a big role to play,” said Reilly. “That
doesn’t mean a wind farm at every
“...Community ownership...
isn’t by any means a slam
dunk... but we are certainly
willing to engage...”
crossroads or on every headland but
at appropriate areas to help Ireland
meets its decarbonisation objective in
a cost-effective way.”
Bruckana ticks the boxes when it
comes to “appropriate areas”. Built
on the expansive Templetuohy Bog
with turbines in three counties —
Tipperary, Kilkenny and Laois — the
site is a developer’s dream.
The state of Irish roads means haul
routes are a nightmare for developers.
Thanks to the nearby Lisheen zinc
mine, however, few upgrades were
necessary for Bruckana bar the
building of a haul route known as
road 23 across a section of bog. In
addition, many of the internal site
tracks already existed and just needed
upgrading.
Bruckana is aesthetically laid out to
compliment the long straight troughs
made in the bog during the peat
harvesting process and construction
faced little opposition from local
communities.
Brookfield’s Lisheen 1&2, much
of which has been
operational since
12
2009, is said to have
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18 June 2015
IRELAND 12
EMERGING FORCE: Bord na
Mona’s 42MW Bruckana wind
farm in County Tipperary
Photo: renews
11
eased the path.
However, with a
total of 44 turbines
spinning planners have said the area
is “approaching saturation”.
Future projects could find
themselves in the sights of organised
anti-wind groups, which are
ratcheting up efforts against the
industry. Reilly said Bord na Mona
is already looking at ways to solve
the issue, including community
ownership schemes.
“It isn’t by any means a slam dunk
in terms of how a project would be
structured but we are certainly willing
to engage with communities and
understand the level of interest,” he
said.
“(We will look at how) local
communities could feel they have
some sort of a stake in a wind farm
on Bord na Mona lands.”
Bruckana has had a few scrapes
along the way. During a recent site
visit, Siemens technicians were
preparing to remove the rotor on
turbine number 10 to replace the
main bearing on the manufacturer’s
3.0DD-101 model. Some repairs
have also been needed on Siemens
hardware at Mount Lucas.
Elsewhere on Bruckana, turbine
number 13 was out of action as
engineers worked on resealing
the main bearing rather than a full
replacement.
The wind farm was exporting 6MW
at the time of the visit with wind
speeds averaging 5.3 metres per
second on a below-average day in
the Irish midlands.
Bruckana will have better days as
it finalises its grid code compliance
tests and should cement Bord na
Mona’s potential as a coming force in
Irish renewables. •
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18 June 2015
IRELAND 13
Refit pours oil on
asset-buying fires
Wind investors
pile in while the
going is good
renews.biz
Investors remain keen on pumping
cash into Irish wind but the risk
profile will spike later this year as the
2017 Refit cut-off hits build timelines.
Developers report overwhelming
interest in for-sale projects of all
shapes and sizes despite a shortage
of assets on the block, which means
premium prices can be commanded
in a seller’s market.
The playing field has been levelled
to some degree by uncertainties
around business rates and policy
changes but developers with planning
approval and grid offers in place are
holding a strong hand.
Feilim O’Caoim of corporate law
firm McDowell Purcell said he expects
to see the mergers and acquisitions
market heat up in the coming months.
“Projects have to crystallise in the
market very soon because anyone
who is buying has to leave themselves
enough wiggle room to construct and
become operational before the Refit
deadline.”
Investors may take a step back later
in the year, he added. “You will see
investors like pension funds, which
have no appetite for risk, allowing
“...We’ve got to play capital
where we can get a good
return so we can only go so
far with pricing...”
developers to develop and consider
buying once constructed.”
UK-based investment fund Impax
Asset Management has been leading
the charge, recently acquiring the
construction-ready 18.4MW Lettergull
and 32MW Dromadda More projects.
Other investors such as NTR,
BlackRock, Glennmont Partners and
Brookfield are looking to add to their
recent Irish purchases in a bid to lock
in long-term returns.
Last year Glennmont lined up three
deals for Irish wind but got cold feet.
“We’ve got to play capital where we
can get a good return so we can only
go so far with pricing,” said the clean
energy fund’s Peter Dickson.
Even so, the prospect of longterm
returns is keeping it in the hunt
despite the emergence of risk.
