Climate Action Plan 2024 – A Focus On The Electricity Sector – Renewables

The Climate Action and Low Carbon Development Act 2015, as
amended (the 2015 Act) commits Ireland to reducing
its greenhouse gas (GHG) emissions by 51% from
2018 levels by 2030 and achieving net-zero emissions by 2050.

Following the amendments to the 2015 Act made in 2021, the
Minister for the Environment, Climate and Communications must
publish an updated climate action plan annually. The Climate Action
Plan 2024 (CAP24) was approved by Government in
December 2023 and is the third update to the Climate Action Plan
2019 to Tackle Climate Breakdown, Ireland’s first climate
action plan.

The Electricity Sector

The electricity sector, as a significant source of GHG emissions
in Ireland, is a critical focus area of CAP24. In 2022, electricity
generation was responsible for 14.4% of Ireland’s total GHG
emissions. Progress across the electricity sector under the Climate
Action Plan 2023 included the delivery of the onshore Renewable
Electricity Support Scheme (RESS) 3 Auction and
the completion of the first Offshore RESS Auction. See our coverage
here and here. The Maritime Area Regulatory Authority
(MARA) was also established to play a key role in
the streamlined offshore consenting process (including for offshore
renewable energy projects) introduced by the Maritime Area Planning
Acts.

Body:

CAP24 builds on the Climate Action Plan 2023 by refining and
updating the measures and actions required to adhere to the Irish
carbon budget and the sectoral emissions ceilings, prepared by the
Minister, within the limits of the carbon budget.

Key Measures and Actions

CAP24 recognises that, while progress has been made in
decarbonising the electricity sector, based on SEAI projections, it
is going to be “extremely challenging” to meet
the electricity emissions ceilings for carbon budget period 1
(2021-2025) and period 2 (2026-2030).

CAP24 identifies three key measures requiring major progress,
these are:

• accelerate and increase the deployment of renewable energy to
  replace fossil fuels;




• deliver a flexible system to support renewables and demand;
  and




• manage demand.

Accelerate and increase the deployment of renewable energy to
replace fossil fuels

CAP24 recognises that the deployment of renewables needs to
outpace the growth in energy demand for it to deliver the required
reductions in GHG emissions. Some of the targets outlined in CAP24
for the deployment of renewables are:

• 50% renewable electricity share by 2025, increasing to 80% by
  2030;




• 6GW of onshore wind by 2023, increasing to 9GW in 2030;




• up to 5GW solar capacity by 2025, increasing to 8GW by 2030;
  and




• at least 5GW to come from offshore wind by 2030.

A KPI for 2030 is also green hydrogen production from surplus
renewable electricity generation. For further information on this,
see our coverage of Ireland’s National Hydrogen
Strategy.

Among the measures outlined to accelerate and increase such
deployment is ensuring that Local Authorities, An Bord
Pleanála and MARA are sufficiently resourced. In addition,
several plans, strategies, and frameworks are to be published in
the renewable energy space, including a new Grid Connection Policy,
draft Revised Wind Energy Development Guidelines and the revised
methodology for Local Authorities Renewable Energy Strategies.

Renewables & the Just Transition

A further measure is for all new or repowered renewable energy
projects to implement a Community Benefit Fund
(CBF) equivalent to those provided for under RESS
which require payments of €2/MWh. The CBF would be used for
the wider economic, environmental, social, and cultural well-being
of the local community and is designed to incentivise investment in
local renewable energy, energy efficiency measures and climate
action initiatives. Communities can also participate in
decision-making on the allocation of the funds in the CBF.

Deliver a flexible system to support renewables and demand

In addition to accelerating the deployment of renewable energy
generation, CAP24 outlines that it is necessary to accelerate grid
flexibility and manage electricity demand growth.

Among the measures outlined to accelerate grid flexibility are:
the delivery of at least three new electricity transmission grid
connections or interconnectors; the publication of the Electricity
Storage Policy which will support the further deployment of
electricity storage in Ireland, including longer term storage; and
an increase in the deployment of medium to long-term storage
technologies.

Managing Electricity Demand Growth

To manage the growth in demand for electricity, a number of
measures are outlined including: ensuring that 15-20% of the
electricity system demand is flexible by 2025, increasing to 20-30%
by 2030; and the delivery of a demand side strategy that should,
among other things, (i) accelerate the rollout of local flexibility
markets by the Distribution System Operator and (ii) contain
measures to incentivise Large Energy Users to increase the
flexibility in their electricity demand.

Conclusion

As outlined, the key measures for the electricity sector centre
around accelerating renewable energy deployment and grid
flexibility to support demand in addition to managing demand
growth. The planned publications outlined under CAP24, as well as
the Planning and Development Bill 2023, will be essential to
Ireland successfully achieving the necessary reductions in its GHG
emissions.

While CAP24 has been approved by Government, it is now subject
to Strategic Environmental Assessment and Appropriate Assessment.
Public consultation closed on 5 April 2024. Further changes may
still be made before its final version is published.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.