Kilkenny windfarm conference told ‘unbankable community rules’ put climate goals at risk

Ireland will not reach its 2030 renewable energy targets without a workable pathway for community and small farmer-led wind projects, the Irish Wind Farmers Association (IWFA) warned at its annual conference in Kilkenny under the theme of ‘Accelerating Renewables to 2023’.

Speaking to more than 100 members and sector stakeholders last week, the organisation said a substantial share of this target depends on one and two-turbine projects, owned by farmers and community groups. However, these projects are the most disadvantaged under current planning, pricing, and ownership regulations.
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The IWFA welcomed elements of the recent planning reform passed in October, but cautioned that administrative and procedural delays remain an obstruction. It urged the Government to prioritise reforms that lower energy costs, support rural economies and strengthen national energy security. It is calling for -

Replace 100% ownership with a 51% community-controlled model.
Ensure fair pricing for community projects.
Increase wind project support price for a sub-6 MW two-turbine project for farmer-led and community-led renewables.
Enable hybrid co-location of wind, solar, and batteries to optimise the use of existing grid connections and reduce dispatch down.

Accelerating Renewables to 2030

The organisation estimates that 35 new small-scale SRESS (1-2 turbine community/SME) projects could close the State's onshore community RE target of 500 MW by 2030.

A survey** of members and stakeholders revealed that 9 in 10 respondents (91.7%) are ‘not confident’ that the Government can meet its 2030 climate obligations. Planning (44%) and Grid Connectivity (38.9%) are cited as the biggest barriers to making meaningful progress.

Unbankable
A central concern raised at the conference is the 2021 DECC policy requiring 100 per cent community ownership for Renewable Energy Communities (REC). The IWFA says the rule has rendered many projects unbankable, as lenders are unwilling to finance inexperienced, stand-alone community schemes.

"The 100% community rule made projects untenable," Richard Walshe, Chairperson of the IWFA, said. "Banks simply cannot finance inexperienced community projects. The fastest energy we can build is on Irish soil, by Irish farmers, for Irish communities. Irish wind farmers need to jump through too many hoops to build turbines and get connected to the grid. We're asking the Government today to revert to a 51 per cent REC model, pay a fair market rate for wind energy, allow hybrid connections and finally get out of our own way on planning."

Pricing was highlighted as an additional barrier. Community wind receives €90/MWh, compared with €98/MWh for commercial wind, while solar receives a bonus uplift.

“We didn't run out of wind. We ran into bureaucracy, banks can't fund," the chairman added. "Every delay costs households and businesses. Our members stand ready to deliver, but only if planning, grid and market rules finally line up." Walshe concluded.