“Obviously we don’t like it when
costs increase… We make our
investments with flexibility to absorb
quite a few shocks that occur
downstream,” he said. Barry O’Flynn of
financial consultancy EY said the high
level of investor interest is
down to policy stability.
“Ireland is at a competitive
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18 June 2015
IRELAND 14
PORTFOLIO BUILDER: Canadian
renewables player Brookfield’s
88MW Knockacummer wind
farm in Tipperary Photo: Brookfield
13
know they are getting
a market designed to
take on renewables.”
He added, however, that supply
cannot meet the demand for
construction-ready or operating
projects. “This year is still hot, there
is lots of money out there but there
aren’t enough projects. It’s a case of
people joining the queue if they want
to invest in Irish wind.”
Despite the bullish sentiment
the potential for policy change is
worrisome. An election is due within
12 months and some are concerned
“... if the people willing to
stand up and support us
cannot get elected then we’ve
got a problem...”
politicians may cling to anti-wind
fears to secure votes. Indeed, the
Irish industry is watching Whitehall
machinations as Conservative
backbenchers demand action on
anti-onshore election promises.
One high-profile international fund
manager said the sector is dealing
with the “political legacy” of the
Midlands export project. “The wind
industry has done a singularly poor
job in providing the other side of the
story in a way that can be explained
to the ordinary person.
“We have to ask for joined-up
government in a way that makes
these people electable because if the
people out there who are willing to
stand up and support us cannot get
elected then we’ve got a problem.” •
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18 June 2015
Banks pile
aboard the
Refit train
IRELAND 15
CASH GENERATOR: Energia’s
95MW Meenadreen wind farm in
Donegal, part of a €1bn financing
drive in Ireland by Nord LB
Photo: Energia
Financing window of
opportunity for
big-hitters and their
local project partners
but independents
left out in cold
renews.biz
Irish banks have re-entered the
domestic renewables sector in a big
way, offering attractive debt terms to
developers itching for financial close.
Led by Allied Irish, institutions are
aggressively targeting the small and
medium wind sectors where local
players are seen as having a stronger
hand due to their relationship with
more established development
companies.
“Irish banks are giving small
developers another option and are
keen to stress a long-term, local
approach with good accessibility,”
said a senior banking source in the
renewable sector. This has driven
down debt costs with developers
and bankers reporting up to one
percentage point cuts in terms on
offer.
Other domestic banks are keen
to muscle in on the large-scale
generation market in a bid to provide
debt and spread their risk. They
are finding it hard, however, to
displace the German and British debt
providers who can leverage lower
fund costs.
Among the more notable deals of
recent months is Nord LB’s financing
of Energia’s 95MW Meenadreen wind
farm in Donegal. “We’re mandated on
nearly 300MW this year, which is the
strongest year we have ever had in
Ireland,” Theodore Collins of Nord/LB
told renews.
The bank has released around
€1bn into the Irish renewables market
and is looking for more business
over the next two years. Collins said
there is a good supply of high-quality
projects in the pipeline with domestic
competition driving down financing
costs.
“At the worst time of the recession
we saw a margin 100 basis points
higher for Irish projects than UK
projects. That premium doesn’t exist
“...There is a finite period
where projects need to
be finalised to meet the
deadline that the system
currently has in place...”
any more and, with euro versus
sterling swap rates, the all-in cost of
Irish financing is lower than the UK.”
Securing project finance is set
to become more challenging in the
coming years, though, warned Nord’/LB
analyst Alan Harling. “Towards the
back end of 2016 it’s going to get
harder. In 2017 we don’t see many
deals being financed because of the
Refit deadline.
“There is a finite period where
projects need to be finalised to meet
the deadline that the system currently
has in place. With grid delays, planning
challenges and the recent Coillte
project being canned by An Bord
Pleanala, it’s going to be hard.”
Debt providers are examining how
the integrated single electricity market
will interact with current support
mechanisms but are more fearful of
what will happen post-2017.
“At the moment we are going from
having a Refit to a situation where
we have nothing at all,” said Harling.
“This needs to be sorted quickly
because there is going to be a point
when banks find it harder to finance
renewable projects. There could
potentially be a natural stoppage.”
