Ireland's €8 Billion Windfarm Windfall

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Ireland is in line for an €8 billion ($9.7 billion) windfarm boom following the signing of an electricity export deal with the U.K.'s electricity grid operator, National Grid.

Element Power (Portland, Oregon) has confirmed that its Irish arm, Element Power Ireland, has been awarded a 'firm' grid connection of 3,000 megawatts (MW), clearing the way for it to start investing in 40 proposed windfarm projects in the midlands of Ireland. The company claimed that the total investment in its 'Greenwire' initiative could top €8 billion and result in the creation of up 10,000 construction jobs and 3,000 long-term positions.

The term 'firm' connection means that the U.K. power market can take the electricity generated at all times, and will result in €1.2 billion ($1.45 billion) worth of energy exports annually from the Irish economy. This is the first time that National Grid has offered this kind of connection to an Irish renewable energy exporter.

"Greenwire is a particularly timely project which will enable the economy to harness our renewable energy resources to our economic advantage," commented Element Power Ireland CEO, Tim Cowhig. "The U.K. energy requirement has become Ireland's opportunity, it makes perfect sense to capitalise on our geographic location and create an export industry. In anticipation of getting U.K. grid connection, the company has been working in Ireland over the past two years identifying potential wind farm sites, speaking with local authorities, working with environmental consultants and reaching agreements with land-owners. This is an important step in enabling the project and helping us to meet our target of exporting renewable energy to the U.K. by 2018."

Julian Leslie, Head of Electricity Customer Services at National Grid Transmission added: "National Grid is delighted to be signing this grid connection agreement for 3,000 megawatts with Greenwire. This agreement will break new ground by connecting wind generation in Ireland directly to the U.K. transmission system".

Ireland and U.K. took steps recently to promote greater sharing of renewable energy. In June, Ireland's Energy Minister, Pat Rabbitte, met with U.K. Minister of State for Energy, Charles Hendry, in London to discuss renewable energy trading. A formal Memorandum of Understanding (MoU) on renewable energy trading between the two countries is expected by the end of the year.

Charles Hendry said: "Optimising the natural renewable resource around our islands would benefit us all. As we face a future where we will be increasingly dependent on imported fossil fuels and understandable concerns about costs, it is absolutely sensible to look at how we can share the clean, green energy which our neighbours have in abundance."

Ireland and the U.K. are already working on connecting their grids. Last October, the first project to link Ireland's grid with the U.K. grid started. The €600 million ($764 million) East-West Interconnector project involves laying 180 kilometres (km) of undersea and approximately 80km of underground cables between Rush in County Dublin to Barkby Beach in Wales. For additional information see October 28, 2011, article - Ireland-U.K. Interconnector Project Begins.

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