Monthly Archives: May 2023

Following the publication of the provisional results last week of the first auction under the Offshore Renewable Electricity Support Scheme (ORESS) (see our previous article here), all eyes will be on the four successful offshore wind farm proposals under ORESS (ORESS Projects).

It is hoped the ORESS Projects will provide a combined capacity of 3,074MW as a contribution to Phase 1 of Irelands offshore wind energy development programme.

The ORESS Projects already hold Maritime Area Consents (MACs), which allow them to apply for development consent from An Bord Pleanla (ABP). ABPs new marine/offshore renewable energy function will decide these development consent applications. The new function is currently being established and staffed with experts, consultants and panelists in the fields of marine geology, marine engineering, marine biology, marine archaeology, and other fields relevant to offshore wind farm development.

Application Process for Development Consent

Applications for development consent for offshore renewable energy projects will be made under the Planning and Development Acts 2000-2022 (PDA) (a new Part XXI was inserted into the PDA by the Maritime Area Planning Act 2021). This is similar to the process governing applications for permission for strategic infrastructure development (SID). The applications are made directly to ABP (following pre-application consultations). The process of applying for development consent incorporates the requirements of the Environmental Impact Assessment Directive (EIA Directive) and the Habitats Directive. Public participation is included as part of the process. Almost all of the ORESS Projects are in pre-application consultations with ABP regarding ABPs expectations concerning the development consent applications.

ABP has the power to hold oral hearings and must give reasoned decisions within 18 weeks of the lodgment of the application (or such later period as ABP requires). This mandatory timeline is similar to that provided for Large Scale Residential Development.

Crucially, and similarly to the SID provisions of the PDA, ABP can approve amendments to planning permission granted for relevant offshore development, subject to the obligations imposed under the EIA Directive and the requirements for public participation. The facility to amend development consents is key given the fast-moving nature of the technology used in offshore renewable energy developments.

Judicial Review

As with development consents granted onshore, decisions granting development consent for offshore development can be subject to judicial review. To obtain leave to apply for judicial review, a challenger must show that they have a sufficient interest in the matter and substantial grounds to challenge the decision to grant the consent.

It is worth noting that the draft Planning and Development Bill 2022 (intended to introduce a range of changes to the planning regime) proposes changes to the judicial review provisions of the PDA, including tightening standing requirements and allowing ABP to correct errors in its decisions in response to judicial review. See our previous article here.

Possible Issues that May Arise

Commercial fisheries interest groups and coastal communities have expressed concern about future impacts from the Phase 1 offshore wind projects. The concerns are based on the extensive size of the marine area proposed to be covered by the Phase 1 projects and the fact that, for the most part, they are to be located within 12 nautical miles from shore. This emphasises the need for developers to pay close attention to these concerns in their non-statutory consultations/liaisons with stakeholders at the pre-application stage and, later, and more formally, in the Environmental Impact Assessment Reports (EIARs) accompanying their applications for development consent.

In addition, developers will need to ensure that they have appropriate technical and legal advice to support their applications for development consent. Neither EIA nor AA / AA screening was required to be carried out at MAC stage; consequently, it will be carried out as part of the application for development consent to ABP. The process of collecting and compiling the data needed to inform the EIARs and AA Screenings/Natura Impact Statements (NISs) has been underway for the past 12-24 months by the ORESS Projects.

The EIARs and AA screening reports / NISs must be carefully prepared, to give ABP the information it requires to carry out the assessments. Developers of offshore projects will need to have regard to issues of cumulative assessment and potentially even transboundary impact assessment.

EIA scoping will be crucial. The Maritime Area Planning Act 2021 makes provision for applications for development consent to ABP regarding offshore wind farms to cover, in addition to the offshore infrastructure, the landfall infrastructure and the onshore elements. Development proposals will need to demonstrate a wide range of expertise in relation to the offshore environment, which is very different from the onshore environment. The sea birds, marine mammals and fish in these particular offshore environments must be considered by appropriate expert consultants. Regard will also need to be had to commercial fisheries, navigation, and underwater archaeology.

Developers should ensure that they have engaged consultants with specific expertise in the qualifying interests of the many coastal/marine SPAs and SACs around Ireland for the purposes of the AA screening reports and NISs.

Summary

In summary, the PDA has been amended to facilitate a speedy and efficient application process for offshore development consent, which includes requirements under the EIA and Habitats Directives. However, judicial reviews (which have the potential to delay developments) are often centered around perceived deficiencies in EIARs and NISs. Therefore, developers should ensure they have engaged a specialist team of technical and legal advisors with appropriate expertise before finalising the important application for offshore development consent.