Barry O’Flynn of EY is equally
cautious: “The market is full of
interest at the minute but this may
soften at the end of this year as
the Refit deadline approaches and
banks become more sceptical about
developer’s ability to build out and
commission their projects.”
While cheap debt is
currently being made
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18 June 2015
IRELAND 16
15
players with clear
project pipelines,
some independent
one-off developers are suffering,
according to Feilim O’Caoimh of law
firm McDowell Purcell.
“A lot of the lending in recent years
has been ‘relationship lending’ where
developers have large portfolios and
are delivering megawatts each year,”
said O’Caoimh. “But independent
developers struggle with the
availability of finance where you only
have one project with no big annual
relationship.”
As a result, this class of proponent
is struggling to convince banks to
loosen the purse strings.
O’Caoimh said this is likely to
lead to increased consolidation in
the wind sector with independent
projects put on the block in
increasing numbers. •
UK power demand key
to offshore ambitions
Industry pins hopes
on interconnectors
to Britain and
mainland Europe
renews.biz
Uncertainty about the long-term
future of onshore wind in the
UK could be the spark needed
to light Ireland’s offshore sector.
Irish Wind Energy Association
boss Kenneth Matthews is keeping
a close eye on policy movements in
Whitehall. Irish offshore wind, which
has been unsuccessful in securing a
state subsidy from Dublin, could plug
the gap if the British onshore industry
is hit hard by the new Conservative
government, he argued.
“If we get the scale right that is the
opportunity to trigger the industry in
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Ireland. The UK is likely to focus on
the cheapest offshore wind. Some of
the cheapest offshore wind in the UK
happens to be Irish offshore wind,”
Matthews said.
A deal to export wind power from
Ireland to the UK failed to materialise
last year after talks between Dublin
and London broke down.
However, industry sources are
confident potential new avenues may
open up for cross-border trading, in
particular for offshore output.
Insiders point to the ISLES joint
industry initiative, which is looking
at ways to join the Irish and Scottish
electricity grids to tap marine
renewables.
A study due out today in Dublin
is expected to name Fred Olsen’s
“...exploratory talks have
taken place between Irish
and French grid operators
about power exports to
France with wind players
keen to exploit mainland
European markets...”
220-turbine Codling and 55-turbine
Oriel wind farms as potential firstmover
projects for interconnections, it
is understood.
However, to date Ireland’s offshore
sector remains becalmed after the
much-hyped early promise. First Flight
Wind last December abandoned plans
for a 400MW wind farm off the Down
coast. The 100-turbine B9 Energy,
Dong and RES tie-up was canned over
changes to the UK’s subsidy scheme.
The partners also cited uncertainty
over electricity market changes.
Irish offshore sources confirmed
exploratory talks have taken place
between Irish and French grid
operators about power exports to
France with wind players keen to
exploit mainland European markets.
Initial studies by Eirgrid suggest
an interconnector with France would
be economically viable and a full
seabed analysis will be completed this
summer. •

18 June 2015
IRELAND 17
Dawn breaks for solar sector
But support
mechanism is vital
to project feasibility,
say developers
renews.biz
The solar industry is building a
head of steam in Ireland as the
government mulls committing
to a support mechanism later this
year. Intense lobbying of officials is
expected to ensure PV will form part
of the post-Refit 2 mix.
Major players are trying to get out
in front by signing option deals with
landowners across the southern
half of the country. Bidding wars are
underway for the best sites as solar
developers look to take advantage
of any policy changes in Dublin’s
forthcoming energy policy statement.
A number of international outfits
such as Amarenco, BNRG and
Lightsource have been joined by
domestic contenders like Gaelectric
and Bord na Mona. Several others are
considering dipping their toes in to
the market.
“Ireland’s got a late-mover
advantage,” said Irish Solar Energy
Association chief David Maguire. “It’s
one of the few countries that’s never
had a solar support mechanism and
because we’re late to the party we
can learn from the mistakes of other
European countries.”
Maguire said solar could help
increase renewables generation to
2020 without the need for further
significant grid investment. Yet without
a support mechanism of around €0.15
per kilowatt-hour and a reduction
in European import tariffs Irish
solar could struggle. “Solar is being
restricted in terms of competitiveness
and cost base by protectionism,” he
claimed.
Amarenco chief executive John
“...The price of the technology
will keep coming down...”
