Cantillon: NCC becomes a force in wind energy debate

The intervention this week of the National Competitiveness Council (NCC) in the debate over wind energy throws the spotlight once again on the level of State support for developers of wind farms. The industry has already been feeling the heat recently from a barrage of negative commentary over the benefits (or damage, depending upon your persuasion) to the economy of taxpayer-funded subventions for green energy.

The NCC warned in its report that the State should be wary of over-promoting investment in new electricity-generating infrastructure, such as wind mills, while there is so much over-capacity on the system. There is little point in subsidising new wind farms, it says, until they are needed because the costs of over-supply are borne by all consumers and businesses.

This echoes comments from Colm McCarthy, the UCD economist who regularly lambasts the supports given to the industry, and others including the Irish Academy of Engineers and economics commentator Cormac Lucey.

The academy and those critical economists are often dismissed as perennially “anti-wind” by the sector, which is genuinely stung by the public criticism, but the comments of the NCC will prove more difficult to combat.

The council is effectively the State’s designated adviser on all matter pertaining to economic competitiveness. It is listened to by those who tread the corridors of power.

Ireland will soon commit to new European emissions-reduction targets for 2030. The NCC has suggested that a full cost-benefit analysis of policy options should be undertaken before the Government signs on the dotted line.

The “Big Wind” lobby, as some of the industry’s detractors have labelled it, is believed to be preparing a PR campaign to blow the debate back on course. After Christmas expect it to puff out its cheeks and go on the offensive.