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Offshore Development Consents - the Next Step Towards Meeting ... - Lexology

Belgian electricity transmission system operator (TSO)Elia and Port of Ostend have signed a concession agreement that covers the construction of a service centre for the TSOs offshore activities.

The agreement marks the first step in the construction of a new multi-purpose building at the heart of the Port of Ostend.

The site on which the centre will be built is located along the quay near 14 Esplanadestraat. Elia said that its location along the quay will be ideal for operations carried out at sea.

The invitation to tender for the buildings design was launched last week. The building will include a multifunctional space (500 square metres) which will serve as a centre of expertise and will be used to host visitors as well.

The site will cover an area of approximately 3,000 square metres and will accommodate a number of buildings and activities, such as a control room to monitor Elias offshore activities and a warehouse that will be used to store construction equipment and spare parts.

Up to 30 people will work in the offices on site while two-thirds of these individuals will be technicians who will regularly carry out offshore inspection and maintenance work.

The site will serve purely administrative and operational purposes.

The building is planned to be commissioned at the end of 2025.

Belgium currently has a total offshore wind capacity of 2.3 GW (nine wind farms), which will grow to 6 GW by 2030 due to the development of a second offshore wind zone, namely the Princess Elisabeth zone.

The country is also planning to construct new subsea interconnections that will allow offshore wind energy generated in other zones to be transported to the mainland.

To achieve this, Elia will build numerous offshore assets over the next decade, the Belgium TSO said, such as the artificial Princess Elisabeth Island and subsea interconnections that will run from Belgium to the UK (Nautilus) and Denmark (TritonLink).

To build and maintain this infrastructure, an onshore support base is needed and thats why Elia chose the Port of Ostend since it is an important offshore wind energy hub, said the company.

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Port of Ostend to House Elia's New Offshore Wind Service Centre ... - Offshore WIND

BUFFALO, N.Y. The University at Buffalo Center for Industrial Effectiveness (UB TCIE) has secured a $500,000 grant from the New York State Offshore Wind Training Institute (OWTI) to accelerate the development of New York's offshore wind workforce.

The project, entitled "Leveraging the Power of SUNY to Achieve NY's Offshore Wind Energy Goals," seeks to increase awareness of offshore wind careers among New Yorkers by leveraging existing resources and networks.

It will provide information and opportunities to displaced workers and those who have been historically underrepresented in STEM (science, technology, engineering and math) careers.

We are grateful to SUNY and the OWTI for this award to help grow New York States offshore wind industry. We look forward to working with the OWTI and our project partners at Alfred State College, Farmingdale State College, Stony Brook University, Goodwill of Western New York and Northland Workforce Training Center to connect Western New Yorkers with training that leads to good-paying jobs in offshore wind, says Timothy Leyh, UB TCIE executive director.

To accomplish these goals, the project will begin with a listening tour of the Western New Yorks offshore wind workforce development ecosystem to gather data from industry, community-based organizations and training institutions. This information will be used to update an existing online course, Renewable Energy: Fundamentals and Job Opportunities, which teaches foundational concepts related to a range of renewable energy careers and culminates with an exploratory project where learners chart the course to their ideal occupation in clean energy.

Jennifer Flagg, project director at UB TCIE, says, We are excited to expand and update the renewable energy courses wind energy content to showcase recent offshore wind developments across the state, and highlight programs that impart the skills and knowledge required to excel in this high-growth industry.

Beginning in 2024, project leaders will host lunch and learn events at venues across Western New York inviting interested parties to speak with industry representatives and learn about SUNYs many renewable energy professional education and degree programs, including the renewable energy course. Interested parties are encouraged to visit the SUNY Clean Energy Consortium webpage, where project updates will be posted regularly.

Overall, this project has the potential to create significant economic opportunities and support the growth of a sustainable offshore wind industry in New York, project leaders say, adding that by leveraging existing resources and networks and partnering with key stakeholders, UB TCIE and OWTI are well-positioned to help the state achieve its climate goals.

About OWTI The Offshore Wind Training Institute is administered by Farmingdale State College and Stony Brook University in partnership with the New York State Energy Research and Development Authority. The institute will award approximately $8 million in funding to SUNY and SUNY-affiliated institutions to create, expand or improve SUNY-based programs that can demonstrably prepare students to pursue careers in the offshore wind industry, as well as create programs that assist working professionals seeking to transition into the offshore wind sector.