Mullins said a support mechanism
should only be made available for
sites with consent, financial backing
and a robust design in order to avoid
a rush of unviable projects.
Mullins, whose Irish plans are being
backed by Australian investment
group Macquarie, said 35 planning
applications for solar farms in the
southern half of Ireland will be
submitted this year.
The former Bord Gais man said
his company will follow the wind
industry’s efforts at getting community
buy-in. “We’ll go to local village halls,
put up the displays, talk about it and
answer any of the concerns that
people have,” he said.
However, without a stable support
mechanism, the game will be up. “In
Europe they are surprised that Ireland
hasn’t followed the lead of nearly
every other country,” said Mullins.
“The price of the technology will
keep coming down and you have to
start a market somewhere. But both
Macquarie and ourselves make it
very clear that unless there’s a tariff,
investors’ money is not going to get
deployed.”
Other companies are in preplanning
stages. Wexford Solar is
currently awaiting the outcome of
an appeal to planning body An Bord
Pleanala for a 5MW project in the
south-east.
Bord na Mona, Coillte and ESB
are understood to be examining
solar development while Gaelectric
is involved in UK projects in the
hope of building up the expertise to
take advantage of policy changes in
Ireland. •
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18 June 2015
IRELAND 18
SIGN OF THINGS TO COME: Gaelectric’s
42MW Dunbeg wind farm in Derry went
live last November
Photo: Gaelectric
North on verge
of quantum leap
Grid tops list of issues
that could trip up
major build plans
over next two years
renews.biz
A
shave over 30MW of wind
capacity will be added this year
in Northern Ireland, continuing
the province’s run of weak build
years.
Ever-increasing uncertainty over
grid connections is front and centre
in a spread of major issues damaging
developer confidence. Figures
compiled by renews show just four
projects scheduled for completion.
Despite concerns over the future
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subsidy mechanism for Northern
Irish wind, however, developers have
begun circling the wagons for a major
push in 2016 and 2017.
Next year is likely to see a
construction boom with at least
230MW set to go live. A further
105MW is confirmed for 2017 but this
will be swelled by the 170MW-plus of
consented projects without a clear
build timeline.
At least 416MW is in planning
and industry is hopeful of meeting
the further 850MW needed to hit
the magic installed capacity mark of
1600MW required to meet a 40%
renewable electricity target in 2020.
Northern Ireland Renewables
Industry Group chair Patrick
McClughan said 2016 is a “huge year”
but a range of risks could strangle
progress. The perennial problem of
the province’s grid is “nearing crisis
point” as system operator NIE’s cluster
substation timelines cause headaches
with the 2017 Renewables Obligation
deadline approaching.
“It’s been agreed a number of
clusters will be developed in the next
four or five years but we cannot wait
five years on a grid connection,” he
said. “We have planning permissions
ready to expire and large amounts
of capital allocated that will move to
other jurisdictions. NIE needs to move
quickly to temporary and pragmatic
connection solutions available at zero
cost to the consumer.”
Industry is willing to underwrite
the cluster strategy and will transfer
“...Even if (substation)
clusters are brought in it’s
still going to be a problem,
particularly the constraints
on generation...”
