Investigation into the feasibility of a West of Ireland Pumped Storage System

Ireland’s remote position on the tip of Europe ensures that the country is vulnerable to uncertainty of supply. The reliance on conventional sources of electricity has ensured that escalated prices and high carbon emissions have been witnessed whilst opportunities that inherent resources provide, such as the wind, have not been capitalised upon. The intermittent nature of the wind make it difficult to maximise its potential as in many cases the highest wind speeds are highest when demand is low. The West of Ireland’s combination of wind speeds and unique topography makes it suitable for and innovative wind powered pumped storage system, which can essentially regulate the wind generated electricity and integrate further penetration of renewable energy. In addition, its location along the Atlantic Ocean provides further scope for innovation as seawater can be integrated into the system design. The construction of such an unprecedented project in combination with increased interconnectors has the potential to make Ireland a rechargeable battery for Europe. However, such ambitious plans are at the very early stages and are in direct contrast to current events in the Irish energy market. This study focuses on the feasibility of West of Ireland pumped storage systems. Entailed within this is an extensive desk study, a detailed site selection process and a feasibility study of grid connection. To increase opportunities to identify the best possible site, the feasibility study was focused on the Galway and Mayo areas solely.

The concept of risk management in the renewable sector.

This study explores the perception of risk and the level of risk management implementation in the renewable sector. Risk management is emerging as a key issue due to the loss of confidence amongst banks, causing the attainment of financing to be difficult over the next few years. To attract financing, there is a fundamental requirement to manage risk in a way that minimizes the probability of a negative financial impact on the project. Miller and Lessard (2001) argue that successful projects are not selected but shaped with risk resolution in mind. Rather than evaluating projects at the outset based on projections of the full set of benefits, costs and risks over their lifetime, successful developers start with project ideas that have the potential of becoming viable. Therefore, this study bridges the gap that exists within the renewable sector in relation to risk management literature. This study succeeds through a detailed comparative case study analysis where two developers and two financiers were questioned through qualitative semi-structured interviews on the concept of risk management and its level implementation within the industry. It is believed that the growth in financed renewable energy projects depends on the adequate design and implementation of risk management to mitigate inherent project risks. However, this study revealed that are certain types of developers in existence within the renewable sector, which underestimate the magnitude of risk and view the development of projects as a ‘money racket’. Therefore, it can be concluded that perception of risk will also differ, causing risk and uncertainty to vary from project to project, resulting in investment reluctance to be associated with certain projects. The study originality lies in how it demonstrates to developers the concept of risk management, outlining the simplicity and benefits of implementing it in project development. Finally, this study contributes to the knowledge by enhancing the awareness and understanding of the presence and nature of risk in a RE project environment.