About UB TCIE As an industry outreach arm for the UB School of Engineering and Applied Sciences, UB TCIE is a professional and continuing education powerhouse focused on workforce development and operational excellence. An active contributor in clean tech workforce development, UB TCIE works with industry partners to assess workforce needs, develop and deliver seated, remote, and blended courses, and measure program impact to facilitate continuous improvement.

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UB TCIE awarded $500000 grant to grow New York's offshore wind ... - University at Buffalo

Norwegian oil and gas Equinor has informed that the Hywind Tampen floating wind farm, the world's largest, has started delivering power to its Snorre field, offshore Norway.

"As the operator, were proud to announce on behalf of the partners first power production to the Snorre oil and gas field in the Norwegian Sea from the worlds largest offshore wind park, Hywind Tampen," Equinor said.

Hywind Tampen production started in November 2022 by delivering power to the Gullfaks field. While some work still remains, both fields are now online, Equinor said.

"As the first wind farm globally to power oil and gas installations, Hywind Tampen is expected to meet about 35% of the electricity demand of the Gullfaks and Snorre fields once it reaches full capacity, reducing CO2 emissions by approximately 200,000 tonnes annually. Now 10 of 11 turbines are installed on the field, and the last is due to go offshore this week," Equinor said.

The 88MW Hywind Tampen floating wind farm is owned by the Gullfaks and Snorre partnerships, which include Petoro, OMV, Vr Energi , Wintershall Dea, and INPEX Idemitsu Norge.

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World's Largest Floating Wind Farm Powers Up Another Norwegian Offshore Field - Offshore Engineer

WASHINGTON The Center for Biological Diversity filed a formal notice today of its intent to sue the U.S. Interior Department for failing to adequately protect endangered whooping cranes, Kemps ridley sea turtles, manatees and other imperiled species from the dangers of offshore oil and gas extraction in the Gulf of Mexico.

Todays notice says the agencys Endangered Species Act analysis fails to properly consider or mitigate the risk of oil spills, bird collisions with offshore platforms, manatee vessel strikes and climate change, among other things. It was sent to the Fish and Wildlife Service, the Bureau of Ocean Energy Management, and the Bureau of Safety and Environmental Enforcement.

The Biden administration cant keep approving more drilling and ignoring offshore oil extractions huge threats to these endangered animals, said Kristen Monsell, oceans legal director at the Center. Birds, sea turtles, manatees and many other species shouldnt have to suffer and die because the oil industry is fouling the Gulf of Mexico. A full science-based analysis will show that offshore drilling is just too risky to wildlife and our climate and should be phased out.

Todays filing also says new information demonstrates even greater threats from offshore drilling than the 2018 analysis describes. This includes recent dramatic declines in the Gulf manatee population, the recent decline of Kemps ridley sea turtles, and new science showing that offshore oil and gas drilling does more harm to the climate than previously understood.

From 2017 to 2019 the Florida subspecies of manatee lost nearly 7% of its population each year. These manatees also began suffering from starvation in December 2020, in numbers so significant that scientists refer to it as an unusual mortality event. Nearly 2,000 manatees died in 2021 and 2022 combined. This two-year mortality record represents more than 20% of all manatees in Florida.

Kemps ridley and loggerhead sea turtles in the Gulf have been decreasing in size, which some studies suggest may be linked to harmful effects from the Deepwater Horizon oil spill in 2010. Smaller turtles could have more difficulty recovering from future spills.

The bureaus manage and permit oil and gas activity in federal waters. They are required under the Endangered Species Act to conduct a comprehensive analysis, in consultation with the Fish and Wildlife Service, of the potential effects and harms from these activities on threatened and endangered birds, nesting sea turtles, manatees and other species and their habitats.

Todays notice is required before the Center can file a lawsuit to compel the bureaus to comply with the Act.

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Lawsuit Launched to Protect Gulf of Mexico Wildlife From Offshore ... - Center for Biological Diversity

India will soon launch its first offshore wind energy tender and the government is hopeful that its plan to bid out 37 gigawatts (GW) equivalent of offshore wind projects by 2029-30 will attract enough players to the sector, Dinesh Jagdale, Joint Secretary, Ministry of New and Renewable Energy, told Moneycontrol.

