Ireland 2030: The Future of our Energy Economy · 2018-09-25 · Officer, NTR Partner, Greencoat...

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Thursday 20 September 2018

#mhcenergy

Ireland 2030: The Future of our

Energy Economy


Eoin Cassidy, Energy Partner, Mason Hayes & Curran

Welcome

#mhcenergy


Leader of the Green Party / Comhaontas Glas

Eamon Ryan TD

#mhcenergy


Manager of Operations, Planning & Innovation, EirGrid

Jon O’Sullivan

#mhcenergy

Jonathan O’Sullivan

Manager Innovation

2030 – Pioneering Frontiers again!

Five trends that will shape our industry

Climate

Change

Internet of

Things

Energy Security

Tackle Fuel

Poverty

Electrification

..which will impact on energy financing

IEA WEO 2017

Technology adoption getting quicker

* Based on analysis of National Renewable Action Plans (NREAPs) as submitted by Member States

So why is Ireland relevant…?

Regional Policy Developments to 2020

And we have studied pioneering levels…

Wind Curtailment Levels Maximum Allowable Real Time Wind Level

Which we are managing today….


What is needed for a market to work?

Structure Design

Copyright EirGrid/SONI 2007

… and redesigning Market for investment

• Financial Mix will move to

higher capital lower variable

cost technologies

• Incentivise performance to

obtain the plant mix that

matches the system

requirements and achieves

the policy objectives

Ancillary Services

Capacity Payments

Energy Payments

System Services

Capacity Payments

Energy Payments

Var

iab

le C

ost

C

apit

al c

ost

s +

retu

rn

Today Tomorrow

Tomorrow’s Energy Scenarios

Changing characteristics

Data Centers EV and Storage New RES-E

And how does this relate to Europe… 2010 2020 2030 2040 2050

19% 39%

Energy Mix Heat & Transport

Electricity

18%

55%

42% Electricity Mix

RES-E

Potential RES-E


http://www.worldatlasbook.com/images/maps/europe-map-blank-printable.jpg

So to infinity and beyond

Incentivise and Influence

Command and Control

IRE-land 2020

Tech Giants

centralised large units distributed units

ene

rgy

lifes

tyle

So what for Policy makers…….?

So what for Regulators…….?

So what for Investors…….?

So what for Inventors…….?


Chaired by Rory Kirrane, Partner, Mason Hayes & Curran

Industry Panel

#mhcenergy


Managing Director,

SSE

Stephen Wheeler

Engineering Director,

Element Power

Peter Harte

Commercial &

Regulatory Director,

Ervia

Brendan Murphy

How energy transition will impact Conventional

energy, on-shore wind, off-shore wind, solar; and

battery storage & grid system

Founder, Host in

Ireland

Garry Connolly

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Chaired by William Carmody, Partner, Mason Hayes & Curran

Industry Panel

#mhcenergy


Head of Renewable

Energy, Bank of

Ireland

Eoin Hartigan

Senior Manager,

Energy, Climate

Action &

Infrastructure, AIB

Jim Arigho

Director of Project

and Infrastructure

Financing , Natwest

Gauri

Kasbekar-Shah

Financing & Route to Market – What will the

challenges be; current trends; corporate PPAs;

attracting funds to finance investment in energy

Chief Investment

Officer, NTR

Manus O’Donnell

Partner, Greencoat

Capital

Paul O’Donnell

#mhcenergy


Chaired by Vanessa Byrne, Partner, Mason Hayes & Curran

Industry Panel

#mhcenergy

Dr. Matt Kennedy

Head of Strategy and Business

MHC, 20.9.2018

• Irish Government supported, collaborative energy research centre that responds to industry-

driven energy challenges within the commercial and residential sectors

• Hosted in the Tyndall National Institute, Cork

Our Story

Enerport: Distributed Ledger

Barriers to communities

• Skills, expertise and technical

capabilities of community groups to

plan, develop, negotiate contracts,

finance, build and then operate RES

projects;

• Challenges of setting up a community

organisation and securing the wider

support of other local residents that are

not members or investors in the

community organisation;

• The difficulties in obtaining finance for

the project

Cases

• Australia, Canada, Denmark, Germany, UK

• 26 community wind projects

• 39 community solar projects

International Evidence

© Iea-retd.org, Cost and financing aspects of community renewable energy projects , Fin-Community, 2016

Financing

• Community development costs tend to

be higher than commercial projects.

(first time/ skills);

• Community construction & operating

costs are similar to commercial

developers;

• Debt finance is more expensive for communities, also anecdotal evidence

that banks lend smaller amounts than

they lend to commercial developers;

• Equity can often be cheaper to secure

as community investors happy to

receive a rate of return slightly above

bank saving rates;

• Commercial & community projects

often end up with a similar weighted

average cost of capital.

Government could

• Provide clear guidance on what

different legal community entities can

and cannot do (e.g. around dividend

distribution, or needing to engage with

authorised financial intermediaries);

• Prepare standardised shared ownership

contracts to reduce legal fees;

• Work with the community sector to

develop authoritative ‘how to’ guides;

• Decide whether separate preferential

support should be given to communities

to enable community projects to be

spread across the country;

• Encourage social ventures to form to

help communities negotiate better

prices for electricity sold.

International Evidence

© Iea-retd.org, Cost and financing aspects of community renewable energy projects , Fin-Community, 2016

35

The IERC acknowledges the support from both the Department of Business, Enterprise & Innovation and the Department of Communications, Climate Action & Environment

Thank you

[email protected]

Definition

A Sustainable Energy Community (SEC) is a community in which everyone works together to develop a sustainable energy system for the benefit of the community.

This is achieved by:

• aiming, as far as possible, to be energy efficient

• using renewable energy where feasible

• adopt smart technology solutions

The Journey

Learn Step

• SEC Handbook

• Energy Master plans

• 10K-25K

• 100% funding

• Energy use baseline

• Register of opportunities

• Develop 7 competencies

Plan Step

Do Step

202

Network

Members

51 Energy

Master

Plans

54

Community

Projects

The Achievements 2012 -2018

17,000 home

upgrades

2000 Non

domestic

upgrades

540 GWh

saved

€300 Million

Invested

€125 Million in

support from

The RESS

• Communities have been investing in energy efficiency

• Now turning towards investing in renewables

• RESS provides an opportunity for community scale renewable investment

• New partnerships emerging locally

• International models for share ownership can be adopted.

• Needs leadership and simple processes – AVOID LEGAL COMPLEXITY

www.seai.ie

The THANK YOU

[email protected]

Energy Projects

and the

community

Deborah Meghen

Director of Strategy and

Innovation

Community

Seek Partnership with the Community

Understanding the Community

Open and Honest Engagement

Respect Community Decisions

Coillte Engagement Model

Time

Effort

Commitment


Head of Business

and Strategy, IERC

Matthew Kennedy

Head of Department

Emerging Sectors,

SEAI

Declan Meally

Director of Strategy

and Innovation,

Coillte Land

Solutions

Deborah Meghen

Energy & the Community Focus Panel – Community

equity participation in energy projects; smart cities;

SEAI grants and micro generation; planning and

environment

Head of

Responsible

Investment, Ireland

Strategic

Investment Fund

Emma Jane Joyce

Head of

Communications &

Public Affairs, IWEA

Justin Moran

#mhcenergy


Environment and Science Editor, The Irish Times

Kevin O’Sullivan

#mhcenergy


Thank you

#mhcenergy

Ireland 2030: The Future of our Energy Economy · 2018-09-25 · Officer, NTR Partner, Greencoat...

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