The Giveaway Of Ireland’s Wind Energy - Case Study: Arklow Bank
There is an energy revolution happening in Ireland. The days of near total reliance on imported fossil fuels are slowly, but steadily coming to an end. Over the next decade the demand for green electricity is going to rise dramatically as we move away from our reliance on coal, gas and oil for transport, heating, lighting, cooking, agriculture and industry.
Among the various sources of renewable energy that will meet an increased demand for green electricity, the wind is king. In 2019, 32.5% of all electricity consumption in the Twenty-Six Counties came from wind turbines. The equivalent figure in the Six Counties was even higher at circa 37%.
By 2030, it is anticipated that 70% of all electricity will be generated from renewable resources, with perhaps 90% of this figure coming from wind turbines.
This energy revolution is being driven by the need to combat man-made climate change - a topic that has, rightly, been discussed at great length over many years. But the pace of that revolution is being controlled by the private companies that have been gifted effective control of the energy sector by successive governments over several decades.
At no point during that time has there been a meaningful public discussion about the ownership of Ireland’s renewable energy sources - no discussion about who owns the wind and who stands to profit from harvesting it.
To highlight the giveaway of Ireland’s wind energy resources to private corporations, Éirígí For A New Republic is publishing a series of case studies about existing and planned wind farms. You can view the case study into the proposed Dublin Array Wind Farm here.
Location: The Arklow sand bank, 13km off the coast of Co Wicklow.
Electrical Production: The completed project will consist of an estimated 107 wind turbines which will produce circa 545MW of energy. That’s enough energy to power more than 436,000 homes for one year - the equivalent of about one in every six Irish homes.
Ownership: The existing seven wind turbines from Phase One are owned and operated by GE Renewable Energy, a subsidiary of the giant US corporation General Electric. The British energy company SSE hold the foreshore lease to develop Phase Two of the Arklow Bank project.
Status: While the seven turbines from the ‘demonstrator’ Phase One of the project have been operational since 2004, there has been no further turbines erected in the intervening 16 years. The SSE website currently (June 2020) states that “SSE is proposing to invest €1-2bn to develop Arklow Bank Wind Park to its full potential”.
Estimated Cost Of Development: It was reported in 2005 that Phase One cost €45m to develop. General Electric have estimated the cost of fully developing Phase Two at between one and two billion euro.
Potential Revenue: The monetary value of the electricity produced by a completed Arklow Bank wind farm will be determined by the market cost of electricity over the operational lifetime of the project.
As of June 2020, SSE Eirtricity is charging their domestic customers 14.86cent per KW of electricity (money guide Ireland website).
At 15 cent per KW a fully completed and operational Arklow Bank would generate €275,000,000 (€275m) in revenue annually. This would equate to €5,500,000,000 (€5.5bn) of total revenue over the expected 20 year life cycle of the project.
Any wind farm on this scale is clearly of strategic national importance for a number of reasons including energy independence, climate change and the economy. Why should areas of such critical importance be left in the hands of the private sector?
Éirígí believes that Ireland’s vast natural resources, including renewable energy resources, should be held in public ownership to be used in a sustainable manner for the collective benefit of the Nation. You can read more about Power To The People campaign here.
For the last fifteen years our activists have been to the fore of the fight for democratic control of our natural resources. If you want to join that fight, get in touch with us today here.