from temporary connections once the
cluster substations are complete. “It
is a win-win for everyone and deals
practically with an issue
where hundreds of
19
millions of investment

18 June 2015
NORTHERN IRELAND PROJECT COUNTDOWN
Due online in 2015
Project County Developer MW
Clondermot Derry Energia 2.3
Lisglass Antrim Energia 2.3
Molly Mountain Fermanagh Erne Concrete Pumping 15
Monnaboy Derry Gaelectric 12
TOTAL
31.6MW
Scheduled for 2016
Altaveedan Antrim RES 18
Brackagh Derry REG 6
Cloonty Antrim Gaelectric 12
Corby Knowe Antrim Gaelectric 5.4
Cregganconroe Tyrone Gaelectric 13.8
Crockandun Derry Brookfield 18
Eshmore Tyrone Energia 6.9
Gortfinbar Tyrone DW Consultancy 15
Inishative Tyrone Gaelectric 13.8
Long Mountain Antrim Energia 27.6
Ora More Fermanagh RES 12
Seegronan Tyrone Brookfield 13.8
Slieve Divena 2 Tyrone SSE 20
Smulgedon Derry Gaelectric 16.1
Tievenameenta Tyrone SSE 32.2
TOTAL
230.6MW
Coming in 2017
Brockaghboy Derry TCI Renewables 45
Crockbaravally Tyrone TCI Renewables 6.9
Crockdun Tyrone ESB 15
Eglish Derry ESB 27
Upper Ballyrogan Derry TCI Renewables 11.5
TOTAL
105.4MW
Consented, no build date
Altamooskin Tyrone DW Consultancy 6
Cam Burn Derry TCI Renewables 13.8
Castlecraig Tyrone RES 25
Craiggore Derry RES 18
Draperstown Derry REG 6
Draperstown Derry Creagh Concrete/REG 6
Glenbuck 2 Antrim TCI Renewables 15
Mullynaveagh Derry TCI Renewables 2.6
Pigeon Top Tyrone TCI Renewables 27
Pollnalaght Tyrone DW Consultancy 39.6
Teiges Mountain Fermanagh DW Consultancy 12.5
TOTAL
171.5MW
In planning
Ballyhanedin Derry Gaelectric 24
Beltonanean Road Tyrone Island Renewable Energy 12
Bessy Bell 3 Tyrone SSE 27.2
Carnalbanagh Antrim ABO Wind 28.5
Crighshane 2 Tyrone DW Consultancy 15
Doraville Tyrone SSE 128
Evishagaran Derry ABO Wind 35
Feystown Antrim ABO Wind 13.8
Gruggandoo Down ABO Wind 39.6
Murley Tyrone RES 20.7
Ora More 2 Fermanagh RES 6
Tullyneil Armagh Gaelectric 13.8
Windy Hill Derry Windyfields 52.5
TOTAL
416.1MW
18
could dwindle away,”
McClughan said.
TLT planning and
environment partner Andrew Ryan
warned, however: “Even if clusters
are brought in it’s still going to be a
problem, particularly the constraints
on generation. It’s difficult to see
those being reduced until the North-
South interconnector is built.”
Ryan said M&A activity has slowed
down with some banks reluctant to
“...We will bid in those auctions
and... we will win because
Northern Ireland wind is
cheaper and better than
wind in other parts of the UK...”
over-extend themselves. Once big
planning decisions are released later
in the year, he believes, cash will start
flowing.
Uncertainty reigns over what form
of subsidy will replace the RO. In a
consultation issued earlier this year,
the Department of Enterprise, Trade
and Investment questioned whether
Northern Ireland should adopt the
Connecting
the dots...
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Ireland, we always see the bigger picture.
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with a top-class asset management service.
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life-cycle, speak to one of our specialists today.
IRELAND 19
UK’s Contracts for Difference auction
system.
McClughan said industry was
“shocked” by the position and
flooded DETI with responses. The
NIRIG man believes Northern Ireland
is on the cusp of securing an RO
grace period to March 2018. He is
also confident CfDs will thereafter be
the province’s support mechanism
despite the negative mood music
played by the Conservative
government in Westminster about
onshore wind.
“If Northern Ireland doesn’t
complete electricity market reform
it would be the only area in the UK
and Ireland without any form of price
floor support for renewables,” he
said.
“But we are wholly confident that
CfDs will be available to us, that we
will bid in those auctions, and that
we will win, because Northern Ireland
wind is cheaper and better than wind
in other parts of the UK.”
As well as securing transitional
relief from rates increases, 11 new
super-councils took over planning
functions in April in a bid to speed up
the approvals system. Energia boss
Peter Baillie said the decentralisation
of planning may see pressure put
on councils to oppose wind farm
development. •
31
29 30
28
27
26
25
13 24
72
14 23
12
15 22
SERVICES AND CONSULTANCY
ADVISORY ENERGY RESOURCE PRE CONSTRUCTION
CONSTRUCTION OPERATIONS
Dublin: +353 (0)1 8455031 | UK: +44 (0) 117 301 7133
E: info@windprospect.com
www.windprospect.com
46
47
48
50
58 57 56 55 54 53 52
51 49
59 60
68
61 62 63 64 65 66
67
69 7071
73
74
75
76
77
78
79
80
33
32
45
34
11
10
9
8
7
6
5
4
3
2
1
44
35
16
40
41
39
42
38
43
36
21
17
20
18
19
37

18 June 2015
IRELAND 20
TIME AND TIDE: the site of the Fair
Head project off County Antrim in
Northern Ireland, where a planning
decision is expected shortly
Photo: DP Energy
But ocean energy
sector hardware yet
to make grade
renews.biz
SeaGen keeps seat at
Fair Head tidal project
DP Energy is sticking with MCT’s
SeaGen turbine technology for
the first phase of its 100MW
Fair Head tidal project in Northern
Ireland after the former Siemens outfit
was snapped up by Atlantis Resources
in April.
