*Equnior and Shell have exited the Irish market.
CLARE COUNTY COUNCIL have been urged to deliver added income in development levies from renewable energy companies.
While Clare’s potential for offshore renewable energy has been well flouted, dividends have yet to bear fruit with both Equinor and Shell opting to exit the Irish market having previously committed to separate projects off the coast of West Clare.
Cllr Cillian Murphy (FF) in a question to the local authority cited “the extremely significant future investments” to be made in Clare in the area of offshore renewables “and in the absence of rates income” for these developments when he asked “what mechanisms might be available to the Council under planning legislation that could deliver added income through development levies for the provision of housing, amenity, waste, roads and other infrastructure necessary to ensure our communities can capitalize on this increased economic activity”.
Under Section 48 of the Planning and Development Act, planning authorities must have a development contribution scheme in place to set out the basis for contributions payable in respect of public infrastructure and facilities benefitting development in the area of the planning authority.
In Clare, the Development Contribution Scheme 2017 – 2023 was adopted by elected representatives on April 24th 2017.
Director of Economic Development with the Council, Liam Conneally outlined that the Economic Development Strategic Policy Committee (SPC) has commenced preparatory work on the new scheme. “A full review of contributions payable for all types of development will be undertaken as part of the preparation of the new Scheme which, subject to adoption by the Members, will come into effect in 2023”.
Under the Maritime Area Planning (MAP) Act 2021, the nearshore area for coastal planning authorities is defined as an area extending three nautical miles (5.6km) from the nearest point of the high-water mark. Conneally advised, “the new development contribution scheme will provide for contributions payable for developments on land and on this 5.6km nearshore area”.
He acknowledged, “Offshore renewable energy projects are unlikely to be developed within the nearshore area, however offshore renewable projects will need to bring electricity generated to land to connect to the national grid and there will be a requirement for other development on land (assembly of wind turbines, dry ports, wet ports, green hydrogen electrolysis facilities, etc) to support any offshore developments. This category of development will be considered in the preparation of the new development contribution scheme and a basis for levying contributions will be included in the 2023 Scheme”.
Strategic infrastructure development (SID) applications made under the MAP Act to An Bord Pleanála may also be subject to the payment of development contributions. The MAP Act amended the Planning and Development Act 2000 allowing An Bord Pleanála attach a condition when it is viewed that the construction of a facility “would provide a substantial gain to the community, or the provision, or the financing (in whole or in part) of the provision, of a service that, in the opinion of the Board, would provide such a gain, in the area in which it is proposed to carry out the development”.
Conneally also flagged that the Planning and Development Act provides for the conditions requiring the payment of a contribution in respect of public infrastructure and facilities benefiting development in the functional area of any coastal planning authority in which the development concerned is (in whole or in part) proposed to be situated.
This prompted him to surmise, “I consider that there are sufficient mechanisms in legislation to deliver community benefit from all future strategic infrastructure development proposals on and off the coast of Co. Clare”.
According to Cllr Murphy, this detail “gives us a real sense of the development fees open to this Council in light of the hundreds of millions of euros to be invested in Clare in the future”. He suggested a working group be established immediately. “We need to look down the road and see what’s coming down the track. I think the developers are quite critical to this with public consultation in communities and work on the ground ongoing”. The Kilkee representative noted “significant community benefits” associated with the developments as another argument to set up the working group.
“It brings to the fore what community really means,” Cllr Joe Garrihy (FG) stated. He felt a strategy would prevent developers from paying off local areas through sponsorship. “It might help to stop what some groups can get away, sponsoring a community garden or building a GAA field in a community isn’t enough, we need to be more strategic”. This approach has led to communities “fighting over what is a relatively small amount of money”.
Further support was voiced by Cllr PJ Kelly (FF). “We have to be careful that we don’t forget onshore development. If we have too much emphasis on something which isn’t guaranteed to be a winner, we have to be careful”.
Referencing his almost two decades involvement with community based and commercial renewables, Cllr Johnny Flynn (FG) quoted a survey of industrial figures which labelled Ireland’s targets for offshore energy as “unrealistic”. He said, “Because the State owns waters there are no landowners with property rights. I don’t believe private developers should be let own the wealth”.
Addressing the meeting, Conneally outlined that it takes €2.8bn of investment to deliver 1GW of renewable electricity. Members of the North Seas Energy Cooperation (NSEC) earlier this year set Ireland the non-binding target of reaching 7GW of renewable energy power by 2030. To reach this, the Director said “there would have to be significant investment by the State, semi-state and primarily the private sector”.
On the comments relating to communities by councillors, he said “proper governance” needs to be established in the area.
Concluding the discussion, Cllr Murphy said companies looking to start construction in 2028 need to be in the planning stage presently. “We have to look at community the benefit pot coming down the track”.
