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Bord na Móna, the road to renewables and the building of Mount Lucas wind farm

Tuesday 2 June 2015

Author: Brendan Connolly, project manager, Bord na Móna Powergen Bord na Móna has been involved in the management of Ireland’s natural resources since the early days of the State’s existence. In the decades since it was established, the company has expanded beyond that part of the original mandate, focusing on the management of the nation’s peat resources, into other businesses built on its extensive landbank of more than 80,000 ha. Today Bord na Móna is in a process of accelerated transformation as it develops its newer businesses to position itself when its traditional peat-based businesses enter into a period of decline. With a workforce of more than 2,000 people, in various locations nationwide, the company has a broad range of business operations. Today Bord na Móna businesses encompass electricity generation, heating products, resource recovery, water management, growing media, environmental solutions and related services are involved in this change process. As diverse as these business are, none are exempt from this process of change. All the changes are taking place in the context of the global drive aimed at lowering the amount of carbon released into the atmosphere. Bord na Móna’s drive to decarbonise is itself informed by the transformation in European energy policy. In October 2014, the European Council, which consists of the heads of state of the EU member countries, confirmed that Europe has firmly embarked upon a pathway to a low carbon future with the ambition of reducing carbon emissions by up to 80 per cent from 1990 levels by 2050.

Low carbon road map

The EU low carbon road map, which gives an indication of the contribution that each sector of the economy will make to this emissions reduction effort, indicates that the electricity sector will have to contribute almost complete decarbonisation by 2050, due to limits to the feasibility in reducing in other areas, such as agriculture. In the 1980s, electricity in Ireland was generated from peat, hydro, gas and fuel oil, while the construction of Moneypoint power station in the early part of that decade introduced coal into the electricity generation fuel mix. Today, 35 years on, very little has changed in the fuel mix overall, with only fuel oil no longer in the mix in any significant way, and wind and biomass playing an ever increasing role. The figures show that Ireland has a long way to go to decarbonise its electricity generation system and there are even greater challenges for other sectors such as agriculture, heating and transport. The transition to decarbonised energy supply doesn’t take place in a vacuum where carbon reduction is the only consideration. Long-standing concerns around security of supply and the impact of energy cost on competitiveness must be balanced in the formulation of policy.

'Trilemma' of decarbonisation, security and cost

This ‘Trilemma’ around decarbonisation, security and cost presents big challenges to consumers and suppliers of all energy and doesn’t come with any quick-fix solutions. The pace of change to higher levels of decarbonisation is being curtailed by the potential impact on the competitiveness of Europe as a trading block if a global agreement on further carbon reductions post-Kyoto cannot be reached. Policymakers are, of course, aware of the potential cost of the necessary energy transition, but continue to pursue this objective because the additional costs are outweighed by greater concerns around the human and economic costs arising out of climate change. In Ireland, much debate is ongoing at present about the need to transform our energy system and the pace at which this should proceed. In this country, because of the abundance of sources of renewable energy, in particular wind power, we are in the fortunate position of being able to pursue a renewable generation policy that isn’t significantly more expensive than that generated from conventional sources. As a state-owned entity, Bord na Móna has a specific responsibility to deliver for our shareholder in a commercially and environmentally sustainable manner. Both the company and shareholder agree that Bord na Móna occupies a unique space when it comes to delivering on national energy policy. Bord na Móna’s move towards building a renewable energy supply for Ireland has accelerated in recent years. Its strategic assets have allowed it to develop its ambition to become a leading renewable electricity generator, supplying both the all-island and export markets. The company now generates in excess of 500,000 MWh of green electricity. This is enough to power more than 90,000 homes, providing a reliable and renewable electricity supply to the Irish grid.

Landbank of 80,000 ha

Significant investment is required to transform the electricity sector to a low carbon mode. The company’s landbank of 80,000 ha is situated in a part of Europe that has an abundance of one of the most cost-effective renewable energy sources on the planet. The landbank includes many areas that are now coming to the end of their commercial productive life for peat-based energy production. This production was the bedrock of Ireland’s energy security for many years and involved tens of thousands of employees, building and sustaining communities across Ireland. The company’s legacy of developing national energy assets in close association with local communities is key to understanding Bord na Móna’s past and present success in developing new renewable energy assets. The company’s latest renewable electricity facility at Mount Lucas, Co Offaly, was recently opened by Alex White, the Minister for Communications, Energy and Natural Resources. Sited on 1,100 of cutaway bog that exited production in 2004, the wind farm would become the first facility to be built on the midland’s vast cutaway bogs. The site was identified as a prime location for renewable energy generation in 2006 and following an application received planning permission for development in 2010. The 84MW Mount Lucas wind farm qualifies for support under the REFIT mechanism for renewable energy. Building on its legacy of close community co-operation, Bord na Móna pursued a policy of ongoing engagement with local communities around Mount Lucas. During the development of the facility the company met with community groups, held open days, community meetings and established a community benefit scheme. Apart from the direct supports to community, wind farms such as Mount Lucas support local suppliers of goods and services, local employment, provide road upgrades and are a significant source of rates and development contributions to local authorities. Bord na Móna has also deployed its ecology team, led by Dr Catherine Farrell, to Mount Lucas to rehabilitate the cutaway peatland and create a rich and biodiverse habitat across the 1,100 ha wind farm site. Locals and outdoor enthusiasts will shortly be able to enjoy the flourishing habitat when a 5km amenity and walking trail is opened there. It is intended that in the next 20 years, as more wind farms are developed people can enjoy the direct benefits of renewable energy facilities in communities which will be supplying clean, safe and renewable energy to cities, towns and villages all across Ireland.