Dear Chamber Member,

This Monday, Government launched the Maritime Area Consent (MAC) system. This planning framework for the sea will enable an acceleration of our transition to renewable energy, utilising one of Ireland's greatest resources, wind.

It is a timely milestone as in the past weeks, the case for bringing autonomy to Irish energy production has been brought sharply to the fore as one of the knock-on impacts of the tragic events unfolding in Ukraine. It is critical that the next steps taken by the Irish Government to enable Ireland's energy independence, through the wide scale deployment of renewables and storage technology must be swift and sure footed.
 
Ambition and leadership
5GW of offshore wind energy by 2030 should be seen as a minimum threshold target. The overall target must be much more ambitious - the Celtic Sea alone has potential for 50GW of offshore wind. For context, the UK is set for 40GW by 2030, Germany for 40GW by 2040 and France for 40GW by 2050.
 
Ireland became the second country in the world to formally declare a climate emergency in 2019. If action to meet the legally binding target of net-zero greenhouse gas emissions no later than 2050, and a reduction of 51% by 2030, as well as a target to increase the proportion of renewable electricity to up to 80% by 2030 does not follow that declaration, the damage will not only be environmental but reputational.
 
The required urgency must be reflected in the funding and resourcing of Maritime Area Regulatory Authority (MARA) and in a strong and bold iteration of the forthcoming Offshore Renewable Electricity Support Scheme (ORESS).
 
From day one, MARA will need capability and capacity, to ensure it rapidly facilitates applications to develop renewable assets. As the whole of the renewable sector scales up the theme of resources will likely be a challenge for relevant Government departments, An Bord Pleanála, Local Authorities, National Parks and Wildlife Service, EirGrid, ESB Networks and the Commission for Regulation of Utilities (CRU). In a climate and energy security crisis it is essential that there is no weak link that inhibits the pace of development. We cannot afford for projects to get caught up in an under resourced system.
 
Investor confidence
Investor confidence is critical to the success of the Irish market and the capital investment, green energy, and jobs associated with the offshore wind sector must be supported. Regulatory conditions should support and empower renewable energy projects. It is a form of foreign direct investment that helps us meet our climate change targets and the Equinor exit cannot be repeated. The timely processing of applications for relevant project status will go a long way to instil investor confidence. 
 
Readiness of the Supply Chain
A progressive regime for renewables presents an unparalleled opportunity for Cork and Ireland - to foster ethical energy solutions, a resilient economy and address the climate crisis. There are opportunities for business and employment in supply chain, turbine installation, construction, technical innovation and operations and maintenance.
 
Cork and Ireland must be ready to compete as a destination of choice for investment where competing projects in the UK, USA and Asia are already well underway. There are currently only three suppliers of offshore wind turbines worldwide and overall, the top three manufacturers represented over 90% percent share of deployed turbines. Ireland must do better at supply chain capture and R&D allocation and detailed strategy must be set out on this front.
 
Only a few European seaports are currently suitable for floating wind manufacturing, assembly, and servicing projects in Ireland waters, yet the UK Government are actively investing to ensure their Irish and Celtic Sea facing ports are placed to compete directly with Irish counterparts with cap ex programmes and freeport status in the mix. The readiness of Irish Ports for equipment delivery and assembly on and offshore must be further enabled, supported and locked into future support schemes. Cork and Ireland can be a de facto-floating offshore wind and hydrogen hub for the Irish and Celtic Sea, but without clear strategy and focus the opportunity could easily be missed. Alongside a hydrogen strategy, a ports and infrastructure strategy must be actively pursued.
 
It would appear that the topic of energy here to stay in a major way. It has implications of the highest order for business, society, the environment, democracy and Europe. The widespread rollout of renewables is not only reputationally critical but an ethical imperative. Clean, cost-effective energy for communities, and businesses must move from ambition to reality. The private sector is ready to work with Government to make this happen.

I would like to draw your attention to our Quarterly Economic Trends survey, which is open for your responses. This quarter, we have included questions around energy and your feedback will be very valuable as we increase our national and local lobbying activity on this and other issues affecting business in our region. Please share your views and experiences in our short survey here: https://bit.ly/36G7qEN 

Warm regards,

Conor Healy

CEO