Potential for jobs

The findings of an independent Trinity College Dublin (TCD)/ Economic Social Research Institute (ESRI) report, commissioned by Siemens and the Irish Wind Energy Association (IWEA) to examine the job creation potential of the development of the wind energy sector in Ireland, were announced today (19th February 2014) and revealed the sector has the potential to generate up to 35,000 jobs across the economy.

 

TCD and the ESRI state that the overarching results of the report entitled ‘An  Enterprising  Wind;  An  
Economic Analysis Of The Job Creation Potential  Of  The  Wind  Sector  In  Ireland’ suggest that
continuing to grow the wind power industry in Ireland would have a substantial positive impact on
the economy. Overall investment would amount to between between  €7  and  €29  billion  depending
on the level of ambition pursued and that this significant level of investment, combined with
employment  growth,  would  contribute  significantly  to  Ireland’s  economic  growth.

The  report  analyses  three  different  scenarios  of  Ireland’s  installed  wind  capacity  and  the  impact  
these scenarios would have:

Scenario 1: Ireland meets its binding current 2020 targets and installs 4000MW of wind energy –
resulting in 8355 jobs, more than doubling of the jobs numbers that currently exist
in the sector.

Scenario 2: Ireland builds on the existing Irish target of 4000MW and also adds 4000MW of
onshore and offshore wind energy capacity for export purposes – resulting in a total
of 17,084 jobs.

Scenario 3: Ireland develops 12000MW of installed wind capacity
through 4000MW of domestic capacity and an additional 8000MW dedicated for
export capacity (onshore and offshore) resulting in a total of 35,275 jobs within the
sector and other sectors of the economy (induced jobs) as a result of this investment
(22,675 + 12,600 respectively).

In undertaking the research, the export components of Scenario 2 and 3 assume that the cost of this
expansion of the wind industry is paid for through commercial revenue and with no investment
required from the Irish state.

The report looks at the types of jobs that can be created and associated value in the coming years.
The findings show that the bulk of the jobs would be created in the wind industry itself with a
smaller but not insignificant number of jobs generated as a result of the investment in the grid and
interconnection. Finally a macro-economic model is used to estimate the number of jobs that would
be created elsewhere in the economy as a result of the enhanced level of economic activity.

The study suggests that the potential manufacturing jobs would offer a way back into the workforce
for those currently unemployed and seeking entry level positions. In the same vein, a significant
proportion of these jobs (about 35%) are likely to be generated in regions where employment growth in an economic recovery may be slowest and where, as a consequence, unemployment may
remain stubbornly high.

Commenting on the study Kenneth Matthews, CEO of the Irish Wind Energy Association (IWEA) said:”This  independent  study highlights the considerable potential the wind energy sector has to drive
economic growth in Ireland and, most critically, creating local jobs in local communities. It is important now that all stakeholders and communities work closely together to grow the existing
employment level of this sector from 3400 to the potential that this report shows can be achievedfor  the  benefit  of  all.”  

Jobs created in the wind energy sector would span a range of areas including engineering, operation
& maintenance, executive and commercial roles and roles for low skilled workers. The report
highlights that Ireland has an existing comparative advantage in the design of IT systems and
software, likely to be a fruitful field in the energy sector for future investment and employment.

According  to  Gary  O’Callaghan,  Head  of  Energy  Sector,  Siemens,  Ireland  is  fortunate  to  enjoy  one  of  the best onshore and offshore wind regimes in the world and the debate in wind energy needs to
include the immense opportunities   that   harnessing   this   natural   resource   can   bring.   “The   key  motivation behind this report is to add independent academic and economic rigour to this debate,
particularly where it relates to the job creation potential and macro-economic investment potentialof  the  wind  energy  sector  in  Ireland.  Wind  energy  will  continue  to  assist  in  Ireland’s  recovery  while  at  
the  same  time  promoting  responsible,  sustainable  and  sensitive  development.”

Challenges  in  reaching  the  industry’s  full  potential  are  identified  and  include national transport
infrastructure delivery, role of exports and community support.

The  independent  academic  study  was  researched  and  produced  by  Dr.  Amy  O’Mahoney  of  TCD  and  Prof. John FitzGerald of the ESRI. It is first of its kind as it is based on a detailed study of delivered wind
energy projects in Ireland and other international studies into the economic impact of wind energy. 

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