Jagdale, who handles wind and bio energy at the ministry, said the offshore wind seabed lease tender under model 3 is expected to be floated within the next 4-6 weeks. The model 3 will entail the development of offshore projects without any viability gap funding (VGF) from the government. These projects need not sell power to power distribution companies (discoms). The tender for offshore wind projects to be awarded with VGF support from the government will follow soon in 2023-24, he said.

Despite having a coastline of 7,600 km and significant potential, India doesnt have offshore wind energy capacity. The government is trying to push capacity addition by offering tenders through different models that include seabed leasing and offering financial support. Jagdale said he expects the cost of offshore wind projects to decline by the end of the decade such that these projects will become viable even without VGF from the government. Edited excerpts of the interview:

India has offshore wind potential but no capacity to speak of. Now with the offshore wind bid timeline in place, how soon can we see the bids opening?

Over the lastone year or so, we came out with a strategy paper, then we came out with the draft bid and then there were two consultation rounds. The first bid is under model 3 where we are actually leasing out the seabed blocks on a competitive basis. Those who pay the maximum lease and score the maximum points as per the techno-commercial weightage will get the project.

This bid is basically for the people to get the C grade blocks, do the survey, do the detailed project reports, construct the project and then sell the power bilaterally, not to the discoms. They can sell through open access to consumers, industries, exchange mechanisms or any other mechanism that they feel good about. There will be no VGF. We expect to invite bids in four to six weeks; only a few final points are pending. Once we are able to tweak that and satisfy the conditions, we will be able to come out with the tender.

This project is without VGF. So what kind of electricity tariff are you expecting from such projects?

Without VGF, it will go straight to their consumers. Across Gujarat, it will be around Rs 8 per unit. If you go to Tamil Nadu, it will be around Rs 7 per unit. These projects will take probably 7 to 8 years for construction. So these projects are going to be for captive use or for selling to industrial and commercial consumers. Today, the rate for industries is around Rs 8 to 10 (per unit) and for commercial is much more than Rs 10 (per unit). Therefore, when they start selling power in open access by 2030, the cost which may be at Rs 7 (per unit) today will come down to Rs 5 (per unit). At that stage, we will not give any VGF.

What is the status of the offshore wind tender that will be awarded with VGF?

We have in-principle approval from the Ministry of Finance for VGF. Now we will go to the Cabinet for clearance for VGF. As soon as we get that, we will go ahead with the first batch of 1 GW of tender. I am expecting this to happen during this financial year 2023-24.

Offshore wind continues to be expensive. But you mentioned you will not continue with VGF support beyond a point. What is the plan?

In the UK and Denmark markets, cost reduction is happening across the offshore wind supply chain. The turbines are getting bigger, the hardware cost is reducing, the transmission is getting bigger and better leading to cost reduction. The cost was, say, Rs 25 crore per megawatt (MW), now it is around Rs 20 crore. We expect it to reach Rs 15 crore per MW. Once we get to less than Rs 15 crore per MW, with the available wind speeds that we have across Tamil Nadu, we will be able to get tariffs of around Rs 4 to 4.5 per unit, which will be self-sufficient.

But the industry feels that Rs 4 per unit tariff for offshore wind is too ambitious. Your thoughts?

If I release the bid today, it is going to take at least five years to construct the project. So the bids that I am going to support with VGF are going to take time till 2028-29 or 2029-30. By that time, my entire infrastructure supply chain is going to be ready. So the projects that are going to come after 2029-30 will not require VGF. And I say that because by the end of this decade, the volume that is going to go up across the globe is massive, and therefore the cost of turbines will come down.

The government has indicated a bid target of 37 GW for offshore wind by 2030. What would be the timeline for capacity addition?

Projects will be awarded soon. When we talk of 37 GW, that is the bidding trajectory. That is not the completion trajectory. Projects which are awarded in 2023 will probably get commissioned in 2028. Bids will be coming up in batches for the total 37 GW up to 2030.

One of the biggest challenges in adding renewable energy capacity has been the supply chain issues. We have faced this problem with solar and even thermal power. From our learnings from these sectors, how can we handle offshore wind differently to avoid these issues?

The biggest advantage India has is the existing turbine technology players are already in India. Companies like Siemens Gamesa, GE and Envision already have assembly capacities, design shops, and everything else in-house. They are technically here within India, doing business on onshore projects, they only have to expand their base. For them to change their investment to the requirements offshore is going to be much easier. And that is where we are trying to encash. They are producing a 3.6 MW turbine, now we have to produce 15 MW turbines, for which the government has given trajectory and will be giving the necessary industrial setup near the ports. The state governments are keen to join hands with companies; they have a good workforce that will support their needs. We will create the demand that is required through the bids. What else do we need for industry or for entrepreneurs to put in investments?