The Cork-based developer’s chief
executive Simon De Pietro said Siemens’
sale had caused “some uncertainty”
but after recent talks with Atlantis
and the MCT team it is now pressing
ahead with its chosen turbine supplier
and FP7 funding remains in place.
A planning decision for the initial
10MW array off the Antrim coast
is due soon. An application for the
remaining 90MW will be filed later this
year.
Environmental impact assessments,
seabed analysis and grid connection
studies are all ongoing. DP hopes
to wrap up this work in the coming
months.
Also in County Antrim, Canadian
behemoth Brookfield Renewable has
taken over from Bord Gais on the
100MW Torr Head tidal tie-up with
OpenHydro. Environmental impact
investigations are underway ahead of
a consent application due this year
for the initial 30MW phase planned
for 2017.
In the Republic, flagship 5MW
pre-commercial array WestWave’s
developer ESB is in talks with a range
of technology partners with none
yet meeting the required readiness
threshold. The project, in County
Clare, will open in 2018 at the earliest
but nailing down a timeline is virtually
impossible with hardware still well off
the pace.
Technology remains the elusive final
piece of the jigsaw in the Republic with
a marine Refit due in 2016, prototype
to full-scale testing sites nearing
deployment, a streamlined consenting
process on the horizon and onshore
infrastructure development well in
train.
Next month, the Irish Maritime and
Energy Resource Cluster’s €15.2m
Beaufort research building will be
officially opened. Construction on
IMERC’s Cork campus began last year
with the aim of bringing together
researchers and industry to support
development of ocean energy
projects. •
Gaelectric in vanguard of energy storage revolution
Gaelectric has identified two
sites elsewhere in Europe
where it could replicate
its planned 330MW Islandmagee
compressed air energy storage
system (CAES) in Northern Island.
The Dublin-based renewables
group said it has substantially
progressed proposals for a 268MW
CAES facility in Cheshire in the UK and
a 330MW plant in the Netherlands.
A planning application for the
330MW scheme at Islandmagee near
Larne will be lodged with officials
within the next three months, sources
confirmed. The company hopes to
develop the Cheshire and Netherlands
projects in parallel.
Studies have discovered sufficient
salt deposits required to host the
massive underground compressed
air caverns at all three locations.
Earlier this month, FTI Consulting
released a study stating Larne could
spark a Europe-wide expansion of the
technology.
Barry Gavin of Gaelectric told
renews that utility-scale and local level
storage systems are the missing link
in the decarbonisation transition. “The
old energy model of hub and spoke,
where big centralised generators
distribute over wide networks, is
broken,” he said.
“Utilities are being forced to
reorganise, driven primarily by solar,
wind and biomass. Big industrials
are self-generating, which is creating
opportunities.”
As well as CAES technology, battery
energy storage will play an increasing
role in Ireland. Gaelectric said in May
it would partner with US electric car
outfit Tesla to trial a new 1MW utilityscale
battery, the first of what the
partners hope will be many projects.
“Whether it’s on solar or wind,
local or grid level, storage will be key
over the coming years,” said Gavin.
“With renewables there are huge
opportunities but also challenges to
the industry as a whole. Storage is
vital if we want renewables to reach
full penetration.”
In a first for Europe, US energy
storage company Beacon Power
plans to build a 20MW hybrid battery/
flywheel plant in Offaly. The project
is being implemented by Irish
company Schwungrad Energie and the
Department of Physics and Energy at
the University of Limerick.
Construction has begun on the
320kW first phase, which features
two 160kW flywheels, with completion
pegged for next year. The site will
store renewable electricity from the
grid via two-metre long carbon fibre
spinning tubes, which are floated on
magnets and buried in the ground.
