Energy Bridge Delivering Irish wind energy to GB before 2020
Mutual difficulties present mutual opportunities Ireland needs to attract investment Ireland needs to create jobs Ireland needs to export more Government needs money UK needs energy UK needs renewables UK grid needs reinforcement
Ireland & UK 2020 Targets Synergy Ireland Electricity from Renewables by 2020 40% Equates to 4 GW installed by 2020 Currently 2 GW installed 0.25 GW p.a. required to reach target 16 GW waiting in Grid Queue Only requires 12.5% of current grid queue to reach target Irish Wind potential = 345 TWh p.a. Equates to 19 x market size Significant opportunity to export UK Electricity from Renewables by 2020 30% Equates to 35 GW installed by 2020 Currently 8 GW installed 3.3 GW p.a. required to reach target 22 GW in Grid Queue Shortfall of 5GW UK only installed 0.7 GW in 2011 Strong possibility of missing targets DECC now consulting on RES trading In addition to helping UK meet RES and GHG targets also assists with capacity margin 2018-2020+
No Negative Impact on Irish Wind Industry Only 1/3 of gate 3 connections required for 2020 targets Development focused on west coast Highest winds Significant portions of inland wind potential that cannot be absorbed onto the Irish system Latest technology turbines makes generation feasible at these new locations
Development Pipeline Onshore Ireland Mainstream currently developing large portfolio of onshore wind Up to 2 GW potential All sites designated suitable for wind by local county development plans Planning Consents by 2015 Will feed directly into 2 central VSC Underground 320kV DC cable to east coast All Transmission Lines underground Operates independently of Irish Network
Onshore and offshore connection Annual exports of renewable energy of c. 1.0 billion Investment in power generation of c. 7.5 to 13.75 billion Investment in transmission facilities of c. 6.0 billion For comparison Irish food and drink exports to UK 3.9 billion - 2011
Energy Bridge Transmission Consortium MoU in place between Mainstream and: National Grid Electricity Transmission Owns & Operates UK transmission grid 27,000 employees Revenues of $14bn Own multiple assets similar to EB France / Netherlands / Belgium / Norway / Iceland REN: Operates Portuguese transmission grid 750 Employees Revenues of $1.2bn State Grid Corporation China : Owns 25% stake in REN 1.6m employees and $315bn in assets Working in partnership to Define technical and financial parameters influence the political and regulatory agenda This consortium has the expertise to develop, design, finance, construct, own and operate a 5GW transmission facility
UK and Ireland agree MOU on the desirability of Irish exports of wind energy to UK before 2020 signed by both Governments late 2012 Intention to reach an Inter Governmental Agreement on the doability of the project late 2013/ early 2014 Joint Governmental and Regulatory Steering Board set up first meeting February 2013 UK DECC and developer workshop May 2013 What is the UK Government s position?
DECC - The desirability of trading
DECC - The doability of trading 1 3 4 2
The key issues 1. Lack of precedent Work with both Governments to give comfort on do-ability 2. Technical policy questions No regulatory show stoppers to Energy Bridge may need additional Ofgem/ CER guidance issue is to move Regulators to the appropriate time table 3. Political framework DECC looking for reassurance on Energy Bridge critical path is pre 2020 feasible? Supply Chain a win win for both countries if done right particularly over the medium term as markets combine 4. Timing DECC recognise EB can deliver additional resource pre 2020 Further engagement with DECC on project timelines and supply chain critical path issues
DECC - The timeline to an IGA Timing is critical First UK-Ire working group held Feb 13 EB team engaging with ORED on project details Push Ofgem and DECC on network issues can t drift into 2014 Vital that IGA is agreed in 2013
Thank you Contact: - Adam Bruce Mainstream Renewable Power 140 London Wall LONDON EC2Y 5DN adam.bruce@mainstreamrp.com