The industry said they will invest only when they see a strong pipeline of offshore wind projects

The first tender is coming out soon. We have given 37 GW of trajectory. What else is needed? I think no country has given a trajectory, year-wise break-up for 37 GW. It may go one or two months here and there in the initial setup because that's where every government has its own challenges. But once the first tender comes out, and if we follow this, we will be on track for the 500 GW mission for renewable energy.

NTPC and other local companies have sought a level-playing field for offshore wind projects as they believe that the current bid norms favour international companies which have experience in setting up these projects. What is the ministry doing to address this concern?

We are working on that. Experience is also important; there will be joint ventures and partnerships around that. We will ensure that there is a larger participation and there are serious participants. We have already received feedback on one or two issues. We already have a consultation paper and we are going to get into the details.

Globally, gas-based power and hydropower are used as backups to complement intermittent renewable energy. Gas and hydro projects in India are a challenge. The other way to ensure round-the-clock power is through storage battery and pump storage but we are still in the early stages of developing that. How can this be expedited?

Battery storage is going to play a critical role and pump storage too. PLI (production-linked incentives) and VGF will support them.

But have we reached a stage where we have substantial renewable energy capacity but not enough backup power? Would this lead to disruptions?

I don't think that we have come to that stage. There is some elasticity in the grid, which we'll adapt as we go forward. We are not at that stage where the grid will collapse. But we have to start now. We have scaled it (backup power) up, and we will be able to support it. But if we don't start now, then we will be in trouble, so therefore we have started working on it.

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Offshore wind may not need govt financial support beyond 2030 as project cost may decline: MNRE Joint... - Moneycontrol

The Government has said that the new Maritime Area Regulatory Authority (MARA) will be established on July 17.

The announcement was made by the Minister for Housing, Local Government and Heritage, Darragh O'Brien, who also confirmed Laura Brien has been appointed the Chief Executive Officer of the new body.

Ms Brien is currently the CEO of the Health Insurance Authority.

The agency will be responsible for assessing applications for Maritime Area Consents (MACs) permits required before offshore wind developers and those behind other projects in the maritime area can make a planning application.

It will also be responsible for granting licences for certain activities in the maritime area.

"I am very pleased to be taking up the role of Chief Executive of MARA and working with the team to build the skills and expertise to deliver on MARAs mandate," said Ms OBrien.

"MARA will be a key enabler supporting delivery of projects of strategic importance including offshore renewable energy, ports development, cabling and telecoms projects, and many uses of the maritime area."

The development was welcomed by both Minister OBrien and the Minister for the Environment, Eamon Ryan.

"In recent months we have seen the introduction of a robust policy framework for offshore wind, which has given investors confidence, as demonstrated by last weeks excellent result of the first offshore renewable energy auction," he said.

"MARA will play a critical role from its beginnings and I look forward to our offshore renewable targets being met, and to a clean energy transformation for the health and economic prosperity of our citizens."

Ms Brien has spent two and a half decades in the area of regulation.

She is a former Director of the Commission for the Regulation of Utilities and was previously also a senior economic advisor at telecoms regulator Comreg.

Earlier in her career she also advised regulators, utilities and governments in the energy sector around the world.

Last week the results of the State's first offshore wind energy auction were announced, with four projects winning over 3GW of capacity at an average cost of 86.05 per mega watt hour.

SSE was among two developers that failed to win out in the auction.

Today it said that while it was disappointed with the auction result, its Arklow Bank Wind Park II is a hugely important project in its offshore pipeline and it remains committed to its delivery.

Speaking at the Wind Energy Ireland Offshore Conference, Maria Ryan, Director of Offshore Development of SSE Renewables said the company is now taking time to assess the outcome of this result and the options available to it to secure a route to market.

She said SSE believes that Arklow Bank has a critical role to play in contributing to Ireland's climate action targets, to Irelands homegrown energy security and to the national and regional economy.

She added that the company will continue to progress the Arklow Bank project and work towards the preparation of a planning application which it will submit later this year.

"With this in mind, setting the planning system up for success will be essential," she said.

"Ensuring sufficient resources are in place across planning and consenting to support projects to go through the process, in a fair and thorough manner, but at pace."

She also called for stepping-stone targets to set a path out to the country's 2050 renewables target of 37GW.

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Maritime regulatory agency to be established on June 17 - RTE.ie