When grid demand requires extra
power, the power can be pumped
back into the system.
Elsewhere, a 10MW battery storage
set-up is currently being installed
at the AES Kilroot coal-fired power
station in Northern Ireland.
In April, AES issued a tender
seeking suppliers of lithium-ion
batteries, inverters and balance of
plant contractors. The company said
it expects to award the three contract
lots in July and deploy the initial 10MW
storage system by the end of the year.
The company is working towards
installation of a 100MW project,
Europe’s largest battery installation, in
2017. •

18 June 2015
IRELAND 21
Publisher Renews Limited
First Floor, St George’s House,
St George’s Street, Winchester,
Hampshire, SO23 8BG, UK.
ISSN 1478-307X
© All articles appearing in renews are protected by
copyright. Any unauthorised reproduction is
strictly prohibited.
Editorial
Biomass hoping for
break-out moment
Editor Todd Westbrook
+44 (0)1479 873 167
todd@renews.biz
Deputy editor Sian Hewitt
+44 (0)7900 684987
sian.hewitt@renews.biz
<strong>Feature</strong>s editor Tim Probert
+44 (0)1892 534478
tim@renews.biz
UK offshore Martin Halfpenny
+44 (0)1962 890 479
martin@renews.biz
Germany offshore
Hans-Dieter Sohn
+49 177 288 9015
hans@renews.biz
France offshore Lisa Louis
+33 627 933 453
lisa@renews.biz
North America Patti Lane
+1 416 481 9795
patti@renews.biz
Ireland Stephen Dunne
+353 87 760 9207
stephen@renews.biz
Solar Sian Crampsie
+44 (0)7711 007277
sian@renews.biz
Technology Eize de Vries
+31 6133 18104
info@eizedevries.com
Production Richard Crockett
production@renews.biz
Publisher Dan Rigden
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dan@renews.biz
Sales
Sales manager Cassi Davison
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Domestic fuel
supply chain ready
and waiting for
demand to take off
renews.biz
Construction is due to begin
this month on the 42MW
Killala wood-fired biomass
plant in County Mayo, providing a
much-needed fillip to the wider Irish
bioenergy industry.
Mayo Renewable Power’s €180m
combined heat and power project,
the largest yet seen in Ireland, is
scheduled to go live in 2017. Backed
by US investment company Weichert
Enterprise, Killala is being built by
John Sisk & Son with engineering
consultants Arup and Merrimac
Associates also on board.
Irish BioEnergy Association general
manager Michael Hegarty said the
plant represents a significant boost
for the domestic industry even if
imported fuel will be required to
satisfy demand in the short term. “It’s
a signal bioenergy is important from
the perspective of achieving Ireland’s
renewable targets and for biomass
providers as well,” he said.
IrBEA reports that land set aside for
fuel crops has doubled in recent years
as a result of significant national and
international investment. A mature
supply chain is now in place offering
lower-cost domestic feed-stocks to
electricity and heat generators, the
group claimed.
Yet the market has stalled due
to sluggish demand. “Thinnings are
coming on stream or are available
now but farmers need a decent return
on that investment,” said Hegarty.
“That’s where there is a market failure.
The demand needs to come from
industry.”
An attractive successor to the
current biomass-focused Refit 3
support regime, which pays €125.09
per megawatt-hour to large-scale CHP,
is required alongside transparency
about the renewable heat inventive
due in 2016, the association added.
Dublin’s Energy Department is
working on both policies but more
urgency needs to be shown to
encourage investment, Hegarty
insisted. “Until there is clarity on
qualifying criteria people won’t invest
because they are afraid they might
miss out on the payments.
“Incentives must be set at a level
that is competitive with current fuel
sources, be they natural gas or oil. It’s
essential the tariff and RHI stimulate
the switch to renewables.”
Once Dublin settles on its future
biomass policy, many companies
are in a position to follow Killala’s
lead. “There is no question about
the interest, it’s just that the market
is waiting for the signal, clarity and
commitment from the government,”
Hegarty said.
Much of the indigenous biomass
expertise has flooded into the UK
market due to inertia in Ireland. •
Coming next in our series
of in-depth market reports:
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GREEN PASTURES: the 42MW Killala plant will eventually burn locally-grown willow
Photo: Mayo Renewable Power